Lenders are trying to lure landlords with buy to let mortgage rate cuts and new fixed rate deals.
Several banks have shaved interest rates and launched new mortgages – and some are looking for niche markets like professional landlords who earn a living from renting property.
The latest lender to expand buy to let offers is Shawbrook Bank with buy to let mortgages starting with rates at LIBOR plus 3.59%.
Shawbrook has new products for properties valued between £75,000 and £500,000 up to 75% loan-to-value. The mortgage is a 12 or 24 month fixed rate with a 1% early repayment charge
Shawbrook Bank’s Stephen Johnson said: “Shawbrook is a specialist lender working on cases that require a human approach and pragmatic underwriting.”
Metro Bank wants to sign up professional landlords with portfolios of 25 or more letting properties.
With two new buy to let deals – a 4.89% two-year tracker and a five-year fix at 5.25% – Metro Bank will lend on up to 10 homes at a time, providing borrowing is capped at £2.5 million at 65% portfolio loan-to-value (LTV).
Companies as well as sole traders are invited to apply.
Virgin Money has cut buy-to-let loan rates and is offering a two-year 2.99% fixed rate at 60% LTV with a £2,495 fee, while another two-year fixed rate at 60% LTV comes at a reduced interest rate of 3.38% with a £1,995 fee.
The lender will pay a £750 cash back to direct customers.
BM Solutions has shaved 0.2% from interest rates on two-year fixed and tracker buy-to-let loans up to 75% LTV and 0.1% from two-year fixed rate 60% LTV deals.
Fixed rates start from 3.99% and tracker rates from 3.89% at 75% LTV.
The lender has new two-year fixed and tracker deals for properties worth more than £200,000 at 60% LTV and 75% LTV with a £1,295 fee and interest rates from 3.19%.