Lenders compete for investors with slashed buy to let rates

A slew of lenders have slashed rates on their buy to let mortgage products in recent days as competition hots up to win investor clients.

Zephyr Homeloans is for the first time offering 80% LTV mortgage products on five-year fixes for HMOs and multi-unit freehold blocks (MUFBs).
 
The lender said that it is offering the following for properties with an A to C-rated energy performance certificate (EPC) 5.99% on a five-year, fixed rate for HMOs and MUFBs with up to 80% LTV, with a 3% fee; and 6.59% on a five-year, fixed rate for HMOs and MUFBs with up to 80% LTV, with a 0% fee.
 
For properties with an EPC rating of D or E, Zephyr is offering 6.09% on a five-year, fixed rate for HMOs and MUFBs with up to 80% LTV, with a 3% fee; and 6.69% on a five-year, fixed rate for HMOs and MUFBs with up to 80% LTV, with a 0% fee
 
Landlords can also add the mortgage arrangement fees to the loan balance up to a maximum LTV of 83%.

Specialist lender CHL Mortgages has launched a limited-edition range of two- and five-year fixed rate buy to let products.

The new range features two-year fixed rates starting from 3.95% and five-year fixed rates starting from 4.99%.

The range targets individual, limited company and HMO/MUFB landlords: all products are available up to 75% LTV, with a choice of a 2% or 5% fee.

And Molo Finance has made further rate cuts to its UK resident buy to let fixed-rate products.

The lender’s BTL rates now start from 4.55% for a two-year fixed for both individual and limited companies up to 75% loan to value, which is a 0.17% reduction. Its five-year fixed rates for the standard range begin at 5.06%, equating to a 0.15% reduction.

Product rates for HMOs, multi-unit freehold blocks, new builds and investor-led properties now start from 4.65% for a two-year fixed product and 5.16% for a five-year fixed.

Meanwhile Fleet Mortgages has introduced a series of rate cuts and launched two five-year, 75% LTV fixes for both standard and limited company landlord borrowers.

The lender made a 0.20% reduction to its standard 75% LTV five-year fix for individual landlord borrowers, with a new rate of 5.14% from 5.34%, plus a 0.35% reduction for the same product for limited company borrowers, also now available at a rate of 5.14%, down from 5.49%. Both products come with a 3% fee, at a minimum of £750.

The two products are available at 75% LTV for both standard and limited company borrowers, and priced at 5.69% and come with a fixed fee of £3,999. The maximum loan available is £500,000, and the end date for the products is 31st October 2029. Both products come with a rental calculation of 125% at 5.69% for basic tax payers and 145% at 5.69% for higher rate tax payers.

Free valuations are available for properties valued up to £500,000, and are discounted for values above this.