Existing five-year fixed rates of 75 per cent LTV have been reduced by 0.4 of a percentage point, while three-year fixed rates of 75 per cent LTV have been cut by 0.15 of a percentage point.
This means on the five-year fixed rate at 75 per cent LTV, a standard property is 5.08 per cent for individual applications, 5.18 per cent on multi-unit freehold blocks and 5.28 per cent on houses in multiple occupation.
For limited company applications, the standard property rate for 75 per cent LTV is now 5.58 per cent, a multi-unit freehold block is 5.68 per cent and an HMO is 5.78 per cent.
The five-year fixed rate at 70 per cent LTV, sees a rate of 4.88 per cent for individual applications, a multi-unit freehold block is 4.98 per cent and an HMO is 5.08 per cent.
For limited company applications, the standard property rate at 70 per cent LTV is 5.38 per cent, a multi-unit freehold block is 5.48 per cent and an HMO is 5.58 per cent.
The three-year fixed rate at 75 per cent is now, for individual applications, 5.08 per cent on a standard property, a multi-unit freehold block is 5.18 per cent and an HMO is 5.28 per cent.
For limited company applications, the rate on a standard property is now 5.58 per cent, a multi-unit freehold block is 5.68 per cent and an HMO is 5.78.
Provider View:
David Whittaker, managing director of Keystone Buy-to-Let Mortgages (pictured right), said: “We’ve worked hard with Aldermore Bank – provider of the funding line – to come up with a stand-out series of five-year fixed-rate products priced below 5 per cent. It makes them really competitive, particularly for landlords who sit outside mainstream buy-to-let lending criteria. The price reductions on the existing fixed-rate products demonstrate how the gap between the three- and five-year cost of funds has narrowed. The new five-year rate is particularly good for investors who like the security of locking in for a longer period of time.”
Adviser View
