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Buy to Let mortgage lenders reduce and introduce rates

Metro Bank, Accord and West One Loans make changes to buy to let and residential mortgage offerings.

Metro Bank has cut the cost of its five-year fixed-rate mortgages by up to 30 basis points. The biggest reductions are on its buy to let range, where a five-year fix at 65% LTV has been reduced from 2.79% to 2.49%.

Metro Bank has also introduced a new rate of 2.39% for loans up to 60% LTV. Metro Bank has made similar reductions to other buy to let deals, but only at selected LTVs. This includes its two-and three-year fixed rate deals, plus its two-year tracker. All are part of its core buy to let range.

For example, those opting for a three-year fix at 75% LTV will now pay 2.49% – a reduction of 30 basis points.

On its residential range, Metro Bank has introduced a new 60% LTV tier on its residential five-year fixes. At this new tier borrowers pay just 1.79%.

Metro Bank chief executive Craig Donaldson says that bank offers “competitive rates and fast turnaround times” combined with additional benefits, such as allowing 20% overpayments for residential customers, and top-slicing for buy to let borrowers.”

Meanwhile Accord is offering landlords £500 cashback on a number of its buy to let remortgage deals. Cashback is available on eight remortgage loans, all of which already offer free standard valuation and legal assistance.

The products available include a five-year fix at 2.44% (at 60% LTV), a 2.49% three-year fix (at 65% LTV) and a two-year fix at 2.24% (at 75% LTV).

Accord, part of the Yorkshire Building Society, says this cashback is paid once the mortgage is completed. These mortgages all have a £950 product fee, which must be paid upfront.

Accord Buy to Let commercial manager Chris Maggs says:

New Year is synonymous with fresh starts when people look to get their finances in order.

“It’s likely that the buy to let market will be predominately focused on remortgage lending during 2018. We hope by adding cashback to some of our popular mortgages it will help landlords manage the upfront costs of remortgaging a property.”

Elsewhere among buy to let lenders, West One Loans is launching a new range of second charge buy to let mortgages. This range will include variable rate products, with no ERCs, as well as two-, three- and five-year fixed-rate options. Rates start from 6.99%.

Interest-only options are also available for landlords who can evidence a credible repayment strategy. LTVs are available up to 75% on loans ranging from £10,000 to £250,000. There are no restrictions on the number of buy to let properties within a landlord’s portfolio.

The deals will be available to intermediaries who specialise in advising and arranging second charge mortgages. West One said that this new buy to let range was part of plans to broaden its range of lending options. The lender’s core business is providing short-term bridging loans on residential and commercial property.

West One Loans sales director Marie Grundy says:

“Second charge buy-to-let plans are a valuable option to landlords who may have experience greater difficulty in remortgaging recently.

“Where there is a genuine need to raise capital, such as for the refurbishment of an existing rental property to increase yield, or to carry-out essential repairs a second charge loan could be the most appropriate financial solution for borrowers.”