The NRLA published a roundup of latest news and products from the BTL mortgage market. Here’s our summary –
A Wave of Cuts
The Mortgage Works Leads the Charge
The Mortgage Works has made headlines not once, but twice in a single week, announcing rate cuts up to 0.15 percent for new customers. With rates now starting at a competitive 3.54 percent for two-year fixed-rate mortgages at 65 percent loan to value (LTV), they’re setting a robust tone for the market. They didn’t stop there; their 75 percent LTV rates have dipped to 3.94 percent, coupled with significant lender fees to sweeten the deal.
Rate Reductions Across the Board
From Virgin Money slashing rates by up to 0.65 percent to NatWest and Accord Mortgages trimming Buy to Let purchase and remortgage rates by as much as 0.95 percent, the trend is clear: lenders are keen to attract landlords. Coventry for Intermediaries and Santander have also joined the fray, with the latter making significant adjustments to its affordability rates, easing the financial strain on potential investors.
Long-term Planning Gets a Boost
Virgin Money has now extended the maximum term to 40 years, giving landlords more flexibility in managing their investments. Paragon Bank isn’t far behind, extending its loan terms to 35 years and lowering the experience bar for specific landlord applications, making it easier for new entrants to get a foot in the door.
Innovations and Offers Galore
Tech Meets Property
Landbay has introduced automated valuation models (AVMs) to speed up the offer process, a boon for landlords looking for quick turnaround times. This innovative approach, available on select five-year fixed rates, promises to streamline the valuation process, making it faster and more efficient.
Exclusive Deals and Cashback Offers
Birmingham Bank and United Trust Bank have rolled out new ranges and rate reductions, with special mentions of cashback offers for NRLA members, highlighting the benefits of association memberships in securing top deals.
What This Means for You
The current climate in the Buy to Let market is ripe with opportunity. The rate cuts and new product offerings reflect a competitive market where lenders are going the extra mile to attract business from landlords. This is an ideal time to consider your options, whether you’re expanding your portfolio or stepping into the market for the first time.
Key Takeaways:
- Rate Reductions: Significant rate cuts across major lenders make this an opportune moment to secure a favorable mortgage deal.
- Product Innovations: From AVMs to extended loan terms, lenders are innovating to meet landlord needs.
- Exclusive Deals: Membership in landlord associations like NRLA can unlock exclusive deals and cashback offers, adding value to your investments.