A variety of lenders, from Foundation Home Loans and Accord to Yorkshire Building Society and Platform, have fine-tuned their buy to let and residential mortgage products ready for summer transactions.
Foundation Home Loans’ new two-year fixed rate buy to let mortgage will appeal to landlords looking to borrow large sums.
The new product is advertised at a rate of 2.89% and comes with a 1% arrangement fee. The offer is applicable to minimum loan sizes of £200,000 and is available at a rental calculation of 125% x 5.5% notional rate for limited companies and 145% x 5.5% notional rate for individuals.
Individual landlords looking to finance single, self-contained units may be interested to learn that Mortgage Trust’s new five-year fixed rate buy to let loans are available for exactly that.
The new product has a rate of 3.45% up to 75% loan-to-value (LTV) on loans up to £500,000 and up to 70% LTV on loans up to £1m.
Free valuations are available with this product for a limited time, and it has an interest coverage ratio starting at 125% at 4%.
Accord, meanwhile, has refreshed its buy to let product range and is offering new three-year deals, extra cashback, rate cuts and has removed some product fees.
Available to landlords who are looking to purchase is a 2.78% three-year fixed rate mortgage at 75% LTV. The mortgage has a fee of £450 and comes with £300 cashback on completion.
Remortgaging landlords, meanwhile, can access a rate of 2.46% for a three-year fixed rate product at 65% LTV. The mortgage has a product fee of £1,995 as well as a free standard valuation, free legal fees and £250 cashback on completion.
The lender has also reduced rates on existing three-year loans for purchase and remortgage by up to 0.23% and has added an extra £250 cashback for select remortgaging landlords.
For example, landlords looking for 65% and 75% LTV fixed rate mortgages will be given up to £550 cashback on completion.
Similarly, 65% and 75% remortgage products now come with an additional £250 cashback on top of existing incentives.
Select two-year remortgage loans have also had their product fee removed.
The Mortgage Works (TMW) is focusing on the interest cover ratio (ICR) of its buy to let mortgages following the recent changes in tax relief.
The lender has now developed the capability to separate out ICRs for higher and lower rate tax payers and has reduced its ICR from 145% to 125% for those paying zero and the basic rate of tax on their income, so long as they can provide proof of their income.
The maximum annual taxable income for lower rate tax payers is £45,000 in England and Wales and £43,000 in Scotland.
To qualify for TMW’s lower 125% ICR, the borrower’s portfolio, upon completion of the new application, must contain no more than three properties.
As for residential borrowers, as from 19th May they will have access to Yorkshire Building Society’s lowest 95% LTV rate yet.
The product in question is a two-year fixed rate mortgage at 3.25% up to 95% LTV, which the lender says is the lowest on the market.
The deal includes a £995 product fee plus £250 cashback on completion.
Also available from Yorkshire is a 1.97% two-year fix at 90% LTV, available for purchase and remortgage with a £995 product fee and £250 cashback on completion.
Lastly, the Co-operative’s intermediary arm, Platform, has cut the rates on select residential and buy to let mortgages by up to 0.1 percentage points.
The lender’s two-year fixed rate residential loans are now available from 1.09%, while its two-year fixed rate buy to let products start at 1.39%.