Lenders cut buy to let rates and launch new five year fixes for expats and light refurb
Pepper Homeloans and Kent Reliance cut their buy to let mortgage rates, while Saffron launches new five-year fixed rate deals for expats and light refurb.
Pepper Homeloans has announced that it is bringing two and five-year ‘near prime’ fixed rates to the market and is reducing some existing rates by up to 0.50%.
The lender’s ‘near-prime’ range will now include two-year fixed rates starting from 3.38%, as well as five-year fixed rates from 4.18%.
Pepper has also cut rates by up to 0.50% across all its buy to let products.
Kent Reliance is another lender to cut its buy to let rates, launching a 2.99% deal which it says is its lowest ever.
The cuts apply to the lender’s two and three-year mortgages for limited companies, houses in multiple occupation (HMO) and multiple flats under one freehold.
Its ‘record’ rate of 2.99%(6.2% APR), meanwhile, applies to its 65% loan-to-value (LTV) mortgages, which carry a fee of 1.50%. The previous rate for this deal was 3.34%(6.2% APR).
As for Kent Reliance’s other rate cuts, included is a two-year fixed rate deal at 65% LTV reduced by 0.60% to 3.19%(6.2% APR) with a 1.50% fee.
Saffron Building Society is targeting UK expatriates and landlords wanting to refurbish with two new five-year fixed rate mortgages.
Its expat buy to let mortgage deal is being offered at 4.97%(5.6% APR) on 65% LTV loans, with a 2.5% arrangement fee.
The light refurbishment loan available to buy to let landlords comes at a rate of 4.77%(5.5% APR) to 75% LTV with a 2% fee.
Both products switch to a standard variable rate (SVR) of 5.39% and allow overpayments of 10% per year.
Anita Arch, head of mortgage sales for Saffron said:
“Our specialist buy-to-let products not only feature attractive fixed rates, but also accommodating criteria.
“For example, there are no country restrictions on the expat product and the light refurbishment deal enables landlords to purchase or remortgage property and make alterations before the property is let out.
“Additional funds can also be released after a satisfactory re-inspection and confirmation of improved end-value and rental income.”
As from the 3rd April, Aldermore will launch a 0.30% retention fee for brokers.
The fee will be applicable to product transfers where existing Aldermore customers transfer on to one of its loyalty mortgages, and will be available on residential owner-occupied and standard buy to let loans.
Charles McDowell, commercial director at Aldermore said that the proposition puts brokers “at its heart” and gives them “the recognition they deserve”.
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