Given the recent changes to buy-to-let mortgage interest relief and stamp duty charges, New Street Mortgages is among those buy-to-let lenders looking to improve their lending criteria to make it easier buy-to-let landlords to acquire property.
The lender this week announced rate reductions across its buy-to-let mortgage range, with a high street beating rate of 1.59% at 65% LTV for its 2-year discount product and just 1.94% at 75% LTV.
New Street has also reduced rates on its Let to Buy mortgages, cutting interest rates on all products by 0.5% and offering a 1-year fixed rate of 2.39% at 65% LTV.
“With all the changes we have recently seen in the buy-to-let market and with more to come, we’re determined to offer brokers deals that offer great value for our customers,” said Steve Griffiths, director of sales and distribution, The Northview Group.
Accompanying the reduction in rates, New Street has announced changes to its lending criteria, increasing the maximum borrower age from 75 to 80, whilst maximum valuation limits have also increased to £5m from £2m.
Buy-to-let mortgage rates have been cut on New Street’s fixed rate products as well. The lender’s 2-year fixed rate mortgage has been cut to 1.69% from 1.99% at 65% LTV. Rates on New Street’s 0% fee fixed rate range have also been cut by up to 0.3%.
Griffiths added: “The rate reductions position New Street with a competitive range of buy-to-let solutions, offering a rate at 65% LTV that beats anything that is available from the high street.
“We are constantly looking to improve our lending criteria to keep in touch with the changing demographic of borrowers, particularly as Britain’s population continues to age. We firmly believe that today’s changes to lending criteria will also open up New Street’s proposition to customers seeking to invest in the buy to let market or remortgage.”
Meanwhile, Barclays has launched what it claims to be its best ever range of fixed rates and fee free options for buy-to-let mortgages.
Rates include the following:
2.09% two-year fixed, 75% LTV with a 1% fee
2.99% five-year fixed, 75% LTV with a 1% fee
2.99% 10-year fixed at 65% LTV with a £2,000 fee
Fee-free options, including:
2.79% two-year fixed (buy-to-let), 75% LTV, £0 fee
2.79% (BBBR+2.54%) two-year tracker, 75% LTV, £0 fee
Simplified affordability based on personal and rental income
Craig Calder, director of Barclays Mortgages, said: “We are providing greater choice to individual landlord investors across the UK than ever before who are looking to purchase or remortgage rental properties.
“Barclays also considers both personal and rental income for affordability purposes, helping individuals with a variety of income types to achieve their landlord aspirations.”