Zephyr Homeloans has cut the interest rates on its mortgage products. The company has announced substantial cuts in their fixed mortgage rates, making these loans more affordable and appealing. Here’s the breakdown:

• 5-Year Fixed Rates: Cut by a whopping 65 basis points (bps). This is a technical way of saying that the interest rates have been reduced by 0.65%.
• 2-Year Fixed Rates: Reduced by 55 bps, or 0.55%.

Special Rates for Energy-Efficient Properties

Zephyr Homeloans is offering special rates for properties with good energy efficiency. Properties with an Energy Performance Certificate (EPC) rating between A and C will benefit from:

• A 4.80% rate on a 2-year fixed standard buy-to-let mortgage at a 65% loan-to-value (LTV) ratio. This means if your property is worth £100,000, you can borrow up to £65,000.
• A 5% product fee is applicable.

For their 5-year fixed standard buy-to-let mortgages, these properties will have:

• A rate of 5.30% at the same 65% LTV, with the same 5% product fee.

Rates for Less Energy-Efficient Properties

Properties rated D or E on the EPC aren’t left out. They will see:

• A 4.90% rate for 2-year fixed standard buy-to-let mortgages.
• A 5.40% rate for 5-year fixed terms. Both options come at 65% LTV with a 5% product fee.

What This Means for Landlords

Paul Fryers, the managing director at Zephyr Homeloans, expressed optimism about this move. He mentioned that with industry experts predicting an end to the current trend of base rate increases, Zephyr is excited to offer more affordable and attractive deals. This is great news for brokers and their landlord clients, as it means potentially lower costs and higher profits for those investing in rental properties.