Suffolk Building Society has announced a rate cut across its Buy-to-Let products, just as new regulations threaten to squeeze landlords’ profits.

In a move that will be music to the ears of property investors, the building society has reduced rates on a range of its fixed-rate Buy-to-Let mortgages by up to 30 basis points (bps). This includes products for standard Buy-to-Let, Light Refurbishment, Expat Buy-to-Let and even Holiday Lets.

What are the new rates?

Here’s a breakdown of the new rates on offer:

Buy-to-Let:

• 2-Year Fixed Rate: Reduced by 20bps to 5.39%, maximum loan of £1 million at 80% Loan-to-Value (LTV)
• 5-Year Fixed Rate: Reduced by 30bps to 5.19%, maximum loan of £1 million at 80% LTV

Buy-to-Let Light Refurbishment:

• 2-Year Fixed Rate: Reduced by 20bps to 5.49%, maximum loan of £1 million at 80% LTV
• 5-Year Fixed Rate: Reduced by 30bps to 5.29%, maximum loan of £1 million at 80% LTV

Expat Buy-to-Let:

• 2-Year Fixed Rate: Reduced by 16bps to 5.69%, maximum loan of £1 million at 80% LTV

Holiday Let:

• 2-Year Fixed Rate: Reduced by 14bps to 5.55%, maximum loan of £1 million at 80% LTV

Why the good news for landlords?

These rate cuts come at a time when landlords are facing increasing costs and regulatory changes, including new energy efficiency regulations and the upcoming Renters’ Rights Bill.

Charlotte Grimshaw, Head of Intermediary Relations and Mortgage Sales at Suffolk Building Society, acknowledged these challenges, stating: “Landlords are also facing further changes from the upcoming Renters’ Rights Bill. In addition, next month’s Budget may bring further change. As a result, landlords face uncertainty so saving money where possible is always a positive.”

First-Time Buyers Benefit Too!

The building society also slashed rates on its 95% LTV residential mortgages by up to 30 bps. This is great news for first-time buyers struggling to pull together a deposit, especially with the average UK house price now at a considerable £289,723.