National Counties Building Society has cut interest rates on its three and five-year variable rate loans with immediate effect.
The changes come following a review of its buy-to-let range and include a 2.5 per cent discount for three years – a new pay rate of 3.04 per cent, from 3.14 per cent - and a 2.2 per cent discount for five years – with a new pay rate of 3.34 per cent, from 3.54 per cent.
In addition to increasing its discounts, National Counties has added limited company lending to its proposition across buy-to-let products.
The society accepts limited companies with a maximum of eight directors, with a minimum loan amount of £75,000 and a product fee calculated at 1.5 per cent of the value of the loan.
During the first quarter, as the stamp duty increase on second homes loomed, many landlords started down the limited company route, although so far it has mostly been more specialist lenders which have accepted these vehicles.
In addition, procuration fees for all buy-to-let products have recently been increased to 0.5 per cent, up from 0.35 per cent.
Cammy Amaira, head of intermediary sales at National Counties, said as changes in tax and legislation impact on the sector, products have been adapted to suit investors’ needs.
“We have listened to what the brokers are telling us and the improvements we have announced reflect these views,” he stated.
“As the market for incorporated investors grows, we have added greater flexibility and have rewarded brokers with higher proc fees, which reflect the complexity of casework they have to handle.”
Separately, buy-to-let mortgage specialist TBMC has launched a new buy-to-let two-year variable rate product with Axis Bank, available for limited companies, HMOs, expats and student lets.
The initial rate is 3.69 per cent, up to 75 per cent loan-to-value, with a 1.5 per cent completion fee.
Jane Simpson, managing director at TBMC, said the rate is especially competitive in niche areas of the buy-to-let market.
She said: “At TBMC we are seeing a steady demand for limited company and HMO buy-to-let mortgages and this product stacks up well against other rates that are available in this specialist area.
“It has a rental calculation of 125 per cent at 5 per cent, which is appealing in today’s environment of rising rent stress tests and there are no early repayment charges.”
peter.walker@ft.com
