A number of mortgage lenders are lowering their rates, responding to a calming of the financial markets following the turmoil created by Liz Truss’s ill-fated mini-budget.
Mortgage brokers are reporting that HSBC, Virgin Money, Accord Mortgages, Clydesdale Bank, Coventry Building Society, Halifax and NatWest are among lenders that have cut rates.
Despite the base rate being hiked to 3% last week swap rates – which influence the cost of funding – have come down since new PM and Chancellor Rishi Sunak and Jeremy Hunt replaced Truss and Kwasi Kwarteng.
The Mortgage Works
The Mortgage Works made a number of reductions today, with pricing being split between products for landlords acting as individuals and those going through a limited company. They start at 3.99% for individuals and 4.74% for limited company landlords.
Daniel Clinton, head of The Mortgage Works, said: “As one of the largest buy-to-let lenders in the UK, we are continually looking at ways we can support landlords by offering them a wide range of options. These latest reductions to our fixed rates will help those who want to maximise cashflow while maintaining certainty over their repayments.”
For individuals buy-to-let rates include: a one-year fixed at 3.99% with a 2% fee, available up to 75% LTV; a two-year fixed at 4.39% with a 3% fee, available up to 65% LTV; a five-year fixed at 4.89% with a 3% fee, available up to 65% LTV; and a two-year tracker at 3.24% (Bank Base Rate plus 0.24%) with a 3% fee, available up to 65% LTV.
For limited company landlords there is: a one-year fixed at 4.74% with a 2% fee, available up to 75% LTV; a two-year fixed at 4.99% with a 3% fee, available up to 75% LTV; a five-year fixed at 5.49% with a 3% fee, available up to 75% LTV; and a two-year tracker at 3.49% (Bank Base Rate plus 0.49%) with a 3% fee, available up to 75% LTV.
The above are available for purchase and remortgage with other rate/fee and benefit combinations also available.
All TMW tracker products come with the switch to fix facility which allows customers to switch to an existing customer fixed rate at any time without incurring Early Repayment Charges.
As a result of these changes the buy to let stress rates will now be between 5.99% and 8.79% depending on the product selected.
Credit: Property Investor Post