Accord Mortgages and ModaMortgages have announced significant rate cuts in their buy-to-let mortgage offerings, impacting landlords and brokers across the UK. These adjustments come as lenders seek to enhance their competitive edge in a dynamic market, providing more attractive options for property investors.
What Changes Have Accord and ModaMortgages Made to Buy-to-Let Mortgages?
ModaMortgages has revised its limited-edition buy-to-let mortgage range, implementing rate reductions on both two- and five-year fixed-rate products. For five-year fixed rates at 75% loan-to-value (LTV), rates have been lowered, now starting for standard properties. Similarly, five-year rates for 80% LTV standard products have seen a reduction, starting for small Houses in Multiple Occupation (HMOs) and Multi-Unit Freehold Blocks (MUFBs).
In the two-year fixed-rate range, rates at 75% LTV have also decreased, with starting rates for standard properties and small HMOs and MUFBs. Notably, ModaMortgages continues to offer free valuations and no application fees on its limited-edition buy-to-let products, catering to both individual and limited company landlords.
How Are Accord Mortgages Adjusting Their Buy-to-Let Offerings?
Effective from a specified time, Accord Mortgages will implement rate cuts on its residential new business product range. The two-year fixed rates will see reductions, while three-year fixed rates will also be cut. For those seeking long-term stability, five-year fixed-rate options will have reductions.
Additionally, Accord is lowering the minimum loan size for selected products up to 75% LTV, making it more accessible for borrowers. The lender has also relaunched products at different LTVs starting from various rates.
What This Means for Landlords and Brokers in Buy-to-Let Mortgages
The recent rate cuts by ModaMortgages and Accord Mortgages present new opportunities for landlords and brokers. With more competitive rates and lower minimum loan sizes, brokers can offer clients a wider range of options tailored to their financial situations. Landlords looking to invest in buy-to-let properties will find these adjustments particularly beneficial, as they enhance affordability and potential returns on investment.
Frequently Asked Questions
What are the new rates for buy-to-let mortgages?
ModaMortgages has reduced rates for five-year fixed products for standard properties and small HMOs and MUFBs. Accord Mortgages has also cut rates on its residential range, with two-year fixes reduced.
How do these changes affect minimum loan sizes?
Accord Mortgages has lowered the minimum loan size for selected products, making it easier for borrowers to access finance for their buy-to-let investments.