More Buy-to-Let Lenders Reducing Mortgage Rates

With Fleet Mortgages adding to the new deals launched across the sector this week in a wave of rate cuts, landlords on the lookout for energy-efficient buy-to-let mortgage products have one more to consider.

Fleet Mortgages, a specialist lender, has launched a range of two-year fixed-rate mortgage offers on the back of last week's successful relaunch of its five-year EPC A-C mortgage options, available for properties with higher Energy Performance Certificate ratings only.

The new two-year offers start at competitive rates of 4.59% for both standard and limited company property, while HMOs or multi-unit blocks start at 4.89%; all EPC A-C products also have a 3% fee.

EPC Standards Set to Rise by 2030

Steve Cox, Chief Commercial Officer at Fleet Mortgages has said that they are conscious about how EPC standards will be enhanced to a minimum 'C' rating by 2030. That might seem some distance away, but landlords who can meet those standards now can access the more competitive rates on offer.

Cox added to this by saying how this now presents a perfect opportunity for advisers to assist their landlord clients in making necessary changes to stay compliant and benefit from the sharpest rates on offer. Meanwhile, Fleet has introduced a £1,000 cashback for landlords to improve the EPC rating of their property during the fixed period.

Foundation Home Loans Joins Rate Reduction Trend

Buy-to-Let by Foundation, part of Foundation Home Loans, also disclosed that it cut rates by up to 0.5% across its BTL mortgage range; rates are as low as 5.29%.

The rate reductions are across the three borrower tiers: F1 (clean credit), F2 (minor credit issues or specialist properties) and F3 (recent credit challenges).

Some of the key products include:

• F1 and F F2 two- and five-year fixed rates reduced by up to 0.35%, now from 5.29% (1.5% fee) up to 80% LTV.
• F2 Holiday Lets: Five-year fixed rates available up to 75% LTV from 6.19% (2% fee).
• F2 HMO Limited Edition: Five-year fixed rate, 5.74%, with a reduced £2,995 fee (from £4,995) up to 75% LTV.
• F1 ERC3: Five-year fixed, early repayment charges for the first three years, reduced to 5.79% (1% fee) up to 75% LTV. F1 and F2 Green Fee-Assisted: Five-year fixed rates reduced by 0.20%, now from 5.44% (1.25% fee) up to 75% LTV.

Tom Jacob, Director of Product and Marketing at Foundation, said that the rate cuts are across a wide range of products, from our limited-edition mortgages to specialist sectors such as HMO and holiday let. He also added that its five-year HMO Limited Edition has received one of the more impressive fee reductions of £2,000 and will additionally sharpen the lender's competitive positioning.

The Mortgage Works Follows Suit with Lower Rates

The Mortgage Works has also trimmed its buy-to-let mortgage range for new business by up to 0.35% and rates now start from a two-year low of 3.49%.

Rates changed include:

• Five-year fixed rate - purchase and remortgage: 3.69% - £950 fee - 65% LTV (was 3.79%, a 0.10% cut).
• Two-year fixed rate - purchase and remortgage: 3.99%, £3,995 fee, available up to 65% LTV (reduced by 0.35%).
• Five-year fixed rate - purchase and remortgage: 3.99%, £3,995 fee, available up to 65% LTV (reduced by 0.15%).

Joe Averne, Senior Manager of Buy-to-Let Mortgages at TMW, commented on this stating how the rates starting from 3.49% could increase the potential for buy-to-let investors.

Conclusion

This provides a rare opportunity for landlords to lock in good terms, particularly where properties can demonstrate better energy efficiency. The buy-to-let mortgage rates are continuing to fall, and it is here that Fleet Mortgages, Foundation Home Loans, and The Mortgage Works are leading the charge, offering competitive rates and incentives as the call for more energy-efficient housing gathers pace.

For landlords, this means not only an opportunity to cut costs but also a call to future-proof their properties in advance of the 2030 EPC regulations. As energy standards continue to rise, the shift toward more efficient homes should prove beneficial for investors and tenants alike and yield a more sustainable rental market.