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Buy to let and residential lenders refresh rates

Specialist lender Together has cut rates across its mortgage range, which includes its right-to-buy and shared ownership deals.

Its right-to-buy mortgage deals now include a variable rate at 4.85 per cent, and a five-year fix at 5.6 per cent. These are available for houses and bungalows valued at over £125,000.

On its shared ownership mortgages, Together now offers a variable rate of 5.99 per cent and a five-year fix at 6.74 per cent. It has also updated reducing rates by 1.5 per cent across its consumer buy-to-let range.

The lender has changed some of the terms of its mortgages to help clarify its offering and offer additional support to customers who find themselves in the position of “accidental landlord”.

These changes will see maximum loan amounts rise to £2m on first charge BTL mortgages, and the maximum LTV raised to 75 per cent. The maximum loan for a second charge BTL mortgage has been increased to £500,00.

Together’s personal finance chief executive Pete Ball said:

“The changes we’ve introduced include our lowest ever variable rate for right-to-buy customers and significant reductions on our five-year fixes.

“We’ve also repriced our entire shared ownership range to help more customers get on or move up the properly ladder. We’re keen to ensure that prospective customers and housing associations are aware of our offering and our common-sense approach to lending.”

Meanwhile Paragon has added four two-year fixed portfolio mortgages, starting at 2.99 per cent at 75 per cent LTV. The new loans cater for limited companies, limited liability partnerships and single self-contained units. They also include options for HMO specialist property types and multi-unit blocks. The new products have no application or valuation fees.

In the remortgage sector Paragon has launched two new limited-edition two-year fixed buy-to-let remortgage products.

One is for portfolio and the other is for non-portfolio customers, both at 75 per cent LTV. Both cater for SSC units mortgaged in the borrowers’ names. The limited edition portfolio product is fixed at 2.85 per cent, the non-portfolio product at 1.99 per cent and includes free legals, with a £150 application fee charged.

Paragon managing director, mortgages, John Heron said: “We regularly review our buy-to-let mortgage product range to ensure we are offering the best choice and value to our landlord customers and intermediary partners.

“The popularity of fixed term mortgage products is higher than it has ever been. These additions to Paragon’s portfolio and non-portfolio product ranges reflect that – and we’re proud to support landlords by offering products with no application or valuation fee.”

In the residential sector, Newcastle Intermediaries has launched a first-time buyer range of 95 per cent LTV mortgages with free legal fees following last Wednesday’s Budget announcement in which the Chancellor scrapped stamp duty for first-time buyers on properties worth up to £300,000 and on the first £300,000 of properties valued at up to £500,000.

The lender has said it hopes to make the home buying process even easier by removing “unfront and often unexpected” fees and streamlining the advice process.

The new range starts at 4.25 per cent for a two-year fixed rate or 4.60 per cent for a five-year fixed rate. Both products include all standard legal costs, including Land Registry fees, Land Registry priority search, bankruptcy searches, property searches and VAT. The range also has no reservation or completion fees.

Newcastle Intermediaries head of mortgage distribution Steve Carruthers said:

“We’re fully committed to helping first-time buyers onto the property ladder and welcome the Budget announcement … which will hopefully help even more people own their first home.”

In a similar spirit Metro Bank has repriced its five-year fixed rate mortgage range and will offer deals at lower LTVs again.

The bank pulled its five-year fixes at 65 and 70 per cent LTVs on 25 October. However, it has returned to this market with significantly higher rates.

On its core range, its five-year fix at 65 per cent LTV will be 1.84 per cent; previously this was available at 1.69 per cent. At 75 per cent LTV the new rate is 1.94 per cent – up from 1.79 per cent. The five-year fixes from 75 to 85 per cent LTV remain unchanged, while the 90 per cent LTV deal has increased from 2.54 per cent to 2.59 per cent.

All these deals have a £999 product fee for new customers. This is waived for existing customers.

The changes are mirrored in its remortgage range, with Metro Bank reintroducing rates for those looking to borrow at 65 or 70 per cent LTV.

At 65 per cent LTV customers have the option of paying 1.89 per cent, with a £999 product fee, or 2.09 per cent with no fee.

While rates remain the same for those borrowing between 75 and 85 per cent LTVs, they have risen for those borrowing 90 per cent of their property’s value.

Here rates have gone from 2.59 per cent to 2.64 per cent (with a £999 product fee). Alternatively, borrowers can pay 2.84 per cent (up from 2.79 per cent) with no fee. These fixed rate deals are all available on mortgages up to £2m.