Santander has cut fees on its buy-to-let (BTL) products to support investors hit by a recent slowdown in the market.
Two-year fixed rates are now available at 1.44 per cent up to 60 per cent loan-to-value (LTV) and 1.94 per cent up to 75 per cent LTV, both of which come with a £1,495 fee.
The move follows a slowdown in the BTL sector following changes to tax relief and Stamp Duty rates, with the Council of Mortgage Lenders recently cutting its lending forecast from £38bn over the next two years to £35bn in 2017 and £33bn in 2018.
Santander has also cut rates on a range of residential products. Five-year fixes are now available at 1.79 per cent up to 60 per cent LTV and 1.99 per cent up to 70 per cent LTV, both with product fees of £999.
Residential borrowers with a 10 per cent deposit can opt for a two-year fix at 2.54 per cent, which comes with no product fee and is available on purchase and remortgage.
Brad Fordham, managing director of Santander for Intermediaries, said: “The buy-to-let market has slowed in recent months, but appetite for investing in property remains. We hope that by reducing the product fee on our BTL products, we will support this area of the market and help those who want to invest make their ambition become a reality.”
Samuel Mather, director at Wiltshire-based Mather & Murray Financial, commented: “The rates compare well, and it is also good to see they have capped the product charge at a sensible level, because lots of lenders have quite high product charges, which tends to put people off.
“It is a welcome move, but there are still a lot of other factors out there – not just Stamp Duty and tax changes for higher rate taxpayers, but also leaving the EU – which mean there is a lot of uncertainty. It is going to be a difficult 12 months.”
simon.allin@ft.com
