{"id":6095164,"date":"2023-07-28T08:50:25","date_gmt":"2023-07-28T07:50:25","guid":{"rendered":"https:\/\/www.buyassociationgroup.com\/en-gb\/?p=6095164"},"modified":"2023-07-27T17:27:00","modified_gmt":"2023-07-27T16:27:00","slug":"buy-to-let-rates","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/2023\/07\/28\/buy-to-let-rates\/","title":{"rendered":"Several lenders have reduced buy-to-let rates as competition grows"},"content":{"rendered":"

Although borrowing remains considerably more expensive than it was a year ago, buy-to-let rates have begun to show signs of easing.\u00a0<\/strong><\/p>\n

Since the most recent Bank of England base rate rise<\/a>, after an initial spike in rates as well as a drop in product numbers, it seems some stability is beginning to return to the market. Whether interest rates will rise again<\/a> next month remains to be seen, though, and the market remains tough for many borrowers.<\/p>\n

Buy-to-let rates, like mainstream residential, have increased considerably from the lows prior to 2022, and those who fixed onto long-term deals around that time are likely to benefit greatly now until the time comes to remortgage.<\/p>\n

The average buy-to-let mortgage rate<\/a> increased to around 7% this month for a two-year fixed product, while five-year buy-to-let rates are slightly lower now. Across the board, mortgage rates have risen steeply since May, due to disappointing inflation figures.<\/p>\n

With around 60% of all landlords in England holding a buy-to-let mortgage, according to the English Private Landlords survey (or around two million mortgages, according to UK Finance), the rate rises are certain to have an impact on a large proportion of landlords.<\/p>\n

Which buy-to-let rates are falling?<\/h4>\n

Foundation Home Loans<\/strong><\/a> is one of the latest mortgage providers to announce cuts to its buy-to-let rates, reducing them by 0.60% on its core range. Its fixed rates now start from 6.84%, with a loan to value (LTV) of up to 65%. It also has discounted rates from 7.09% on an LTV up to 75%.<\/p>\n

The lender has also broadened its offering by reintroducing two-year fixed rate products for large HMOs<\/a> and short-term lets<\/a>, both of which come with a 1% fee. For an large HMO, the two-year rate is now 7.84%, while for short-term lets it offers 7.94%, both with an LTV of up to 75%.<\/p>\n

Tom Jacob, director of product and marketing at Foundation Home Loans, said: \u201cAs a lender, we\u2019re always looking to be on the front foot when it comes to supporting borrowers and our intermediary partners, and this repricing across our core owner-occupier and buy-to-let product ranges represents a highly positive move in what has been a testing time for a variety of borrowers.”<\/p>\n

Next, specialist lender Keystone Property Finance<\/strong><\/a> has also dropped its buy-to-let rates by up 65 basis points across its range, with the largest reductions being seen on its expat and holiday let products.<\/p>\n

It has also cut its rates for existing borrowers on its variable rates to switch to a fixed rate with minimal fees and a 55bps reduction. The lender has reduced product transfer deals by 50bps, and cut its classic range by up to 40bps.<\/p>\n

David Whittaker, CEO at Keystone Property Finance, said:\u00a0\u201cAs we know, swap rates do go up and down, but we will always endeavour to swiftly pass on cheaper borrowing costs to our brokers and their clients. This is a core principle of our business and one that we will always endeavour to uphold.\u201d<\/p>\n

Landbay<\/strong> <\/a>also announced reductions across its buy-to-let rates of up to 0.70%, with the standard two-year fixed product now starting at 5.49% for 75% LTV. Its ‘like-for-like’ remortgage product is now available at 4.39% for 75% LTV, after a cut off 40bps.<\/p>\n

First-time landlords, trading companies and HMO owners can also benefit from the lender’s new buy-to-let rates, with Rob Stanton, business development director, pointing out that the company is glad to be able to pass on reductions to swap rates “as quickly as possible”.<\/p>\n

Boosting choice in the market<\/h4>\n

Furness Building Society<\/strong><\/a> is another lender that has added a new range of products catering to both the residential and buy-to-let market, as well as short-term and holiday lets. It offers regulated, unregulated and consumer buy-to-let deals for up to 80% LTV, with up to 75% LTV for holiday lets.<\/p>\n

At present, buy-to-let rates start from 6.14% for up to 75% LTV for a two-year fixed rate discount product. It states that applicants will generally be required to achieve gross rents that are at least 125% of the interest charges at the initial pay rate, but all cases will be reviewed based on the customer’s circumstances.<\/p>\n

Alasdair McDonald, head of intermediaries at Furness, said: \u201cWe\u2019re thrilled to be back in the market with this new range of products available across England, Scotland and Wales.<\/p>\n","protected":false},"excerpt":{"rendered":"

Although borrowing remains considerably more expensive than it was a year ago, buy-to-let rates have begun to show signs of easing.\u00a0 Since the most recent Bank of England base rate rise, after an initial spike in rates as well as a drop in product numbers, it seems some stability is beginning to return to the… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":6095172,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26,2],"tags":[22,412,108],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6095164"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=6095164"}],"version-history":[{"count":5,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6095164\/revisions"}],"predecessor-version":[{"id":6095171,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6095164\/revisions\/6095171"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/6095172"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=6095164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=6095164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=6095164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}