Lenders have introduced a range of rate reductions and new product options this week. Here’s a summary for landlords and property investors of the changes that can impact the cost and availability of financing for rental properties.

Major Rate Cuts from Shawbrook

Shawbrook Bank has adjusted the interest rates across its range of BTL mortgage products. Both its complex and limited edition BTL offerings have seen reductions. Specifically, for loans ranging between £1 million and £5 million, the rates have been cut considerably:

• Five and ten-year fixed rates at 65% loan to value (LTV) have been reduced to 6.34%.
• Three-year fixed rates are now at 6.49% for 65% LTV and 6.59% for 75% LTV.
• Two-year fixed rates have decreased to 6.54% at 65% LTV and 6.64% at 75% LTV.

In a more targeted move, the limited edition complex BTL product has also seen adjustments:

• Five-year fixed-term rates are now set at 5.84% for 65% LTV and 5.94% for 75% LTV.
• Two-year fixed-term loans have been lowered to 5.44% at 65% LTV and 5.54% at 70% LTV, which is the maximum LTV available for this term.

CHL Mortgages Introduces New Fee Options

CHL Mortgages has responded to the competitive market by enhancing its product range for landlords. A new product fee option of 3.5% is now available across all LTV bands, complementing the existing fee structures of 2%, 5%, and 7%.

Their revised rates include:

• Two-year fixed terms for standard BTL properties starting at 3.20% with up to 55% LTV and a 7% product fee.
• Five-year fixed terms begin at 4.55% for standard properties and 4.62% for Houses in Multiple Occupation (HMO) or Multi-Unit Freehold Blocks (MUFB) properties.

New Developments at United Trust Bank Mortgages

United Trust Bank Mortgages (UTB) has expanded its offerings to include financing for new builds within its residential and BTL mortgage range. Following a major reprice, the interest rates have become more competitive:

• BTL mortgages now start from 4.84%.
• Residential mortgages are available from 5.99%.

Additionally, UTB has adjusted its credit criteria to accommodate a broader range of customer needs and is now accepting off-plan purchases. These are contingent upon the presence of a new build warranty or certificate, and a re-inspection before completion is mandatory. They are also offering incentives, such as a maximum of 5% builder’s deposit, which could be a significant boon for buyers.