Mortgages  

Buy-to-let rate reductions show landlord lustre

Buy-to-let rate reductions show landlord lustre

The Co-operative Bank’s intermediary lender Platform features strongly in FTAdviser’s table of mortgage changes this week, reducing buy-to-let mortgage rates by up to 0.25 per cent across two, three and five-year durations and at loan-to-values of up to 75 per cent.

The deals for brokers come with a range of options, including fee free or with cashbacks up to £500. Stuart Beattie, head of mortgages at Platform, said that their buy-to-let deals continue to prove popular with intermediaries.

Elsewhere, TBMC launched two new buy-to-let fixed rate mortgages with Mortgage Trust, available up to 80 per cent LTV with a free valuation for purchases and remortgages.

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Andy Young, chief executive at TBMC, stated: “There is more intense competition in the buy-to-let mortgage market at the moment and it is great to see Mortgage Trust offering such keenly priced rates at higher levels of lending.”

Buy-to-let mortgages are currently an area of growth in a market that is otherwise witnessing modest declines, emphasising the lure of landlord mortgages and leading to suggestions that newly liberated pensioners might seek to move into property.

Meanwhile, both Halifax and Lloyds took the scalpel to their homemover and first time buyer two-year fixed rate mortgages.

Leeds Building Society came to market with just one new deal, cutting the rate of its five-year fix at 80 per cent loan-to-value. General manager for business development Martin Richardson commented that with mortgage rates so low right now, more borrowers are prepared to consider a five year fix where previously they might have favoured a shorter term.

“The low fee package on this five year deal also offers remortgagers the opportunity to lock in to a lower rate than they have at present with minimal charges up-front,” he added.

Here are all the rates that were publicly announced this week:

LenderLTV/typeHeadline rateProduct fee
Platform60%/2-year fixed2.39% (BTL)£1,999
Platform60%/2-year fixed2.59% (BTL)£999
Platform60%/2-year fixed3.09% (BTL)£0
Platform60%/3-year fixed2.84% (BTL)£1,999
Platform60%/3-year fixed3.09% (BTL) £999
Platform60%/3-year fixed3.74% (BTL)£0
Platform60%/5-year fixed3.54% (BTL)£1,999
Platform60%/5-year fixed3.74% (BTL)£999
Platform60%/5-year fixed4.19% (BTL)£0
Platform65%/2-year fixed2.64% (BTL)£1,999
Platform65%/2-year fixed2.89% (BTL)£999
Platform65%/2-year fixed3.29% (BTL)£0
Platform65%/3-year fixed2.99% (BTL)£1,999
Platform65%/3-year fixed3.24% (BTL)£999
Platform65%/3-year fixed3.89% (BTL)£0
Platform65%/5-year fixed3.69% (BTL)£1,999
Platform65%/5-year fixed3.89% (BTL)£999
Platform65%/5-year fixed4.29% (BTL)£0
Platform75%/2-year fixed2.99% (BTL)£1,999
Platform75%/2-year fixed3.24% (BTL)£999
Lloyds Bank60-75%/2-year fixed2.34% (Remortgage)£0 (Club Lloyds)
Leeds Building Society80%/5-year fixed2.99%£199
TBMC80%/2-year fixed3.00%2.50% completion fee
TBMC80%/2-year fixed3.25%£2495 completion fee
Lloyds Bank75-85%/2-year fixed2.74% (Homemover)£995 (Club Lloyds)
Lloyds Bank75-85%/2-year fixed2.29% (First time buyer)£995 (Club Lloyds)
Halifax75-85%/2-year fixed2.69% (First time buyer)£495
Halifax75-85%/2-year fixed2.74% (Homemover)£495

peter.walker@ft.com