Buy to Let Market Update – April 2023
By Doug Hall, 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 12/04/2023.
Buy to Let Market Update: –
The Mortgage Works – has launched a new 55% Loan to Value (LTV) Buy to Let range for purchases and remortgages. The new 55% LTV products include a 5-year fixed rate at 4.09%, with a 3% lender fee. A 5-year fixed rate at 4.44%, with a £1,495 lender fee and a 5-year fixed rate at 4.74%, with no lender fee.
Paragon Bank – has launched 6 limited edition products for their portfolio range. These products start from 4.80%, offer a free mortgage valuation and are available for loans up to £4,000,000. They’re available for both purchases and remortgages on single self-contained units, HMOs and multi-unit blocks in England, Wales and Scotland. The lender has also launched a new semi exclusive product available through selected firms including 3mc/SAL Mortgages. The product is a 5-year fixed rate, available for single units only, is available up to 70% LTV and has a 3% lender completion fee and a free valuation. The fixed rate starts from 4.65%.
Accord Mortgages – has reduced Buy to Let rates across all loan to value (LTV) tiers by up to 0.24%. A 2-year fix at 60% LTV reduced to 4.64% from 4.77%. This comes with a £1,995 completion fee, and the option of either free remortgage legal service or £250 cashback. A 2-year fix at 65% LTV for clients who are purchasing a property cut to 4.76% from 4.94%, which comes with a £1,995 fee and £500 cashback. A 3-year fix at 75% LTV, now priced at 4.96% (was 5.20%), which comes with a £995 fee. Remortgages, also have the option of either £250 cashback or free remortgage legal service; and for house purchasers, the product comes with £250 cashback. All of the above come with a free standard valuation. The lender has lowered the interest coverage ratio (ICR) rates on its buy-to-let mortgages. For landlords remortgaging on a like-for-like basis, the ICR is now 6%, down from 6.5% or the product rate plus 1%, whichever is higher. This applies to products with fixed terms of 5 years or less. For longer product terms, the ICR is now 5.5% down from 6.5%, or the product rate plus 1%, whichever is higher.
For purchase or remortgage with capital raising, the ICR has dropped from 7.5% to 6.5%, or the product rate plus 2%, whichever is higher. This applies to fixed terms of 5 years or less. For products with initial terms of longer than 5 years, the ICR will reduce from 6.5% to 5.5% or the product rate plus 1%, whichever is higher.
The ICR for basic rate taxpayers will remain at 125%, and for higher rate taxpayers will continue to be 145%.
BM Solutions – has reduced rates across their Buy to Let and Let to Buy ranges. 2-year fixed rates now start from 3.78% and 5-year fixed rates start from 4.18%.
Coventry for Intermediaries – has reduced rates across its Buy to Let range by up to 1%. The lender has also reduced its BTL stress rate: 5 Year Fixed rates or higher = 5.5% or the product rate (whichever is higher). 2 & 3Year pound-for-pound remortgages = 5.5% or the product rate + 0.1% (whichever is higher). 2 & 3Year purchases = 7.0% or the product rate +2.0% (whichever is higher).
HSBC – has reduced rates across its Buy to Let range by up to 0.30%.
Virgin Money – has reduced their 50% LTV 2- and 5-year fixed rate products with a £3,995 lender fee. The 2-year fixed rate option has reduced by 0.11% to 4.07% and the 5-year fixed rate option has reduced by 0.10% to 4.10%. Other selected fixed rates have reduced by up to 0.10%.
Precise Mortgages – has reintroduced its Refurbishment BTL range comprising of 2- and 5-year fixed rates which will be available up to 80% LTV of the after works valuation figure.
Skipton for Intermediaries – has reduced some of their Buy to Let stress rates. For products with a fixed term of less than 5 years, the BTL stress rate is reducing from 7.60% to 7.15%. For products with a fixed term of 5 years or more, the BTL stress rate will remain at 6.00%. The rate at which the lender will assess any background BTL properties is reducing from 7.60% to 6.00%.
Clydesdale Bank – has reduced fixed rates by up to 0.50%, with rates now from 4.60%.
Aldermore Bank – has amended their minimum ICR (Interest Cover Ratio) for houses in multiple occupation (HMOs), for individual higher rate taxpayers it has reduced to 160% from 175% (when using surplus personal income, it’s reduced to 135% from 150%).
The Mortgage Lender – has reduced their BTL Ex-Pat product from 6.29% to 5.89% and has also reduced their BTL Holiday Let from 6.59% to 5.99%.
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 www.scottishlandlords.com .
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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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ANY PROPERTY USED AS SECURITY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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