Mortgages 

Platform reacts to demand with buy-to-let rate cuts

Platform reacts to demand with buy-to-let rate cuts

Platform has reduced rates on its buy-to-let mortgage range.

The Co-operative Bank’s intermediary lender has cut up to 0.15 per cent off fixed buy-to-let deals and up to 0.10 per cent off buy-to-let trackers again at 70 and 75 per cent loan-to-value.

Highlights include a five-year fix for 3.89 per cent at 70 per cent LTV and a five-year fix for 3.99 per cent at 75 per cent LTV, both with no fee.

Two-year trackers come at a rate of 2.24 per cent at 70 per cent LTV and 2.34 per cent at 75 per cent LTV, both with a £1,999.

Some two-year fixed and five-year fixed buy-to-let mortgages have also been reduced by between 0.05 and 0.10 per cent in both the 70 per cent and 75 per cent LTV bands.

Head of mortgages Stuart Beattie stated the changes were in response to continued demand for buy-to-let mortgages.

“Supporting brokers and growing our mortgage business is a key part of our strategy and we remain committed to offering competitive deals, providing great quality products and services, to both brokers and their clients.”

Platform also offers buy-to-let rates on mortgages up to 60 and 65 per cent LTV, all of which come with free legals for remortgagers.

A cashback of £250 or £500 is also available on selected rates and the maximum loan value is £350,000.

Lea Karasavvas, managing director at Prolific Mortgage Finance, said Platform has continually sourced well this year and with a competitive stress test on their buy-to-let deals complementing these rate enhancements, they are set to steal yet more market share from others.

“Their reduction in rate is a welcome, positive move in a sector of the market that has taken a bit of a hit of late,” he stated.

“With the forthcoming changes to income tax on rental income and also the uncertainty surrounding Brexit, the five-year deal in particular could provide budgetary certainty for those looking to exit the market in a few years time and not knowing what impact an exit from the EU would have upon interest rates.”

Despite, or perhaps because, of the 3 per cent increase in stamp duty for buy-to-let landlords at the start of April, several lenders reduced rates across their ranges in May.

Kensington Mortgages cut rates and product charges on buy-to-let mortgages for landlords with a 10 and 20 per cent deposit, while Virgin Money reduced its buy-to-let two-year fix at 60 per cent LTV to 1.89 per cent, the three-year fix at 75 per cent LTV to 2.89 per cent and the five-year fix at 70 per cent LTV to 3.19 per cent.

peter.walker@ft.com

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