In a move to invigorate the property investment landscape, several lenders have significantly reduced their buy-to-let mortgage rates, signalling positive news for investors. These strategic adjustments aim to attract business and present an enticing scenario for those venturing into the buy-to-let arena. Lenders Leading the Way:
LendInvest Mortgages:
- Slashed buy-to-let rates by up to 0.80%, demonstrating a commitment to supporting landlords.
- Offers specialist support for complex BTLs, catering to large HMOs and Multi-Unit Freehold Blocks.
- Focuses on providing tailored assistance for portfolio and limited company landlords.
- CHL Mortgages:
- Fixed CHL 1 BTL product range rates were lowered by up to 0.65%.
- The product is designed for customers with a clean credit history, catering to both individuals and companies.
- Encompasses standard BTL and Small HMO/MUFB product types.
Kensington Mortgages:
- Extends a minimum £250 cashback offer on all residential and buy-to-let mortgages, including limited company products, until the end of January.
- Implements rate reductions of up to 0.75% on selected residential options, enhancing affordability for borrowers.
Foundation Home Loans:
- Introduces a limited edition five-year fixed-rate product, suitable for both purchase and remortgage purposes.
- Features a headline rate of 5.64% up to 75% loan-to-value with a 1.50% fee.
- December repricing of selected products includes rate reductions of up to 0.20%, further sweetening the deal.
Shawbrook:
- Expands its buy-to-let offering with a new, limited edition five-year fixed-rate product.
- Available on loans ranging from £150,000 to £25m, presenting a 0.50% reduction on the standard five-year fixed product up to 75% LTV.
- Rates start from 6.09%, offering an attractive proposition for investors.
Market Dynamics:
- The mortgage market witnesses increased competitiveness, with lenders engaging in a visible price war.
- Rates have experienced a notable decrease of around one percentage point since their peak, creating a more favourable environment for borrowers.
- Average two-year fixed and five-year fixed rates have reached their lowest levels since June 2023, as independent mortgage market monitor Moneyfacts reported.
As we navigate the evolving mortgage landscape, these rate reductions usher in a new era of affordability and accessibility for property investors. The market's resilience and competitiveness pave the way for a vibrant 2024, providing a golden opportunity for those seeking to enhance their property portfolios.