Santander has announced its buy-to-let (BTL) affordability rates will be reduced on Wednesday.
The affordability rate for standard BTL borrowers will be lowered from 7.31% to 7.15%, while for borrowers taking a five-year fix, this will fall from 5.31% to 5.15%.
The affordability rate on pound-for-pound BTL remortgages will also be cut from 5.31% to 5.15%.
This change will affect full mortgage applications made from 6am on 20 November.
Fleet Mortgages cuts five-year fixed BTL rates
BTL lender Fleet Mortgages had reduced rates on a number of five-year fixed rate mortgages.
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This applies to deals at 75% loan to value (LTV) for standard, limited company and house in multiple occupation (HMO) or multi-unit block (MUB) lending with a 3% fee.
Cuts of 0.15% have been made, and the standard and limited company option is now priced at 5.14%, down from 5.29%.
The HMO/MUB product has been reduced from 5.69% to 5.54%.
Steve Cox, chief commercial officer at Fleet Mortgages, said: “The rate environment over the last few weeks, particularly in the swap markets, has been fairly turbulent. However, given the way we are funded, Fleet is able to move product pricing even when the wider buy-to-let market might be going in the other direction. We’ve been able to do that today with these new cuts to our specific five-year fixes, which come with a 3% fee, bringing them down by a significant 15 basis points.
“There may have been a lot of noise around the stamp duty changes announced at the Budget, but landlords are a pragmatic bunch, and continue to understand the demand/supply imbalance within the private rental sector, and what this can mean for their existing portfolio, and the ongoing opportunities to secure greater levels of yield and profitability from any new additions.”
He added: “In that sense property – at the right price – is going to remain an attractive investment and an asset class that can continue to reward over the medium to long term. Available for standard, limited company and HMO/MUB landlords, these price cuts will help borrowers in meeting affordability, whether remortgaging existing properties or looking to purchase.”
