Mortgages  

InterBay reduces buy-to-let and HMO rates

InterBay reduces buy-to-let and HMO rates

InterBay Commercial has cut rates for its entire range of buy-to-let and house in multiple occupation deals.

Variable rates will now start from 4.2 per cent while five-year fixed rates, which are stress-tested at pay rate, will start from 4.4 per cent.

Buy-to-let and HMO loans of more than 75 per cent loan-to-value (LTV) will now be available up to £1m.

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Margin (%)

Loan size

Rate (%)

65% LTV

75% LTV

85% LTV

£100K - £500k

3 month LIBOR + margin of 0.75%

4.10

4.20

4.65

Above £500k

3 month LIBOR + margin of 0.75%

3.45

3.60

4.25*†

 

Darrell Walker, head of second charge and commercial lending at OneSavings Bank, owner of Interbay. said: “These changes complement the improvements we have been steadily making to our offering throughout the year, matching changing market needs, and will ensure we are at the forefront of our brokers’ minds.”

IFA Verdict

Michael O’Brien, director of Access Financial Services, said Interbay was clearly looking to support buy-to-let and HMO in a market that is facing increasingly tough regulation from the Prudential Regulation Authority.

Back in March, the Prudential Regulation Authority published a consultation on proposals regarding minimum standards that lenders should meet when underwriting buy-to-let contracts.

Mr O’Brien said: “It is good to see Interbay coming back into the market with more competitive deals.”

emma.hughes@ft.com