Since the Bank of England cut the rate to 5%,  many lenders have been galvanised in to reducing their buy to let lending rates.  This means landlords can now borrow more on their investments as well as potentially lower monthly payments on remortgages.  Capital home loans have pushed the envelope and introduced a sub 3% deal at 2.93% for 2 years with 7% fee.  This is only for 70% LTV.  Even with fees added, this could be useful for some landlords looking to generate cashflow or maximise their borrowing.  

An alternative is the TMW’s 3.59% with 3% fee.  With their ICR and default rates, the loan turns out to be only slightly lower.

On the 5 year rate terms Capital home loan still scores the highest, again with 7% fee.  But only for loans above £385,000.  There are others such as TMW can provide a better value for the customer for loans under £385,000 at 70% LTV.   Another option is the Virgin Money at 3.93% with 3% fee. 

This level of fees can make some landlords flinch.  However, they will have to sacrifice both the rate and loan amount to get a lower fee deal.  For deals under £5000 in fees all rates are above 4.5%.

For fees under £5000, Natwest scores the highest at both 2 year and 5 year rates.  On 2 year deals both Skipton and Leeds may be more value for money with fees under £1000.  For the 5 year deals Natwest is still very keenly priced, but some of the smaller building societies such as Newcastle BS and Suffolk BS also have fees under £1000.  

All above is for 70%. However, at 75% for the same client criteria the loan levels are somewhat different. On the 2 year term, Lendco is the highest lender now. TMW remains competitive at all levels. Both 2 year and 5 year

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