Zephyr Homeloans, a specialist in the buy-to-let (BTL) mortgage market, has recently announced significant changes to its mortgage product offerings.
A standout feature of Zephyr Homeloans’ latest update is the introduction of a two-year fixed rate mortgage. This deal is set at a 65% loan-to-value (LTV) ratio, offering a fixed interest rate of 5.35% for standard properties that have an Energy Performance Certificate (EPC) rating between A and C. An EPC rating is a measure of a property’s energy efficiency, with A being the most efficient and E being less so.
Rates for Different EPC Ratings
The interest rate changes slightly for properties with lower EPC ratings. For those rated D or E, the rate is slightly higher at 5.65%. This differentiation in rates based on EPC ratings reflects the increasing focus on energy efficiency in property investments.
Special Considerations for HMOs and MUBs
Zephyr Homeloans has also tailored rates for specific types of properties such as Houses in Multiple Occupation (HMO) and Multi-Unit Freehold Blocks (MUB). For these properties, the two-year fixed rate at 65% LTV is 5.55% for those with EPC ratings between A and C. Properties with D and E ratings have a rate of 5.65%.
Five-Year Fixed Rate Mortgage Options
In addition to the two-year deal, Zephyr Homeloans offers a five-year fixed rate mortgage. This is set at 5.95% for properties with an EPC rating between A and C at 65% LTV. The rate increases to 6.05% for properties with D or E ratings, again highlighting the impact of energy efficiency on mortgage rates.
The Lifetime Tracker Mortgage
A unique product in their portfolio is the lifetime tracker mortgage. This mortgage tracks the Bank of England base rate for the life of the loan. The rate for this product is currently 6.94% for properties with an EPC rating between A and C at a 65% LTV. For those rated D or E, the rate is slightly higher at 7.04%.
Insight from Paul Fryers, Managing Director
Paul Fryers, the Managing Director at Zephyr Homeloans, commented on these changes. He acknowledged the challenges landlords face with general inflationary costs in the current economic climate. By adjusting their lending rates, Zephyr aims to support brokers and their landlord clients in navigating these challenges effectively.