It is no secret that the restrictions placed on Buy-to-Let landlords are stricter than ever before which is why it is more important than ever to keep a close eye on the marketplace to see if there is value in switching to another lender. Making the switch can often save the landlord significant funds and at a time when margins are being squeezed this can make a significant difference to profit margins.
The good news is that some lenders continue to cut rates even during these challenging times and we have just found out that Barclays have reduced both their residential and Buy-to-Let mortgage rates with more lenders are following suit.
As of 30th August, Barclays Bank has cut its BTL product range and this includes both two and five-year deals. For example, the two-year 75% LTV deal was sitting at an already reasonable 1.91% with a £1950 product fee. This has now been cut to 1.79% with the fee-free equivalent having been reduced to 2.65% from 2.68%. This is even better news when you consider the fact that these products are available for both purchases and remortgages.
Additionally, the lender has also decided to revise its cashback options on selected remortgage products. This is also good news for the active landlord as the cashback has been increased from £200 to £300 on the “Great Escape” product range which is excellent for those landlords who are looking to use a cashback product to offset some of the costs associated with a new purchase or remortgage.
Of course, having the freedom to choose from more than one lender is always going to appeal to buy-to-let landlords and other lenders have also stepped up to the plate to reduce their rates over the last couple of weeks as well. Kent Reliance is definitely less prolific than Barclays but this lender has also made some notable changes to its BTL range.
The cuts have been made to the lender’s five-year fixed rate mortgages with LTV of 75-80%. The 75% product is now sitting at 3.79% and the 80% product is now sitting at 4.39% and both of these revised products have a 2% fee on its standard range. These products will naturally not appeal to everyone in the marketplace but for landlords with specific requirements these could be the perfect choice.
We cannot stress enough how important it is to keep an eye on the Buy-to-Let market especially if you’re an experienced landlord with several properties in your portfolio. Often, refinancing every couple of years to get the best combination of mortgages is the most effective solution when it comes to making a profit. Government restrictions are strict so giving yourself the best outcome is definitely the way forward.
Of course, not every landlord has the time to keep a close eye on the market which is why approaching a broker to help you is an effective solution. For example, we will only ever charge if we produce you an offer and we often have foreknowledge of when the rates are about to change within the marketplace.
If you are a landlord looking to refinance then get in touch today and we can help you get the best deal on the UK marketplace – 0345 873 1234 or email info@specialistmortgages.uk.com