Many buy to let rates are below pre budget levels.
There was a frenzy of rate rises by buy to let lenders in November. This seems to be in haste and bit of herd behaviour. What we saw last week was, many lenders reverting and reducing rates.
Below is a list of lenders who have some or most of their rates below pre-budget levels now. Suggesting that many of the increases last month was too high and lenders have had to shave some of the increases. Combination of rate rises and raised stamp duty may have affected affordability levels and inhibited many deals from completing.
Lowest rate for a buy to let in the whole of market is 2.49% from UTB at 40% LTV for a standard single property. Though this comes with a 9.99% fee. This is lower than any deal available for a residential home buyer. It is unlikely a non-investor will accept that level of fees somehow.
The average Buy to let rate currently is 4.77% and highest 8.45% for a Holiday Let deal.
Lowest and highest rates for a SSC property at 75% LTV; Purchase.
| Lowest | 2Y | 5Y |
| SSC | 3.24% | 3.99% |
| HMO | 3.44% | 4.14% |
| HMO 6-10 bed | 4.24% | 5.44% |
| MUFB | 3.44% | 4.84% |
| Holiday Let | 3.83% | 4.85% |
| Highest | 2Y | 5Y |
| SSC | 7.04% | 6.74% |
| HMO | 7.04% | 6.39% |
| HMO 6-10 bed | 7.34% | 6.60% |
| MUFB | 7.04% | 6.40% |
| Holiday Let | 8.45% | 8.45% |
Highlights this week include Kent Reliance re-introducing several lower LTV bands with lower fees to give applicant’s more choice and Santander reducing their buy to let stress rate to increase loan levels. If the government’s aim was to reduce the affordability of buy to let purchases it certainly has had an impact. This is why a buy to let loan comparison calculator becomes imperative for brokers as that provided here by axessmax.
Lenders with some or all of their rates below pre-budget levels*.
| Accord | Newcastle for Intermediaries |
| Aldermore Mortgages | Paragon Banking Group PLC |
| Buckinghamshire BS | Precise Mortgages |
| Kensington Mortgages | Quantum Mortgages |
| Kent Reliance | Skipton BS |
| Keystone | Suffolk Building Society |
| Leeds BS | The Mortgage Lender |
| Mansfield BS | The Mortgage Works |
| United Trust Bank | |
| Melton Building Society | Vernon BS |
| Metro Bank | Vida Homeloans |
| Molo Finance | Virgin Money |
| NatWest | West One Loans |
| Newbury BS | Zephyr Homeloans |