Britain’s two leading buy to let lenders are flexing their financial muscle to grab a larger share of the market as landlords look to borrow more.
The Mortgage Works (TMW), the buy to let arm of The Nationwide, is chopping fixed rates back by up to 0.8% and trackers by up to 0.75% for new borrowers.
Rates start at 3.49% fixed for two years for low risk 55% loan-to-value (LTV) lending with a £995 fee – the same fixed rate for landlords wanting to borrow 80% LTV sees the rate climb to 4.69% and the fee surge to 2.5% of the loan.
TMW has some no-fee deals starting at 3.49% for landlords.
Spokesman Ian Andrew said: “Most of our buy-to-let products have an arrangement fee of £995 or less. With the latest rounds of rate cuts, investors can benefit from attractive monthly payments and low fees.”
BM Solutions is looking to boost lending to landlords as parent company Lloyds Banking Group pumps more cash in to the mortgage market.
The publicly owned bank is expected to signal more funds for landlords soon.
The bank has hinted buy to let lending will grow to just over 20% of total lending in 2013, compared with 17% 12 months ago.
The wraps are still on how much the bank intends to lend in 2013, but if the figures are in line with the previous two years, landlords can expect £5.67 billion earmarked for property investors.
BM Solutions head of sales Phil Rickards said: “2013 promises to be a successful year as we continue to be an active player in buy-to-let. This includes further improving our service, simplifying our process and recruiting additional staff to support the demand for our products and services.”
Other building societies are juggling their rates to jockey for position in the market.
Skipton Building Society has lopped 0.20% off three and five-year buy to let fixed rates at 70% or 75% LTV mortgages to buy or remortgage.
Rates are from 3.99% over three years or 4.29% over five years.
Application fees are £245.
Landlords looking for 70% LTV pay a £750 completion fee, while landlords borrowing more pay £1,250.
Remortgages come with fee-free legal and valuation package.
Nottingham Building Society has knocked 0.34% off buy to let mortgage rates. The cheapest is a two-year fixed rate at 3.65% up to 75% LTV. Landlords pay £1,999 in fees – with £499 up front.