Zephyr Homeloans, a specialist buy-to-let mortgage lender, has recently cut interest rates on some of its key mortgage products. The reductions, which apply to both two-year and five-year fixed rate mortgages, make it a potentially advantageous time for property investors to review their financing options.
Zephyr Homeloans has lowered the rates on its two-year fixed-rate mortgages by 0.16% and on its five-year fixed rates by 0.06%. These reductions span across various loan-to-value (LTV) options and depend on the energy efficiency of the properties involved.
Rates Based on Energy Performance
For properties that boast an energy performance certificate (EPC) rating between A and C—signifying higher energy efficiency—the new rates are particularly competitive:
- Two-year fixed rates now range between 3.64% and 5.64% for loans at 65% LTV.
- Five-year fixed rates start from 4.69% at the same LTV.
Properties with lower EPC ratings (D or E), which may face higher operational costs due to less energy efficiency, are offered slightly higher rates:
- Two-year fixed rates for these properties lie between 3.74% and 5.74% at 65% LTV.
- Five-year fixed rates range from 4.79% to 5.59% at 65% LTV.
Fees and Options
The rates come with a range of fee options, allowing landlords to choose based on their financial strategy and cash flow needs. Fees are tiered at 3%, 5%, or 7%, providing a variety of entry points for different investment scenarios.
Moreover, for those looking to maximise their leverage, Zephyr offers five-year fixed rate mortgages at 80% LTV starting from 6.19%, notably with a 0% product fee. This particular offering could appeal to landlords aiming to expand their portfolios without incurring high upfront costs.
Management Commentary
Paul Fryers, the managing director at Zephyr Homeloans, emphasised the flexibility and choice these new rates offer to landlords. According to Fryers, the goal of these adjustments is to help landlords find mortgage deals that best suit their budgets, enhancing their ability to manage properties profitably amidst varying economic conditions.