Two-year First National fixed rates have been reduced by up to 0.85 per cent, while three-year First National fixes have dropped by 0.75 per cent.
“The move to reduce rates across the First National BTL range further demonstrates GE Money Home Lending’s response to the sustained growth in this sector," said Gerry Bell, head of mortgage marketing at GEMHL.
"Despite concerns surrounding the global credit crunch, consumer demand remains strong for BTL products as we continue to see demand for rental properties together with the requirement for long-term investment opportunities. It is important that lenders continue to work with brokers to offer affordable and competitive products.”
Growth in the buy-to-let market over the last decade has seen a ten-fold increase with an estimated £35bn gross advances in 2006 alone. GE Money Home Lending, as part of its ongoing drive to diversify its portfolio, has worked with its packagers to meet their increasing customer demands in this sector.
Research by GE Money Home Lending suggests almost a quarter of all UK mortgage brokers claim the uncertainty caused as a result of the recent turmoil in international markets has negatively affected their business. It is vitally important in the current market place that lenders continue to support brokers by offering products that are affordable, competitive and reflect consumer demand.
Bell continued: “I am sure that the new rate cuts across our BTL range will be welcomed by the market at a time when some lenders are increasing rates. It will also be well received by customers who are coming to the end of their present fixed rate deal and are looking for a good value deal at a time when many are concerned about rates.”
Changes include:
- 3 year fixed rates from 5.84% at 120% rental cover
- 5 year fixed rates from 6.29% at 100% rental cover
- Tracker rates from 7.44% at 120% rental cover
- Low completion fee now £899
- Minimum age now 30 years old
