Kent Reliance has slashed interest rates across its buy-to-let mortgage range, launching its lowest-ever rate of 2.99 per cent.
Borrowers opting for the lender's discount product will benefit from rates of 2.99 per cent on a 65 per cent loan-to-value (LTV), down from the previous rate of 3.34 per cent.
Rates on a two-year fixed rate at 65 per cent LTV have been cut from 3.79 per cent to 3.19 per cent, while three-year fixed rates are being offered at 3.39 per cent.
The price reductions across the two and three-year products of their specialist range apply to limited company lending, house in multiple occupation (HMOs) and multiple flats under one freehold and supplement the recent changes made to five-year fixed pricing.
The lender’s move follows a series of buy-to-let price reductions by other lenders as changes to tax and regulation begin to squeeze the market.
In January, Barclays unveiled its ‘best-ever’ buy-to-let rates of 2.99 per cent at 75 per cent loan-to-value, and smaller lenders such as Saffron and Vida Homeloans have recently followed suit.
Adrian Moloney, sales director at parent company OneSavings Bank, said: “As tax and regulatory changes continue to impact the market, specialist lenders need to adapt quickly to support these changes.
“These rate reductions are in direct response to the feedback received from our brokers who are actively seeking products for the increasingly evolving landlord market.”
Nick Green, broker at Alternative Estates and Financial Services, said: “Kent Reliance is a specialist lender so to bring the rates down like that gets them noticed more in the market.
“I use Kent Reliance, so it is very welcome to get them well-known.
“The biggest problem we are having now with buy-to-let is affordability. The rates themselves are very good, but really we have to be looking at product transfers."
simon.allin@ft.com
