The Mortgage Works (TMW) and Vida Homeloans are two lenders to cut buy to let mortgage rates this week in order to keep their propositions competitive and attractive to buy to let landlords.
The Mortgage Works has reduced the rates on some of its two-year fixed rate mortgages by 0.15%. This includes the lender’s 65% loan-to-value (LTV) and 75% LTV mortgages.
The rate for a 65% LTV deal now starts at 1.74%(4.4% APR), while the 75% option starts at 1.99%(4.4% APR). Both products carry a fee of £1,995.
The same mortgages are also available with free standard legals and valuation, with rates starting from 1.94% at 65% LTV and 2.19% at 75% LTV.
Paul Wootton, managing director at TMW said:
“TMW is looking to increase the competitiveness of its mortgage rates, with these reductions supporting landlords wanting to maximise cashflow.
“In addition, we are reducing rates on products with free standard valuation and free standard legals, offering an alternative for landlords wanting to minimise upfront costs.”
In addition to reducing the rates on the above mortgages by 0.60%, the intermediary-only lender has also cut the revert rates across its buy to let range.
Vida Homeloan’s buy to let rates have been reduced as follows: its two-year tracker rates now stand at 3.24%, its two-year fixed rates are 3.34%(6.1% APR) and its five-year fixed rates have been reduced to 3.89%(5.7%APR). The rates are applicable to all individual, limited company and HMO applications.
As for the lender’s buy to let rental cover requirements, the following applies:
- Basic rate UK tax payers: 125% cover with top up from 115%
- Higher rate UK tax payers: 140% cover with top up from 120%
- Trading limited companies/SPV/LLP: 125% cover with top up from 115%
- HMOs: from 130% cover
Louisa Sedgwick, director of sales, at Vida Homeloans, said:
“We have quickly established ourselves as a lender with an appetite for specialist residential and buy-to-let business, and these changes should ensure that we remain very competitive in this important segment of the buy-to-let market.”
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