Buy-to-let market update – August 2023
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 31/07/2023.
Buy-to-let market update: –
Leeds Building Society – has launched a new range of buy-to-let products for limited company applications. The new products include two- and five-year fixed rate mortgages at both 75 per cent and 80 per cent loan to value (LTV).
The lender has also updated their stress rates for standard buy-to-let mortgages. Less than five-year product term for purchase and capital raising remortgages will be stressed at product rate + 2 per cent (min 5.50 per cent). Less than five-year product term for like for like remortgages will be stressed at product rate (min 5 per cent). More than five-year product terms will be stressed at product rate + 1 per cent (min 5.50 per cent).
Coventry for intermediaries – has reduced rates on all their two- and five-year fixed rate buy-to-let and portfolio landlord products. Buy-to-let products are reducing by between 0.39 per cent and 0.74 per cent. The lender has increased the whole portfolio reference rate for portfolio landlords to 6.5 per cent.
Skipton Building Society – has altered the stress rate for products with a fixed term of less than five years, from 7.56 per cent to 8.14 per cent. For products with a fixed term of five years or more, the buy-to-let stress rate remains at 6.29 per cent.
Paragon Bank – has launched new limited edition buy-to-let portfolio products. Fixed rates start from 5.75 per cent. There is a choice of products, including some with fixed product fees and no application fees. All products currently benefit from free valuations.
Santander for intermediaries – has increased selected buy-to-let fixed rates by between 0.05 per cent and 0.29 per cent. The lender has also withdrawn their buy-to-let larger loan intermediary exclusive rates. At the same time the lender has launched new 60 per cent LTV two- and five-year buy-to-let remortgage and purchase fixed rates.
Virgin Money – will now accept applications from portfolio landlords where the only source of income is from your property portfolio. The lender will consider like for like remortgages, purchases, and remortgages with additional lending.
Precise Mortgages – has launched new limited edition buy-to-let products. Two fixed rates start from 4.69 per cent with five-year fixed rates starting from 5.69 per cent. The products are available for both individual and limited company applications.
NatWest intermediary solutions – has changed their buy-to-let stress rates. For two-year fixed products the stress rate is increasing from 8.1 per cent to 8.6 per cent. For five-year fixed products the stress rate is increasing from 6.89 per cent to 7 per cent. For like-for-like remortgages the stress rate is increasing – increase 7.54 per cent to 8.21 per cent.
Aldermore Bank – has launched a limited edition buy-to-let range. For individual and company landlords with single residential investment properties. The limited edition five-year fixed has a 1.50 per cent lender fee and is fixed at 6.69 per cent which is available up to 75 per cent LTV. A limited edition five-year fixed is also available, with a 3.00 per cent lender fee, at 6.39 per cent to 75 per cent LTV.
The lender has also launched multi-property limited edition products for individual and company landlords with residential investment properties. The limited edition five-year fixed has a 1.50 per cent lender fee and is fixed at 6.59 per cent to 75 per cent LTV. A limited edition five-year fixed is also available, with a 3.00 per cent lender fee, at 6.29 per cent to 75 per cent LTV.
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 .
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.
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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