Kensington has announced a reduction in mortgage rates by up to 25 basis points, impacting both residential and buy-to-let borrowers. This move comes as other lenders, including April and The Mortgage Lender, also lower their prices, which could provide more affordable options for landlords and homeowners alike.
TL;DR: Kensington has cut mortgage rates by up to 25bps; this affects residential and buy-to-let borrowers, making financing more accessible.
How Are Buy-to-Let Mortgage Rates Changing?
Kensington’s most significant reductions are found in its residential mortgage range, with Resi Select rates dropping by up to 25bps across various fee options and loan-to-value (LTV) ratios. For buy-to-let borrowers, selected 75% LTV rates have also decreased on Prime, Prime eKo, and Core products. April Mortgages will implement rate cuts on several fixed-rate products starting tomorrow, with five-year fixed rates beginning at 5.45% for purchases at 60% LTV.
What Should Landlords Expect from Buy-to-Let Mortgages?
Landlords can benefit from the new offerings, particularly from The Mortgage Lender, which has reduced rates by up to 15bps on buy-to-let deals, including those for houses in multiple occupation. New limited edition products are also available, with two-year fixes starting at 3.79%. Rely has made its buy-to-let ranges more accessible by lowering the minimum loan size to £25,001, although specific products may have higher minimums.
What This Means for Borrowers
For borrowers, these reductions present an opportunity to secure more competitive rates, especially for those looking to remortgage or purchase property. With five-year fixed rates for remortgage at 6% for 90% LTV, the changes could lead to significant savings over time. Borrowers should consider reviewing their options in light of these new rates.
Frequently asked questions
How can I find the best buy-to-let mortgage rates?
Utilising a buy-to-let mortgage rates comparison tool can help you find competitive options tailored to your needs.
What factors affect my eligibility for a buy-to-let mortgage?
Your credit score, rental income potential, and existing financial commitments will influence your eligibility for a buy-to-let mortgage.