Vida Homeloans re-enters fixed rate market

Vida Homeloans re-enters fixed rate market

Specialist lender, Vida has brought a range of residential and buy-to-let fixed rate products back to market following on from its recent relaunch of variable products.

Brought to market today (October 25), the residential range is available for both first time buyers and home movers as well as remortgages, including capital raising for debt consolidation.

The lender was forced to withdraw all of its fixed-rate buy-to-let products at the end of September, following the government’s “mini” Budget which sent gilt yields soaring and plunged the mortgage market into turmoil.

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With maximum loan sizes of up to £2mn, the lender’s new residential rates start at 8.09 per cent for a two-year and 7.69 per cent across a five-year term.

Loan to value options are 75 per cent and 85 per cent, and are available across all adverse tiers, meaning the products are suitable for those who may have missed payments in recent years.

The lender’s buy-to-let range is available to a maximum of £1mn with two and five-year rates starting at 7.49 per cent and loan to value up to 80 per cent, or 75 per cent for expats.

Vida has said the buy-to-let range includes products for both amateur and professional landlords, those wanting to purchase or remortgage houses in multiple occupation and multi-unit blocks, and expats in a wide range of countries across the world. 

While many lenders have begun relaunching fixed-products on the market, the future outlook still remains uncertain. 

In a note yesterday (October 24) by Morgan Stanley, analysts said that UK mortgage repricing to around 6 per cent rates, versus back books with deals of around 2 per cent, is a “significant reset” for both banks and borrowers.

It warned that with higher utility bills, a 6 per cent mortgage rate could mean that 30-40 per cent of UK households will struggle to pay their mortgage.

Elsewhere in the mortgage market, first-time buyers have seen the amount they can borrow dip by as much as 30 per cent, as banks have tightened their mortgage affordability calculators in the face of what have been rapidly rising rates.