CHL Mortgages, a specialist lender, has recently announced significant rate cuts across various mortgage products. They have introduced attractive rate reductions for both individual landlords and limited companies. Notably, two-year fixed-rate deals now start at a lower rate of 5.40%, marking a decrease of 35 basis points (bps). Additionally, five-year fixed-rate offers are even more appealing, starting from 5.27%, reduced by up to 34bps.

Special Focus on Houses of Multiple Occupation

For landlords focusing on Houses of Multiple Occupation (HMOs) or multi-unit freehold blocks, there’s good news. The most significant rate cut from CHL is seen here, with a 39bps reduction. This means two-year fixed-rate products for these types of properties are now starting from 5.41%. Additionally, five-year fixed-rate options for HMOs have seen cuts of up to 36bps, with rates beginning at 5.30%.

Refurbishment Range Rate Reductions

For landlords looking to invest in property refurbishment, they have also made significant rate cuts. Their refurbishment range now sees up to 36bps reduction, with five-year fixed-rate offers starting at 5.23%.

The Bigger Picture: Market Trends and Prospects

Interest Rates and Market Stability

Ross Turrell, the commercial director of CHL Mortgages, has pointed out that these rate cuts are a response to signs of stability in long-term interest rates. Such stability in the market often leads to more competitive mortgage offers, benefiting landlords looking to finance or refinance their properties.

Rent, Affordability, and House Prices

An important aspect for landlords to consider is the rental market. Turrell notes improvements in rents and tenant affordability, driven by wage increases. Furthermore, there’s a softening of house prices when accounting for inflation, making property investments more accessible and potentially more profitable.