More lenders lower their buy to let mortgage rates

Landlords looking for energy-efficient buy to let mortgages have a new option from Fleet Mortgages – one of several to drop BTL rates this week.

The specialist lender has launched a range of two-year fixed-rate deals specifically for properties with high Energy Performance Certificate (EPC) ratings.

This follows its successful relaunch of five-year EPC A-C mortgages last week.

Both options offer competitive rates, with the two-year deals starting at 4.59% for standard and limited company properties, and 4.89% for HMO/multi-unit blocks (MUB).

All EPC A-C products come with a fee of 3%.

EPCs are going to be raised to C

Fleet’s chief commercial officer, Steve Cox, said: “As we know, the minimum standards for EPCs are going to be raised to C and above by 2030, which might sound like a long time away, but the sooner the property is at this level, the sooner the landlord borrower can benefit from these discounted product rates.

“This whole issue, and the responsibilities landlords now have in this area, provide advisers with an opportunity to communicate with their landlord clients and to outline how they can help deliver the necessary solutions.”

Fleet Mortgages is also encouraging energy efficiency by offering a £1,000 cashback to landlords who improve their property’s EPC rating during the fixed-rate period.

Buy to Let by Foundation unveils BTL rate cuts

Buy to Let by Foundation, which is part of Foundation Home Loans has announced rate cuts up to 0.5% on its core range, with rates starting from 5.29%.

The cuts apply across all three borrower tiers: F1 for clients with clean credit, F2 for those financing specialist properties or with minor credit issues, and F3 for clients with more recent credit challenges.

The product highlights:

• F1 and F2 two- and five-year fixed-rates: Reduced by up to 0.35%, now available from 5.29% (1.5% fee) up to 80% LTV
• F2 Holiday Lets: Two- and five-year fixed-rates now available up to 75% LTV, from 6.19% (2% fee)
• F2 HMO Limited Edition: Five-year fixed-rate now available at 5.74% with a reduced £2,995 fee (previously £4,995) up to 75% LTV
• F1 ERC3: Five-year fixed rate with ERCs for the first three years, reduced by 0.20%, now 5.79% (1% fee) up to 75% LTV
• F1 and F2 Green Fee-Assisted: Five-year fixed rates reduced by up to 0.20%, now available from 5.44% (1.25% fee) up to 75% LTV.

Buy to let product offering

The lender’s director of product and marketing, Tom Jacob, said: “These rate cuts to our core buy to let product offering cover all our borrower tiers and vast array of the many product options we offer, including limited edition mortgages, and sector-specific ones such as HMOs, holiday lets and short-term lets.

“These rate cuts are significant, up to 50 basis points in some cases, and we have also made fee reductions, notably on our HMO Limited Edition five-year fix which has been cut by £2,000.

“Overall, we believe this is a highly competitive buy to let product range with a wide variety of options available to all kinds of landlord borrowers.”

The Mortgage Works also cuts its BTL rates

The Mortgage Works (TMW) has announced rate cuts of up to 0.35 percentage points across its buy to let products for new customers. Rates now start from 3.49%.

The reduced rates include:

• Five-year fixed rate (purchase and remortgage): 3.69% with a 3% fee, available up to 65% LTV (reduced by 0.10%)
• Two-year fixed rate (purchase and remortgage): 3.99% with a £3,995 fee, available up to 65% LTV (reduced by 0.35%)
• Five-year fixed rate (purchase and remortgage): 3.99% with a £3,995 fee, available up to 65% LTV (reduced by 0.15%).

Joe Avarne, the senior manager of buy to let mortgages at TMW, said: ”With rates starting from 3.49%, these latest reductions from The Mortgage Works will help widen market access for buy to let investors.”

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