New Street cuts buy to let five-year fixed rates, Secure Trust reduces its residential mortgage rates and Accord Mortgages increases its loan to income (LTI) ratio and introduces a cashback incentive for landlords.
New Street has reviewed its five-year fixed rate buy to let mortgage offering, cutting rates across the whole range by up to 0.65%.
The lender’s five-year 75% loan to value (LTV) deal with no fee has been reduced from 4.04% to 3.39%, while its five-year 75% LTV mortgage (with 1.5% fee) is now at a rate of 3.09%, reduced from 3.64%.
New Street, which is part of the Northview Group, has also cut select three-year fixed rate deals, including its three-year 80% LTV mortgage, which is now available at a rate of 3.34%, reduced from 3.44% and comes with a 1.5% fee.
Mortgage newcomer Secure Trust Bank is targeting borrowers often overlooked by high street lenders, such as contract workers, the self-employed and those with complex incomes, by cutting the rates on its residential mortgages by up to 0.45%.
Included in the range of cuts are the following mortgage deals:
• Two-year fixed 65% LTV, reduced by 0.3% to 2.69%
• Two-year fixed 80% LTV, reduced by 0.45% to 3.19%
• Three-year fixed 65% LTV, reduced by 0.15% to 3.09%
• Three-year fixed 80% LTV, reduced by 0.26% to 3.49%
• Five-year fixed 65% LTV, reduced by 0.05% to 3.39%
Accord Mortgages is also making changes to its residential mortgage offering, increasing its loan to income (LTI) cap by five times income.
For loans above £500,000 the the lender’s LTI will be increased from four to five times income. For loans that come in below £500,000, Accord will lend five times income where the household income is above £70,000 and 4.49 times, for households with an income below £70,000.
The lender will apply its new LTI caps to all LTVs and first-time buyer deals and has said that it also intends to amend its stress rate and will feed improved Office for National Statistics data into living costs, in order to raise lending.
In a boost to landlords, Accord Buy to Let is offering cashback across its entire mortgage range.
Once a mortgage completes, landlords will receive between £250 and £750 cashback depending on their chosen product.
The lender has also reduced rates on 28 of its lower LTV products by 0.55%.
Included in the cuts is a two-year fixed rate remortgage product at 65% LTV, which is offered with a £1,995 product fee, free standard valuation, free legal fees and £250 cashback on completion.
Another product to note is Accord’s two-year fixed rate 75% LTV mortgage at 1.99% available with a £1,995 product fee plus free standard valuation and £550 cashback on completion.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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