Brokers urged to act fast on lower rates
Several specialist lenders have announced rate reductions across their buy-to-let and residential mortgage products, providing brokers and borrowers with more options amid shifting market conditions.
Aldermore has introduced rate cuts across both its BTL and residential owner-occupier ranges for new and existing customers. The reductions, implemented ahead of the Bank of England’s base rate decision, apply to a variety of loan-to-value (LTV) bands and fixed-term options.
For new customers, residential owner-occupier rates have been reduced by up to 0.20%, with rates starting from 5.24% for two-year and five-year fixed products at 80% LTV. In the BTL space, individual and company landlords with single residential investment properties can now access rates from 4.69% on a two-year fixed deal at 75% LTV, a reduction of 0.40%.
Multi-property landlords, including those with houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs), also benefit from cuts of up to 0.40% on two-year fixed deals and up to 0.30% on five-year fixed products.
Existing customers will see rate reductions of up to 0.20% for residential mortgages and up to 0.40% on selected BTL products.
“My message to brokers is simple: don’t wait and act now to secure lower rates for your clients,” said Jon Cooper (pictured left), director of mortgages at Aldermore.
Vida Homeloans has also reduced rates across its residential and BTL product lines, including its product transfer (retention) range. Selected residential and BTL products have been cut by up to 0.30%, while retention products see reductions of up to 0.10%.
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The lender has introduced new BTL limited edition products under its Vida 36 credit tier, featuring five-year fixed rates at 75% LTV with a 7% product fee. These are available for both standard BTL and HMO/multi-unit block purchases.
Vida also has launched new 90% LTV Fee Saver products across all its residential credit tiers, offering two- and five-year fixed terms. These complement the lender’s existing high LTV options for first-time buyers, including its recently introduced 97% LTV “3 & Easy” range.
“Vida’s newest, high LTV products are further assisting customers with affordability, with the aim of helping more people to finally find a place to call home,” said Helen Cawthra (pictured centre), head of intermediary relationships at Vida Homeloans.
Meanwhile, CHL Mortgages has announced significant rate reductions of up to 1.19% across its short-term let BTL range, targeting landlords investing in holiday lets and serviced apartments.
The revised range now includes two-year fixed rates starting at 4.39% and five-year fixed rates from 5.24%, all at 75% LTV. Borrowers can choose from various fee options, including 3.5% and 5% fees on two-year fixes, and 3.5%, 5%, or 7% fees on five-year fixes.
“We believe this rate reduction will support landlords looking to diversify their portfolios and explore other investment opportunities,” said Ross Turrell (pictured right), commercial director at CHL Mortgages. “With people starting to think about their summer holidays, holiday lets and serviced apartments are a great alternative to hotels.”
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