Raft of lenders offer new rates and incentives

A range of new rates and other incentives have been launched by a raft of lenders, including new two-year fixed buy to let rates for limited companies from Aldermore and an ‘HMO hybrid’ valuation option from Shawbrook, for houses in multiple occupations (HMOs) valued at less than £1m.

Aldermore is introducing a new range of two-year fixed rates for limited company buy to let mortgages on single residential units.

The rates include a 4.48%(4.6% APR) to 75% loan to value (LTV) deal, with a £1,999 product fee, or a rate of 4.98%(5.6% APR) to 75% LTV, with no fee.

Also on offer is a rate of 4.98%(5.8% APR) to 80 per cent LTV, with a £1,999 product fee, or a rate of 5.48%(5.7% APR) to 80% LTV, with no fee.

In addition, Aldermore has reduced is two-year fixed rates for limited companies by 0.20% and has reduced its standard two-year fixes for individual landlords by 0.10%.

For example, its two-year fixed rate of 4.18%( for a limited company buy to let loan at 75% LTV has been cut from 4.18%(5.6% APR) to 3.98%(5.2% APR), with a 2% product fee.

As for Aldermore’s new standard buy to let two-year rates, these now start at 3.38%(5.2% APR) to 75% LTV, with a 2% product fee. Other deals include rates of 3.88% to 75% LTV, with £1,999 product fee, and 4.38% to 75% LTV with no fee. The lender’s range of 80% LTV deals has also been reduced.

Shawbrook Bank’s commercial mortgages division has launched an ‘HMO hybrid’ valuation option for HMOs valued at less than £1m.

The new service level agreement will be set at seven days, which is three days quicker than the bank’s previous valuation time, and will be less expensive.

David Morris, head of credit at Shawbrook commercial mortgages, said:

“We have been working closely with our valuation panel at Appraisers UK recently in an effort to clarify the valuation of HMO properties and improve the service that customers receive.

“The new HMO Hybrid option will also result in significant cost benefits and time-savings for our brokers’ clients. It forms part of our ongoing commitment to improving our service proposition, and we will continue to work side-by-side with our partners to provide an ever more efficient offering in 2017.”

Meanwhile, 3mc has confirmed that Kensington has cut its specialist distributor rates by nearly 0.55%.

The rates will apply to residential mortgages of up to 90% and buy to let deals for HMOs and multiple properties registered on a single title, and will be available via selected packagers.

Doug Hall, Director of 3mc, said:

“These exclusive packaged products not only give brokers access to very competitively priced higher LTV deals, but also specialist solutions for landlords wanting to finance HMOs and multi-units on one title. I’m sure both will prove to be very popular with both brokers and their clients.”

Newcastle Building Society is expanding its ‘All in One’ Help to Buy range, following its entry into the market in December last year.

The new Help to Buy ‘All in One’ offer includes all standard legal costs, including Land Registry fees, Land Registry priority search, bankruptcy searches, property searches (such as local authority water and drainage fees) and VAT. In addition, the ‘All in One’ products have no valuation fees or product fees.

Both products are fixed for two years and are available at either 2.09%(% APRC) up to 60% LTV or 2.15%(% APRC) up to 75% LTV.

Newcastle Intermediaries’ existing range of products has also been refreshed, to include a five-year fix now available from 2.29% (reduced by 0.50%). Available at a maximum LTV of 60%, this deal comes with no product fee, a free standard valuation and £300 cash back.

Steve Carruthers, Head of Mortgage Distribution at Newcastle Intermediaries, said:

“Since entering the Help to Buy market, we’ve been working hard to enhance our offering to our broker partners. The introduction of a dedicated Help to Buy phone line and priority processing, as well as dedicated Help to Buy case ownership helps brokers to support home buyers using the scheme.

“Our All in One products, which offer more choice and help to ease the costs of purchasing a home, have also been added to our Help to Buy range - another example of how Newcastle Intermediaries is committed to supporting first time buyers.”

 

Newsletter sign up - News and blogs.jpg

 

You may also be interested in:

24.01.17
Common areas of concern when borrowing via a limited company for buy to let
Many landlords are now becoming more comfortable with buy to let borrowing via a limited company including the few additional hurdles this brings. However there is still a perception that the process is complicated and harder to get agreed but this is not always the case, as Gary McKenna, Consultant Mortgage Broker explains.
Read 

13.01.17
FAQs on Ltd Co borrowing for buy to let
Frequently asked questions on limited company borrowing for buy to let mortgages.
Read

14.02.2017
What the Housing White Paper means for SME builders and property developers
The Government has acknowledged that Britain’s housing market is broken and has published a White Paper aimed at tackling the crisis. Steve Olejnik looks at what this means for SME builders and property developers.
Read 

08.02.17 
Housing White Paper highlights need to improve safeguards in private rented sector
Admitting that the UK housing market is ‘broken’, the Government’s new Housing White Paper sets out a series of initiatives to support and diversify the housing market in order to create the type of homes that people can afford and in places they want to live.
Read

Author