Welcome to ‘Buy to Let Market’, a column aimed at providing you with recent criteria and product updates within the Buy to Let lending markets.
Buy to Let Market Update: –
Leeds Building Society – has launched an ‘easy start’ Buy to Let mortgage for landlords, with 0% interest for the first three months. The building society says it is an updated version of its Welcome Mortgage which was introduced to help borrowers while their finances may be tight around the period of moving house. The new version is to allow landlords to get properties ready for renting, according to Leeds Building Society. The four Easy Start products launched are a 2.72% loan available up to 60% Loan to Value, with a £999 fee, a 2.82% loan available up to 60% Loan to Value with no fee, a 3.09% loan available up to 70% Loan to Value with a £999 fee and finally a 3.24% available up to 70% Loan to Value with no fee.
Precise Mortgages – has launched a new 80% Loan to Value House in Multiple Occupation (HMO) exclusive through 3mc/RLA Mortgages fixed for 2 years at 3.19%. The product is available for both remortgages and purchases for HMO properties with up to 8 bedrooms. Available for both Limited Companies and Individuals.
The Mortgage Lender – has introduced a three-tier completion fee structure for its Buy to Let range with rate cuts at 70% Loan to Value for houses in multiple occupation (HMO) and multi-unit block (MUB) applicants. The lender has also introduced their lowest interest rate products with a percentage completion fee which are available through selected partners including 3mc/RLA Mortgages.
Virgin Money – has increased both the maximum age and maximum Loan to Value available for its Buy to Let products. The new Buy to Let products are two-year fixed rates at 80% Loan to Value starting from 3.45% with £1,995 fee and five-year fixed rates at 80% Loan to Value starting from 3.61% with £1,995 fee. For loans greater than 75% LTV, the maximum loan size is £350,000. In addition, the maximum lending age has been increased to 85 from 75 across all Buy to Let products. All Buy to Let purchase applications are available with £500 cashback. Free basic valuations are available on all Buy to Let remortgage applications with a choice of either free standard legal work or £300 cashback.
The Mortgage Works – has reduced rates for selected Limited Company and 80% Loan to Value mortgages by up to 0.10%, as well as introducing a new cashback of £1,000.
Pepper Money – has launched a 5 Yr. fixed rate range for investors who have an element of adverse registered within the last 6 to 18 months. The rates start from 4.17% and are available up to 80% Loan to Value. The products are available through selected partners including 3mc/RLA Mortgages.
Accord Mortgages – has added £250 cashback to selected 2 year fixed 60% and 65% Loan to Value deals. 5 Buy to Let products will now have £250 cashback and 9 different Buy to let products now have £500 cashback.
Coventry for Intermediaries – Has made some changes to their eligibility rules for reference rates on 5 Yr. or more fixed rates and their Interest Cover Ratio (ICR). The lender has increased the total gross income band for 125% ICR from less than £40,000 to less than £42,500 and have increased the ICR from 140% to 145% where the total gross income is £42,500 and above. They have also reduced the reference rate on 5 Yr. or more fixed rate products from 5% to 4.5%.
For further information on Buy to Let mortgages both for individuals and limited companies please contact RLA Mortgages on 0161 341 0581 or visit the website www.rlamortgages.co.uk.
Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for a specific product. The product rates are correct at the time of writing the article and are subject to change.
This is a financial promotion and in no way should it be viewed as a personal recommendation or advice. Before a recommendation/advice can be given, you should seek independent mortgage or financial advice. RLA Mortgages is operated exclusively for The Residential Landlords Association (RLA) by 3mc, which is authorised and regulated by the Financial Conduct Authority. FCA No. 302992. The Residential Landlords Association is an Introducer Appointed Representative of 3mc (UK) Limited.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Although the FCA regulates the way the majority of mortgages are sold, in most cases it does not regulate buy to let mortgages. This means you may have less protection if things go wrong with a Buy to Let mortgage.