YBS Commercial Mortgage and other lenders have cut buy-to-let (BTL) rates after the Tenants’ Bill of Rights became law earlier this week.
The commercial lender’s specialist product for mixed-occupancy housing (HMOs) – properties with up to six bedrooms – offers maximum price reductions of up to 0.40 per cent.
Borrowers can now enjoy five-year fixed rates with interest rates reduced from 5.40% to 5.00%, loan-to-value (LTV) ratios of up to 75%, and 2% fees.
The lender has also reduced rates for its business owner-occupiers, who can now secure a five-year fixed at a competitive 6.40% rate, down from 6.64% on borrowings over £1m, up to 75% LTV, and charge 2% fees.
YBS Commercial has also reduced rates across its BTL product range by 0.20%, with highlights including offering buy-to-let customers a five-year fixed rate at 4.25%, down from 4.45% at 70% LTV with a fee of 5%.
Meanwhile, its commercial investment property range is now 0.15% cheaper.
Angela Norman, managing director of YBS Commercial, said: “We are proud to be delivering even greater value with our latest rate reductions and product enhancements.
“These changes reflect our continued commitment to providing brokers and their clients with competitive solutions that meet real-world needs.”
“Whether an owner is expanding their portfolio, seeking stability as an investor, or a business owner planning for growth, our updated product line is designed to help them move forward with confidence.”
Meanwhile, Paragon Bank has also lowered interest rates on its single standalone (SSC) property BTL mortgages, in addition to adding a five-year fixed-rate product with a 1.50 per cent fee, among other changes.
All BTL mortgages in Paragon’s core range available to purchase or remortgage SSC properties have been reduced by 15 basis points for new customers.
For SSC properties with EPC ratings A to C, the LTV is as high as 80%, with current interest rates starting from 3.14% and five-year fixed rates rising to 4.14%.
Additionally, a 1.5% fixed charge option has been added to the five-year fixed-rate BTL mortgage range for SSCs, HMOs and multi-unit blocks (MUBs). The products have an LTV of 75% and rates for 1.50% fee products start at 4.90%.
Paragon has also reduced the price of SSC limited edition products, with LTV of up to 70%, and is offering £500 cashback.
The lender’s two-year fixed 4% fee product now starts at 3.20% for properties with EPCs A to C.
James Harrison, product manager at Paragon Bank, commented: “Reducing interest rates on all mortgages for SSC properties provides more choice for landlords who remain very active in the market.”
“In addition, our market analysis found that lower fee products are popular, so we are providing more choice by adding an additional 1.5% fee option to our five-year fixed range to help brokers match the right product for each application.”
Molo also delivered a rate cut of up to 14 basis points on its UK resident BTL two-year fixed rate product.
For standard BTL products, two-year fixed rates now start from 2.54%, while five-year fixed rates start from 4.34%.
These apply to individual and limited company owners.
Molo Distribution Director Martin Sims said: “Brokers play a key role in helping landlords access the right finance. By lowering rates, we are giving intermediaries greater choice and greater flexibility to support their clients – from first-time investors to experienced portfolio landlords.”
Market Financial Solutions has cut prices on its range of commercial and semi-commercial BTL mortgages, while enhancing its Fusion Premium offering.
The new rate reduction applies to commercial and semi-commercial BTL fixed rate tiers.
In addition to the rate cut, Market Financial Solutions also made several updates to its Fusion Prime product.
Borrowers can now enjoy rolling interest terms of up to nine months and deferred interest options of up to 2%.
Launched in September this year, the Fusion Premier loan series allows large residential property portfolios to be consolidated under a single loan at a lower annual interest rate.
Paresh Raja, CEO of Market Financial Solutions, explained: “The commercial real estate market has faced significant challenges in recent years. However, we are now starting to see encouraging signs of recovery, with investor confidence gradually returning and demand stabilizing in key sectors.”
The Tenants’ Rights Bill, which will ban no-fault evictions and “rebalance” the relationship between England’s 11 million tenants and 2.3 million landlords, received royal assent on Monday, the government said.
The wide-ranging bill introduces reforms to the private rented sector that were first promised by the Conservatives in their 2019 election manifesto.
