Recent adjustments to buy-to-let mortgage offerings have been announced by Shawbrook and The Mortgage Lender (TML), impacting landlords and investors. These changes include new products and rate reductions that could influence borrowing decisions in the property market.
What are the new buy-to-let mortgage products?
TML has introduced a new limited-edition 5-year fixed rate mortgage, with rates commencing at 4.74%. This product offers flexibility with both 2% and 5% completion fee options, alongside a complimentary valuation. Shawbrook has also made significant reductions, with rates for Single Lets starting from 4.84% and HMO and MUFB products beginning at 4.89%.
How have rates changed across buy-to-let products?
Both Shawbrook and TML have implemented rate reductions across various buy-to-let offerings. TML has lowered rates by up to 15bps on selected 2-year and 5-year fixed products, while Shawbrook has reduced rates by as much as 25bps on its Specialist Buy-to-Let range. Notably, the 5-year fixed HMO rates from TML now start from 5.06%.
What does this mean for landlords and investors?
The recent changes in buy-to-let mortgage products may provide landlords with more competitive borrowing options, particularly those looking to finance properties in the HMO and MUFB sectors. With the removal of the £150 application fee on all ex-pat products by TML, this could further attract overseas investors. Landlords should assess these new products to determine if they align with their investment strategies.
Frequently asked questions
What factors should landlords consider when choosing a buy-to-let mortgage?
Landlords should evaluate interest rates, fees, product features, and the flexibility of repayment options when selecting a buy-to-let mortgage. It’s essential to consider how these factors align with their long-term investment goals.
How can I calculate my buy-to-let mortgage affordability?
Utilising a BTL affordability calculator can help landlords assess how much they can borrow based on rental income and other financial factors.