The festive break is fast approaching and many of us are looking forward to a bit of downtime.
After an extremely busy year, I for one am very much looking forward to spending some time with my loved ones, relaxing and taking a moment to reflect upon 2024.
As ever, there have been challenges to face, but also a huge amount of positivity and innovation within the market. This positive sentiment has continued right to the end of the year, as we’ve seen many price reductions and product launches happening in just the last couple of weeks.
It’s fantastic to see lenders still reviewing their ranges and making these changes, helping us all to end the year on a high note.
Let’s take a look now at some of these recent updates.
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BTL changes in December
Paragon launched a buy-to-let (BTL) five-year fixed switch product priced at 5.99%. The maximum loan to value (LTV) is 75% and there is a product fee of £999. Its BTL switch products are available for portfolio and non-portfolio landlords, limited company applications and consumer BTL.
This comes close on the heels of a BTL product range refresh that now sees two-year fixed rates starting from 3.64% and five-year fixed rates from 4.59%, all benefitting from a free mortgage valuation.
ModaMortgages is offering a new range of limited-edition two- and five-year fixed rate products. Two-year rates are available from 3.64% and five-year rates from 5.04%. These are available up to 75% LTV and include free valuation and zero application fees. The maximum loan amount on these limited editions is £2m.
Aldermore introduced limited-edition BTL products to give clients more options. For those clients with single residential investment properties, new five-year fixed products are available from 4.74% up to 75% LTV with a 5% fee. Five-year fixed multi-property products are available from 4.69% up to 75% LTV with a 5% fee.
Vida Homeloans made price reductions across its BTL range by up to 0.26%. Five-year fixed rates in its standard range start at 5.51% up to 75% LTV with a 2% fee in the Vida 36 tier. In a criteria update, the lender has confirmed that BTL applications will now be stressed at pay rate (with interest coverage ratios (ICRs) unchanged). The application process has also been streamlined to allow digital signatures for documents that require certification.
Foundation Home Loans has announced reductions of up to 30 basis points (bps) across its BTL specials range to better support landlords’ diverse needs and circumstances. The reductions include F1 two-year fixed rates that have been reduced by up to 0.25% and now start from 4.49% for a limited company application up to 65% LTV with a 4% fee. F1 special portfolio landlord five-year fixed rates with a 6% fee now start from 4.89%.
Rate cuts galore
Continuing the theme of price reductions, CHL Mortgages also reduced all its limited-edition products by up to 15bps. The lender is offering two-year fixes at 75% LTV from 3.94% and five-year fixes at the same tier from 4.59%. Variable fee options are on offer.
Fleet Mortgages has cut the rates on select five-year fixed rate products following the recent positive move in swap rates. Its 75% LTV five-year fixed products with a 3% fee have been reduced by 15bps across standard and limited company ranges and are available from 4.99%. The Energy Performance Certificate (EPC) A-C equivalents have also been reduced by 15bps and are available from 4.89% with the same 3% fee.
West One reduced rates on its first charge BTL product range, including updates to limited-edition, standard, specialist and complex products. W1 fixed rate products of standard core, small houses in multiple occupation (HMOs) and multi-unit block (MUBs) and above or next to commercial saw a 15bps reduction, while other W1 fixed rate products have been reduced by 10bps. Limited-edition fixed rate products have been reduced by 15bps. Two-year fixed rates now start from 2.34% and five-year fixed rates from 4.08%.
LendInvest has reduced five- and seven-year fixed rate BTL products by 10bps, meaning initial rates on five-year fixed products at 75% LTV now start from 4.79% for standard properties, 4.89% for small HMOs and 4.94% for small multi-unit freehold blocks (MUFBs). Seven-year fixed rates now start from 5.79%.
Landbay has made further rate reductions of up to 0.2% on its two- and five-year fixed rate products, including automated valuation models (AVMs) and non-portfolio ranges, all of which feature a variable fee structure. Highlights include an AVM/standard two-year fixed, now available at 3.59% up to 75% LTV with a 6% fee, and an AVM/non-portfolio five-year fixed available at 5.29% up to 75% LTV with a 2% fee.
After all those reductions, it just remains for me to wish you a very Merry Christmas and here’s to a healthy, prosperous New Year.
