A brace of buy-to-let mortgage lenders have today announced changes and additions to their existing products.
Both Virgin Money and Aldermore have made the alterations, as competition in the market remains fierce.
Virgin Money has announced cuts to both its buy-to-let and residential products. A new £300 cashback incentive has also been launched for customers taking advantage of selected two, three and five-year fixed rate deals.
Key alterations to buy-to-let rates at Virgin include:
- a two-year fixed rate deal with up to 70% LTV, reduced to 2.09%.
- a five-year fixed rate deal up to 70% LTV, reduced to 3.24%
- a two-year tracker rate deal up to 75% LTV, reduced to 2.29%
Peter Rogerson, Virgin Money’s Commercial Director for Mortgages, noted: ‘The reductions we have made to our range ensure that we continue to offer attractive options for purchase and remortgage customers looking for residential and buy-to-let loans at a range of different deposit levels. We think these products will be well-received by the market which remains upbeat, as reflected in our recent poll of intermediaries where nearly 80% said they expect the mortgage market to grow in 2017.’
Two mortgage lenders cut BTL rates
Aldermore has also launched a range of limited edition buy-to-let mortgage products for investors looking for loans of up to £1m.
Rates on the firm’s five-year fixed rate deals have been cut by up to 0.74%.
New rates begin from:
- 79% at up to 70% LTV
- 99% at up to 75% LTV
- 25% at up to 80% LTV
In addition, a new term variable rate buy-to-let mortgage is available at 3.68%, up to 75% LTV.
Charles Haresnape, group managing director of mortgage at Aldermore, said: ‘The change in the base rate has led to the average five-year fixed rate for a 75% loan-to-value buy-to-let mortgage falling below 4% for the first time and now is a great time for landlords to remortgage some or all of their portfolios.’
‘Buy-to-let as an investment continues to be underpinned by strong fundamentals, with tenants who signed up to a new tenancy during the month of August agreeing to an average rental increase of 3.1% year on year. Aldermore looks to support landlords wherever possible, and our recent product changes are a testament to our commitment to those in the buy-to-let market,’ he added.