Accord Mortgages and ModaMortgages have announced significant rate cuts in their buy-to-let mortgage offerings, providing more competitive options for landlords and investors. These adjustments come at a time when many are looking to optimise their borrowing costs amidst fluctuating market conditions.
What Changes Have Been Made to Buy-to-Let Mortgages?
ModaMortgages has repriced its limited-edition buy-to-let mortgage range, implementing reductions across both two- and five-year fixed-rate products. Specifically, five-year fixed rates at 75% loan-to-value (LTV) have been decreased, while the five-year 80% LTV standard products have seen a cut. Rates now begin for standard properties and small Houses in Multiple Occupation (HMOs) and Multi-Unit Freehold Blocks (MUFBs). In the two-year range, rates at 75% LTV for standard properties and small HMOs/MUFBs have also been reduced, starting for both categories.
How is Accord Mortgages Responding?
Accord Mortgages is set to implement rate reductions on its residential new business product range starting soon. The new offerings will see two-year fixed rates cut, and three-year rates reduced. For those seeking longer-term stability, five-year fixed options will have rates reduced. Additionally, Accord is lowering the minimum loan size on selected products at 75% LTV, making it more accessible for first-time buyers and those with smaller deposits.
What This Means for Landlords and Borrowers
These rate cuts are particularly beneficial for landlords looking to expand their buy-to-let portfolios or refinance existing properties. The reductions in rates provide more competitive borrowing options, potentially increasing profitability for landlords. For borrowers, Accord’s changes may open doors to home ownership with lower deposit requirements, particularly appealing to first-time buyers. This shift in the market may encourage more activity among brokers as they seek to match clients with these newly priced products.
Frequently Asked Questions
What are the new rates for ModaMortgages’ buy-to-let products?
ModaMortgages has reduced rates for five-year fixed products starting for standard properties and small HMOs and MUFBs.
How has Accord Mortgages adjusted its offerings?
Accord Mortgages is cutting rates on its residential products, with two-year fixes reduced and minimum loan sizes lowered.