Buy-to-let market update

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 lending markets. The information within this article is correct as at 31/01/2024.

The Mortgage Works – has reduced rates for new customers by up to 0.15 per cent, with pricing beginning from 3.54 per cent. This is the second rate cut in a week as the firm lowered select rates by up to 1.2 per cent.

Its two-year fixed rate for purchase and remortgage at 65 per cent loan to value (LTV) has fallen by 0.15 per cent to 3.54 per cent. It has a three per cent lender fee. The lender’s two-year fixed rate for purchase and remortgage at 75 per cent LTV has decreased by 0.05 per cent to 3.94 per cent. It has a £3,995 lender fee.

The five-year fixed rate for purchase and remortgage at 55 per cent LTV has gone down by up to 0.1 per cent to 3.84 per cent. It has a three per cent lender fee.

BM Solutions – has reduced the minimum stress rate for all two-year product applications. The lender has also reduced rates across their buy-to-let and let-to-buy range and introduced a tracker range.

Virgin Money – has reduced rates by up to 0.65 per cent. Two and five-year fixed rates with a £2,195 fee have decreased by 0.32 per cent and 0.29 per cent respectively. Pricing now starts from 4.2 per cent. Two and five-year fixed rates with a one per cent fee have reduced by up to 0.65 per cent and 0.3 per cent and begin with 4.64 per cent and 4.34 per cent respectively. Two and five-year fixed rates with a three per cent fee have fallen by 0.45 per and 0.37 per cent. Rates begin from 3.87 per cent and 3.97 per cent respectively. The lender has also increased the maximum term to 40 years.

NatWest – has reduced buy-to-let purchase rates by up to 0.48 per cent and buy-to-let remortgage rates by up to 0.40 per cent.

Accord Mortgages – has reduced buy-to-let rates by up to 0.95 per cent.

Coventry for Intermediaries – has reduced buy-to-let rates by up to 0.22 per cent.

Santander – has lowered its buy-to-let affordability rates. Its standard affordability rate has decreased from 8.04 per cent to 7.38 per cent, while the five-year fixed affordability rate has reduced from 6.54 per cent to 5.88 per cent. The affordability rate for its pound-for-pound remortgage has reduced to 5.88 per cent, down from 6.54 per cent.

Paragon Bank – has reduced the Paragon reference rate, from 5.5 per cent to 5 per cent, interest coverage ratios (ICR) are calculated in line with initial rates, except for sub-5 per cent products whereby ICRs are calculated at 5 per cent.

The lender has also extended its maximum loan term from 25 to 35 years, while reducing the amount of experience buy-to-let landlords are required to have for House in Multiple Occupation (HMO) and Multi-Unit Block (MUB) applications, down from a minimum of three years to two.

The lender has also updated the range of SAL member shared exclusive products. All of these products offer a free valuation, no application fee and £1,000 cashback (usually £750 on Paragon core range products).

Precise Mortgages – has reduced rates on its buy-to-let products. The lender’s two-year fixed rates now start from 4.19 per cent. And its five-year fixed rates start from 4.29 per cent. The reductions come with options for personal ownership, limited company, HMO, and limited company HMO landlords.

Aldermore Bank – has reduced rates across their buy-to-let range including HMOs and multi-unit freehold products. The five-year fixed rate with a 7 per cent lender fee reduced to 4.39 per cent for individuals and companies and 4.29 per cent for multi-property with single residential investment properties up to 75 per cent LTV.

Vida Homeloans – has reduced buy-to-let rates by up to 0.8 per cent. A Vida 36 standard five-year fix has reduced to 5.04 per cent at 75 per cent LTV and a standard limited edition two-year fix now starts from 6.00 per cent at 65 per cent LTV or 6.20 per cent at 75 per cent LTV, available at the same price point for individual units, HMO or MUB.

The Mortgage Lender (TML) – has reduced selected buy-to-let rates with rates now starting from 4.66 per cent for a five-year fixed product up to 75 per cent LTV, with a 5 per cent lender fee.

For further information on buy-to-let mortgages both for individuals and limited companies please contact SAL Mortgages on 0131 450 7169 or visit the SAL website

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 independent 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.



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