Recent reductions in buy-to-let mortgage rates from ModaMortgages and Molo present new opportunities for landlords and investors. These changes could make financing more accessible for those looking to expand their rental portfolios.
What are the new buy-to-let rates?
ModaMortgages has introduced lower rates for its buy-to-let products, with two-year fixed rates beginning for single dwelling properties and for houses in multiple occupation (HMO) and multi-unit freehold blocks (MUFB) with up to six units. For those considering a longer-term commitment, five-year fixed rates are also available for single dwellings and HMOs/MUFBs.
Molo has made adjustments as well, cutting rates for HMOs and MUFBs. Their standard buy-to-let rates have been revised, with options for two-year and five-year fixed products, while specialist rates for HMOs and MUFBs are also available.
Who will benefit from these changes?
The revised rates are beneficial for both individual and limited company landlords, as they are available up to a certain loan-to-value (LTV). Additionally, the options for fee structures and free valuations enhance the attractiveness of these products. Landlords looking to finance properties with multiple units or HMOs can particularly benefit from the competitive rates offered by both lenders.
What this means for landlords and investors
These rate cuts provide an opportunity for landlords to secure more favourable financing terms, potentially improving cash flow and investment returns. Investors should consider reviewing their current mortgage arrangements to take advantage of these lower rates, especially if they are looking to expand their property portfolios.
Frequently asked questions
What types of properties are eligible for the new rates?
The new buy-to-let rates apply to single dwelling properties, houses in multiple occupation (HMO), and multi-unit freehold blocks (MUFB) with up to six units.
Are there options for non-UK residents?
Yes, rates for non-UK residents and expat borrowers remain unchanged.