Lenders looking to entice investors with new rates
Mortgage lenders are reducing rates and adjusting criteria to attract buy-to-let investors. Precise Mortgages has introduced changes to its product range, including rates starting from 4.49% and new fee products. These enhancements aim to offer a more competitive range while increasing landlords' borrowing capacity.
Precise has implemented several updates to its buy-to-let product line, featuring reduced interest rates starting from 4.49% and introducing new fee-based options.
These improvements aim to make their offerings more competitive and enhance the borrowing power of landlords.
Key changes include the return of Tier 1 products at 70% and 75% LTV, which require less paperwork for qualifying borrowers, and options available for HMOs, MUFBs, and limited companies. Additionally, Tier 2 and 3 products have been extended to 80% LTV with both two-year and five-year fixed rate options, allowing for more lenient adverse credit at higher LTVs.
A representative from Precise states: “Along with lowering rates, we have broadened our acceptance criteria for buy-to-let properties across all three tiers, which strengthens Precise’s position in the buy-to-let market.”
At the same time, the Mansfield Building Society has expanded the types of properties included in its buy-to-let portfolio to now encompass flats up to 10 storeys high.
Previously, the limit was four storeys. This change also includes flats above commercial premises and those in city centres, which will be assessed under the same guidelines.
Flats can now be financed up to 90% LTV for residential use and 75% LTV for buy-to-let, with new build flats (less than 12 months old) available at 85% LTV for residential and 70% LTV for buy-to-let.
A spokesperson notes: “Mansfield Building Society is well-known for our extensive criteria that support various unique situations, including different income types, credit histories, capital raising, and debt consolidation. By increasing the allowable number of storeys for flats, we broaden our appeal, especially in urban areas where high-rise buildings are common. We are excited to offer our flexible lending solutions to even more borrowers.
