Kensington Mortgages 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 Mortgages and The Mortgage Lender (TML), also adjust their pricing, potentially benefiting landlords and investors seeking competitive rates.
TL;DR: Kensington has reduced mortgage rates by up to 25bps, affecting residential and buy-to-let borrowers; April and TML are also lowering rates, offering new opportunities for landlords.
What Changes Have Been Made to Buy-to-Let Mortgages?
Kensington’s most significant cuts are within its residential mortgage offerings, with Resi Select rates dropping up to 25bps across various fee options and loan-to-value (LTV) ratios. For buy-to-let borrowers, selected 75% LTV rates on Prime, Prime eKo, and Core products have been reduced. Additionally, TML has trimmed rates by up to 15bps on its buy-to-let deals, including those for houses in multiple occupations and multi-loan arrangements.
How Will This Impact Buy-to-Let Landlords?
The recent rate cuts provide landlords with more attractive financing options, particularly for those looking to remortgage or purchase new properties. April Mortgages will introduce lower five-year fixed rates starting at 5.45% for purchases at 60% LTV and 5.75% for remortgages. TML’s new limited edition products feature two-year fixes starting at 3.79%, enhancing affordability for landlords seeking to expand their portfolios.
What Should Borrowers Watch Next in Buy-to-Let Mortgages?
Borrowers should keep an eye on further rate adjustments from other lenders as the market continues to evolve. The introduction of new limited edition products and competitive pricing may lead to more opportunities for securing favourable mortgage terms. Landlords should assess how these changes align with their investment strategies and consider using tools like the BTL affordability calculator to evaluate their options.
Frequently asked questions
What are the new rates for buy-to-let mortgages?
Kensington has reduced rates on selected 75% LTV products, while TML’s new two-year fixed rates start at 3.79%.
How can landlords benefit from these changes?
Lower mortgage rates enhance affordability, allowing landlords to reduce borrowing costs and potentially increase their investment portfolio.