Accord Mortgages, the intermediary lending brand of the Yorkshire Building Society, has cut the rates on its two and five-year buy-to-let mortgages.
Effective from today (25 April), the rates of 17 products across its buy-to-let range have been cut for those seeking a mortgage at 75 per cent loan-to-value, the lender announced in a broker update.
In a separate media statement, the lender confirmed it had revised its range to include a fee-free two-year fixed rate product at 2.62 per cent, and a five-year fixed rate product at 2.69 per cent with a £1,495 fee.
Both products offer landlords the option of either a free standard valuation with free legal fees, or £500 cashback on completion of the deal and free standard valuation. The option of £500 cashback is only available to landlords purchasing a new property.
Chris Maggs, commercial manager at Accord Buy-to-let, explained two-year products had recently been the term of choice for many customers, but added the lender had witnessed an increase in the popularity of five-year deals of late due to landlords wishing to "fix for longer during the uncertain times ahead."
He said: "We wanted to ensure that we have a number of attractive offerings available at both two and five years so landlords, with the help of a broker, can weigh up the best way forward for their portfolio.
"With a potential Bank rate rise looming, landlords may be savvy by plumping for a longer-term deal, which could save them money in the long run.
"However, a shorter term will provide flexibility to react quickly should the market change over the next couple of years."
While rates in the fixed rate owner-occupier mortgage market have been creeping up in recent weeks, those in the buy-to-let market have continued to nudge downwards amid fierce competition, according to intermediaries.
David Hollingworth, associate director of Bath-based L&C Mortgages, said Accord's decision to reduce rates showed a desire to remain competitive in a price sensitive market.
He said: "Buy-to-let is quite different to owner occupier mortgages right now. Lenders are still competing for business in both, but are trimming rates in the buy-to-let market.
"Accord is a lender that is prepared to tweak products if it feels that the range isn't achieving what it should. Because the market is so competitive, lenders are having to revisit rates, as the market can shift quite rapidly."
Mr Hollingworth said other lenders currently keen to compete for this kind of business include Virgin Money, Platform, Barclays, Santander and Coventry Building Society.
He said: "Lenders can't afford to be too far from the top of the list at any given point in time."
