InterBay Commercial has slashed borrowing rates on its buy-to-let and HMO ranges.
The company, which forms part of specialist lending group OneSavings Bank plc, yesterday announced that it is cutting its entire range of buy-to-let and HMO rates. Variable rates will now start from 4.2%, and 5 year fixed rates, which are stress-tested at pay rate, will start from 4.4%.
The reprice is supported by simplification of the range with the removal of the 70% and 80% loan-to-value brackets for buy-to-let and HMO, providing simpler product ranges that continue to meet clients’ needs
OneSavings Bank's Darrell Walker said: “The new pricing and simplification of our product range forms part of our commitment to provide brokers with access to a competitive and compelling proposition for their specialist clients.
“These changes complement the improvements we have been steadily making to our offering throughout the year, matching changing market needs, and will ensure we are at the forefront of our brokers’ minds.”
Earlier this week, Ray Boulger of John Charcol suggested that a fall in gilt yields will reduce the cost for lenders of longer term funding and hence open the door for even cheaper mortgages.
Given that most mortgage lenders did not pass on much of the pre-referendum reductions in rates, Boulger expects to see greater price competition, especially in the longer term fixed rates, helping to push already cheap fixed-rate mortgages to new lows.
He forecasts that many lenders will follow HSBC’s lead and slash five-year fixed-rate mortgages priced to below 2% and advised those thinking about taking out a fixed deal to “hold off for a week or so and see where the market settles down”.