Due to many of the recent changes to buy-to-let mortgages such as the interest relief and the stamp duty charges, many buy-to-let lenders are looking to improve their lending criteria to make it easier for buy-to-let landlords to acquire property.
One of these lenders includes New Street Mortgages; last week this lender announced rate reductions across its buy-to-let mortgage range, with a beating rate of 1.59% at 65% LTV for its 2-year discount product and just 1.94% at 74% LTV.
New Street has also reduced rates on its let-to-buy mortgages, cutting interest rates on all products by 0.5% and offering a 1-year fixed rate of 2.39% at 65% LTV.
Steve Griffiths, director of sales and distribution at The Northview Group, said ‘with all the changes we have recently seen in the buy-to-let market and with more to come, we’re determined to offer brokers deals that offer great value for our customers’.
To accompany the reduction in rates, New Street has also announced changes to its lending criteria, increasing the maximum borrower age from 75 to 80. Furthermore, maximum valuation limits have also been increase to £5m from £2m.
Buy-to-let mortgage rates have been cut on New Street’s fixed rate products as well. The lender’s 2-year fixed rate mortgage has been cut to 1.69% from 1.99% at 65% LTV. Rates on New Street’s 0% fee fixed rate range have also been cut by up to 0.3%.
Steve Griffiths added: ‘The rate reduction position New Street with a competitive range of buy-to-let solutions, offering a rate at 65% LTV that beats anything that is available from the high-street’. He continues to say ‘we are constantly looking to improve our lending criteria to keep in touch with the changing demographic of borrowers, particularly as Britain’s population continues to age. We firmly believe that today’s changes to lending criteria will also open New Street’s proposition to customers seeking to invest in the buy to let market or re-mortgage’.
Meanwhile, other mainstream lenders such as Barclays have launched what they claim to be their best ever range of fixed rates and fee free options for buy-to-let mortgages.
These rates include:
- 2.09% two-year fixed, 75% LTV with a 1% fee
- 2.99% five-year fixed, 75% LTV with a 1% fee
- 2.99% 10-year fixed at 65% LTV with a £2,000 fee
And Fee-free options, including:
- 2.79% two-year fixed (buy-to-let), 75% LTV, £0 fee
- 2.79% (BBBR +2.54%) two-year tracker, 75% LTV, £0 fee
The director of Barclays Mortgages Craig Calder said ‘we are providing greater choice to individual landlord investors across the UK than ever before who are looking to purchase or re-mortgage rental properties’.