The launch includes fixed rates over a range of terms and a 75 per cent loan-to-value starting from 2.99 per cent.
Mortgage Trust’s products include terms from two, three and five years, with fixed fee options. It also has remortgage options on longer-term fixed rates.
The deals include a 2.99 per cent three-year fixed rate at 75 per cent LTV with a product fee of 2.25 per cent, or for a £995 product fee a two-year 75 per cent LTV at 3.65 per cent.
Both these are for purchase and remortgage.
Other three-year products include a 3.79 per cent deal with a fee of £495, and a 3.95 per cent deal with no product fee, both available for purchase and remortgage.
The four-year fixed rates include a 4.09 per cent loan with a fee of £995 for purchase and remortgage and a 4.39 per cent loan with no fee for remortgage only.
There are two five-year deals, also available at 75 per cent LTV – a 4.49 per cent loan for purchase and remortgage, and a 4.65 per cent loan for remortgage, both with a fee of £1,495.
Mortgage Trust said the range complements its two-year tracker products at 75 per cent LTV, which start from 2.89 per cent, and 80 per cent LTV, starting at 3.95 per cent.
The Mortgage Trust has followed other lenders in reducing its BTL fixed rates.
In September Skipton reduced selected BTL fixed rates by up to 0.25 of a percentage point and included high fee options to 75 per cent over each fixed-term, two-, three-, five- and seven-year loans.
It also increased its BTL procuration fees by 15 basis points from 0.35 per cent to 0.50 per cent for BTL cases from 17 September.
Mortgage Trust is a sister brand to Paragon Mortgages which provides lending solutions designed to meet the needs of professional landlords with more complex requirements.
Reactions
Provider view:
Moray Hulme, head of sales at Mortgage Trust, said: “With the potential for interest rate rises still a hot topic, landlords could be more likely to purchase fixed-rate products to maintain that level of certainty.
“Mortgage Trust has enhanced its competitive product range, which we anticipate will generate interest among small-scale landlords who are looking to invest in straightforward rental properties.”
Adviser view:
Danny Cox, an adviser with Hargreaves Lansdown in Bristol said: “Now could be a good time for buy-to-let landlords to fix their rates, given that interest rate rises will probably be within the next 12 months.
“It’s important to choose the term of the fixed-rate carefully, as a further fix during a period of rising rates is unlikely to be as attractive. At this stage I would consider a longer rather than shorter fix to negate this risk.”
Charges: Some mortgages have no fee, while others range from 2.25 per cent to £2,995. There is also an application fee of £150.
Verdict:
While the Bank of England bides its time before making a decision to raise rates, lenders, it seems, are rushing to jump on the bandwaggon to give borrowers some security by fixing their home loans before the inevitable increase. Property investors with multiple buy-to-let properties in their portfolio will no doubt welcome Mortgage Trust’s decision.
