BTL Lenders Reduce Rates & Relax Stress Tests…

In a climate where market volatility continues to present challenges and opportunities alike, staying informed about market movement is more crucial than ever for Buy to Let investors. This week, we focus on Landlords and bring you the latest updates and insights from the Buy to Let sector.

Select Lenders Cut BTL Rates
A number of large and specialist lenders have reacted positively to the Bank of England’s decision to hold the base rate. 

Landbay has recently cut its stress testing requirements for like-for-like remortgages. Rob Stanton, Landbay’s Sales and Distribution Director, notes, “With a high level of mortgage maturity in the BTL market, many landlords are transitioning to higher rates than their current deals. By adjusting our stress testing measures, we aim to alleviate some of the pressures landlords face with affordability calculations.”

Rate Reductions by Kensington & Virgin 
Kensington Mortgages has announced a significant reduction in rates across both residential and Buy to Let products, with cuts of up to 33 basis points. And Virgin Money is following suit with new buy-to-let exclusives and a reduction on a number of rates.

Recent Market Insights
We looked at the latest Q1 2024 Landlord Trends report carried out by Foundation Home Loans. Landlords were asked to identify the various changes they had made over the past 18 months in order to mitigate increasing costs.

The report reveals several strategies landlords have adopted in response to rising costs, these include:

  • Financial Adjustments: 30% have renegotiated mortgages with their current lenders, and 22% have remortgaged to another lender.
  • Operational Changes: Increasing rents was a choice for 29% of landlords, and 17% have taken more direct management roles to reduce expenses.
  • Portfolio Decisions: 25% cancelled plans to purchase additional properties, while 15% have sold properties to lessen mortgage burdens.
  • Refinance: Just over 4 in 10 landlords said they will remortgage or opt for a product transfer this year.

Is your mortgage product coming to an end?
If your fixed rate deal is coming to an end, this is a key time to speak with our mortgage brokers who can help you navigate this with expert advice.

Speak to our award winning mortgage brokers
Get in touch now on 0208 364 3444 alternatively click here to schedule a free consultation call.

Share This

Copy Link to Clipboard