Vida cuts buy-to-let mortgage rates

Vida cuts buy-to-let mortgage rates

Vida Homeloans has cut rates on its buy-to-let (BTL) mortgages by up to 0.6 per cent and reduced revert rates across its product range.

The move means the specialist lender is now offering two-year tracker rates from 3.24 per cent, two-year fixed rates from 3.34 per cent and five-year fixed rates from 3.89 per cent.

The rates apply to all individual, limited company and house of multiple occupation applications (HMOs).

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Louisa Sedgwick, director of sales – mortgages for Vida, said: “We have quickly established ourselves as a lender with an appetite for specialist residential and buy-to-let business, and these changes should ensure that we remain very competitive in this important segment of the buy-to-let market. 

“We already had some great criteria in areas such as limited companies and special-purpose vehicles, flats above commercial premises and HMOs up to eight bedrooms. Now we have even more competitive pricing too.”

The move was welcomed by Stuart Gregory, managing director at Hampshire-based Lentune Mortgage Consultancy.

He said: “At the moment, buy-to-let lenders are having to be a lot more innovative in their offering, certainly since the stamp duty changes came into effect, which has had a massive impact on the market.

“There has certainly been a downturn in enquiries- we have had one enquiry since last April. It has had the effect that (former chancellor) George Osborne wanted where it has cooled down the market, and it has encouraged a few first-time buyers to test the market.

"But I think for lenders in particular they are going to have to keep on refreshing their offering.”