In an effort to win the attention of customers, lenders have started to cut their buy to let mortgage interest rates.
A significant number of fixed rate products in the buy to let sector are amongst the rates that have been reduced, which will be particularly good news for landlords wanting monthly payment certainty.
Intermediary-only lender Accord, the commercial arm of Yorkshire Building Society, has taken up to 0.17% off its range. All of the following products are currently available. They include a £1995 product fee and free standard valuation:
- Two year fixed rate has been reduced from 5.07% to 4.90%, up to 60% loan to value (only for remortgage). It offers a £250 cashback.
- Five year fixed rate for purchases has been reduced from 4.97% to 4.82%, up to 60% loan to value. It offers a £500 cashback.
In addition to the reduced rates, the lender has also introduced two new products:
- Two year fixed rate at 5.35%, up to 75% loan to value. It includes a £1495 product fee, free standard valuation and £500 cashback.
- Five year fixed rate at 5.39%, up to 75% loan to value (only for remortgage). No product fee, free standard valuation and free remortgage legal service.
The deals are particularly useful to portfolio landlords, as Accord allow portfolio’s of any size, where up to 10 properties are mortgaged.
Simon Garner, Accord buy to let mortgage, reported:
“We’re so pleased to be able to cut buy-to-let rates even further, ensuring our product range remains as competitive as possible for our brokers and their clients in a rapidly changing environment.”
“Cutting rates across LTVs also means landlords can benefit from even better value, regardless of the equity they have, and can choose from a variety of different options, including some with no initial product fee, and others which come with cashback.”
To remain competitive, high street BTL lenders have also started to reduce their rates. One mainstream lender who typically targets standard buy to let applications, has dropped their rates too; but their products do carry larger fees than others on the market.
This is where the role of the broker comes into sharp focus, so clients can ensure they are applying for a product with the most competitive overall cost possible, where being cost effective is the priority.
Various buy to let product rates have been reduced by the lender in question, including large portfolio products. All of the following products are currently available and come with a 3% product fee, free standard valuation and free legal services:
- Two year fixed rate has been reduced from 4.29% to 3.99%, up to 65% loan to value.
- Two year fixed rate has been reduced from 4.49% to 4.29%, up to 75% loan to value.
- Five year fixed rate has been reduced from 4.69% to 4.39%, up to 65% loan to value.
- Five year fixed rate has been reduced from 4.89% to 4.79%, up to 75% loan to value
Limited company and houses of multiple occupation products. The following products are currently available and come with a 3% product fee, free standard valuation and free legal services:
- Two year fixed rate has been reduced from 4.89% to 4.74%, up to 75% loan to value.
- Five year fixed rate has been reduced from 5.59% to 5.39%, up to 75% loan to value.
Opportunity to lock in a fixed rate deal
The Bank of England’s Monetary Policy Committee is expected to bring the Base Rate to a peak of 4.5% in 2023, so further increases are expected.
Therefore, the price cuts for fixed rates could prove to be a great opportunity to get a good deal locked in and achieve payment certainty during this time of economic change.
If you want to hedge your bets, there are also a number of tracker rate products available, from a range of lenders, that come with a ‘switch to fix’ facility. With this facility, if your tracker rate goes up within the initial rate period (where early repayment charges would typically apply), you can switch to your lender’s fixed rate range without penalty.
Contact our expert advisors to get a competitive deal straight away!