Buy-to-let market update – September 2024

By Doug Hall, Director, 3mc

Welcome to ‘Buy-to-Let Market’, a column aimed at providing you with recent criteria and product updates within the buy-to-let (BTL) lending markets. The information within this article is correct as at 26/09/2024.

BTL market update:

BM Solutions – has reduced rates by up to 0.2 per cent on selected BTL and let-to-buy (LTB) products.

Santander for Intermediaries – has launched a new range of green remortgage products for BTL borrowers who have a valid A or B rated Energy Performance Certificate (EPC) on their property. The rates are 0.1 per cent lower than the equivalent standard remortgage rates, with BTL two and five-year fixes available from 60 per cent to 75 per cent loan to value (LTV).

Virgin Money – has reduced selected BTL rates. Five-year fixed rates with a 3 per cent lender fee now start from 3.80 per cent and rates with a £2,195 lender fee have reduced by up to 0.1 per cent, now starting from 4.02 per cent. Selected 60 per cent and 75 per cent LTV rates have lowered by up to 0.17 per cent, now starting from 4.17 per cent with a 1 per cent lender fee and 4.27 per cent with a £995 lender fee.

NatWest for Intermediaries – has reduced rates by up to 0.6 per cent, with the largest cut to a 75 per cent LTV product, down to 4.16 per cent with a £3,499 lender fee. At 60 per cent LTV, rates now start from 3.69 per cent with a £3,499 lender fee. Two-year fixed rate remortgage products have reduced by up to 0.47 per cent. At 60 per cent LTV, rates now start from 3.93 per cent, rising to 4.36 per cent at 75 per cent LTV.

Five-year BTL purchase rates have reduced by up to 0.32%, now available from 4.28 per cent at 60 per cent LTV and 4.32 per cent at 75 per cent LTV with a £995 lender fee. Five-year remortgage rates are down by up to 0.42 per cent, with the lowest rate at 60 per cent LTV now 3.90 per cent and 70 per cent LTV rates starting from 4.25 per cent.

The Mortgage Works – has reduced rates by up to 0.35 per cent across selected BTL products for new customers, with rates now starting from 3.49 per cent. The BTL two-year fixed rate (purchase and remortgage) has been reduced by 0.35 per cent to 3.99 per cent. It comes with a £3,995 lender fee, available up to 65 per cent LTV.

Other new business reduced rates include: A five-year fixed rate (purchase and remortgage) at 3.69 per cent with a 3 per cent lender fee, available up to 65 per cent LTV (reduced by 0.1 per cent).

A five-year fixed rate (purchase and remortgage) at 3.99 per cent with a £3,995 lender fee, available up to 65 per cent LTV (reduced by 0.15 per cent).

Paragon Bank – has launched a new two-year fixed-rate BTL mortgage with no lender fee, as well as a two-year discounted variable product with a low fee.

The no-fee two-year fix starts from 6.1 per cent for the purchase or remortgage of single self-contained properties with EPC ratings of A-C, going up to 6.15 per cent for properties with a D or E EPC rating, and 6.35 per cent for houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs).

The discounted variable rate product tracks Paragon’s standard variable rate (SVR) minus 3.16 per cent on EPC A-C rated properties and 3.11 per cent on the standard range. The mortgage is available with a 1.25 per cent lender fee, with rates starting at 6.19 per cent for the green option, 6.24 per cent on the standard product and 6.44 per cent for HMOs and MUFBs.

Both new products are available at a maximum of 75 per cent LTV. The options are available for individual and limited company applications in England, Scotland and Wales, and include a free mortgage valuation and have a £299 application fee.

Coventry for Intermediaries – has reduced selected BTL products by up to 0.45 per cent.

Leeds Building Society – has reduced rates by up to 0.17 per cent across their two-year, 60 per cent LTV BTL and portfolio BTL products.

The Mortgage Lender (TML) – has reduced rates across its five-year fixed rate BTL products. TML’s rates start from 4.71 per cent for standard properties, down from 4.86 per cent. There have also been reductions on the portfolio multi-loan products, now starting from 5.37 per cent, as well as further reductions on the expat, holiday let, and short-term let product ranges. The lender has also lowered rates on a number of five-year fixed rate products available for HMOs and MUFBs, with rates now starting from 4.96 per cent.

Precise – has reduced rates on their BTL range by 0.25 per cent. The lender’s refurbishment BTL suite has also been lowered by up to 1.05 per cent, and its Tier 1 products have been aligned with the standard refurbishment options to simplify the range.

In addition, pricing for its EPC C+ refurbishment BTL product has been reduced by 02 per cent.

Aldermore Bank – has launched a range of new limited-edition rates for landlords across its BTL mortgages. The limited-edition range has rates reduced by up to 0.2 per cent across both two- and five-year fixed-rate mortgages at up to 75 per cent LTV.

The new options include a two-year limited-edition fix with a 3 per cent lender fee, priced at 4.69 per cent for individual and company landlords with single residential investment properties. It also includes several five-year fixes for individual and company landlords with single residential investment properties offering zero, 1.5 per cent and 5 per cent lender fees, with pricing starting from 4.59 per cent.

Accord Mortgages – has reduced their BTL product range by up to 0.3 per cent. The reductions include a discount of up to 0.3 per cent on five-year fixes, with two-year fixes reducing by up to 0.15 per cent and three-year fixes by up to 0.20 per cent.

Vida Homeloans – has reduced rates across its BTL mortgages by up to 0.3 per cent.

Foundation Homeloans – has reduced rates across its BTL mortgages by up to 0.5 per cent.

Clydesdale Bank – has reduced selected rates by up to 0.4 per cent on their two and five-year fixed rates.

For further information on BTL mortgages both for individuals and limited companies please contact SAL Mortgages on 0131 450 7169 or visit the SAL website www.scottishlandlords.com

Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for a specific product. The product rates are correct at the time of writing the article and are subject to change.

This is an advertisement only and in no way should be viewed as a personal recommendation or advice. Before a recommendation of the suitability of the product can be given, we will direct you to 3mc (UK) Limited who can provide specialist mortgage advice. As part of this, they will ask questions so that they can fully understand your circumstances before giving advice.

SAL Mortgages is operated exclusively for the Scottish Association of Landlords (SAL) by 3mc (UK) Limited who is Authorised and Regulated by the Financial Conduct Authority and is entered on the FS Register under reference 302992.

Please note: 3mc can advise/arrange Business Buy to Let (BBTL) and Consumer Buy to Lets (CBTL). Of the two, only Consumer Buy to Lets are regulated by the FCA.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

ANY PROPERTY USED AS SECURITY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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