After a long winter, it feels as though spring is just around the corner.
With the worst of the weather hopefully behind us, I’ve taken the opportunity to get outside more and it’s been lovely to see a whole host of spring flowers putting in an appearance.
This surge of activity has been reflected in the market of late as well. We’ve seen general activity levels up across both buy-to-let (BTL) and residential, with the purchase market performing particularly well since the start of the year.
Lenders have been busy too. There have been an exciting number of criteria and rate changes this month and even a new lender launching into the BTL space. With the base rate reducing and further drops anticipated later in the year, we have seen a greater focus on two-year products to support those customers who are after more flexibility than a five-year product provides.
Without further ado, let’s get started on our round-up of some of the changes that have been announced.
Market Moves
Sponsored by Halifax Intermediaries
A flurry of BTL product changes
West One has made some significant improvements to its BTL proposition this month. Alongside rate reductions of up to 45 basis points (bps) on all products, automated valuation models (AVMs) are now available on its limited-edition standard range to 65% loan to value (LTV). This option speeds up cases and saves clients money by removing reliance on third-party valuers. It is available on conventional first charge remortgages only, not bridging or development finance, and applies to standard houses or bungalows, excluding flats and new builds.
Hinckley & Rugby Building Society launched a visa BTL range and expanded lending criteria to make it easier for brokers to place cases and support clients investing in the UK property market. The range includes a two-year discount BTL product at 5.79% up to 75% LTV, a two-year fixed product at 6.1% up to 75% LTV and a five-year fixed product at 5.99% up to 75% LTV.
Product fees for each are £1,249 and interest coverage ratio (ICR) calculations are 125% for basic-rate taxpayers and 145% for higher- and additional-rate taxpayers.
Fleet Mortgages launched two-year tracker products across each of its core ranges – standard, limited company and houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs). The lender anticipates a shorter-term tracker rate appealing to landlord borrowers looking to capitalise on anticipated rate reductions later in the year. For standard and limited company applications, a two-year tracker is priced at bank base rate (BBR) plus 0.49%, while the price for HMOs/MUFBs is BBR plus 0.89%.
Foundation Home Loans launched Property Plus and HMO Plus products, which feature expanded criteria for select properties, consideration of properties above all types of commercial premises and a tailored underwriting process. Both two- and five-year fixed Property Plus products are available in the S2 range from 6.99% with a 2% product fee up to 75% LTV. HMO Plus two- and five-year fixed products start from 7.09% with a 2% product fee up to 75% LTV.
Paragon has released some brand-new reduced two-year fixed rate BTL products featuring a free mortgage valuation. The lender is offering a two-year fixed product at 3.34% for single self-contained properties with an Energy Performance Certificate (EPC) rating of A to C.
It is available up to 70% LTV with a 5% product fee and a £299 application fee.
For HMOs and multi-unit blocks (MUBs), the lender has introduced a two-year fixed product priced at 4.59% up to 75% LTV with a 3% product fee and a £299 application fee. This month has also seen the lender reduce rates on switch and further advance products by up to 46bps.
Allica Bank entered the specialist BTL market, expanding its support for experienced real estate businesses. Products are available for residential property portfolios, HMOs and MUFBs.
Pricing starts from 5.8% for a five-year fixed up to 60% LTV, with discounts available for larger loans or energy-efficient properties.
United Trust Bank (UTB) launched a BTL portal for product transfers to make it easier for brokers to quickly secure deals for their landlord customers. Brokers log in to the portal and complete a short product transfer enquiry form, and UTB will then let the broker know available products. Illustration and offer will be issued within 24 hours.
Aldermore has announced two-year fixed limited-edition products for landlords in what it describes as “an increasingly competitive rate environment”.
For single residential investment properties, a two-year fixed rate of 4.59% is available (4.49% with an EPC rating of A to C) up to 75% LTV with a 3% fee. A multi-property product is available priced at 4.54% up to 75% LTV with a 3% fee.
Select rate reductions
Zephyr Homeloans gave everyone a Valentine’s Day treat by reducing all its fixed rates by up to 36bps. Rates for standard properties with an EPC of A to C now start from 3.14% for a two-year fixed (up to 65% LTV with a 7% fee) and from 4.69% for a five-year fixed (up to 65% LTV with a 7% fee).
In an additional update for portfolio cases, the £200 application fee now only applies to the first property as long as all further property applications are submitted within six weeks.
MT Finance reduced rates by up to 0.5%. The change includes its recently launched Tier 2 range. Available for individual and corporate borrowers, standard Tier 1 BTL products now start at 3.19% for a two-year fixed up to 75% LTV with a 7% fee and at 3.89% for the equivalent Tier 2 product.
And finally, Landbay has announced rate cuts across its range of up to 0.4%. The update sees rates in the large HMO/MUFB range start from 5.89% for a five-year fixed up to 75% LTV with a 5% product fee. Small HMO products up to 80% LTV have been reduced by up to 0.3% and now start from 6.59% with a 3% product fee.
