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Tag: BTL

  • Coventry BS and Rely Reduce Mortgage Rates: What to Know

    Coventry BS and Rely Reduce Mortgage Rates: What to Know

    Coventry Building Society and Rely have announced cuts to their mortgage rates, impacting both residential and buy-to-let (BTL) borrowers. These reductions, which reach up to 0.15% for residential and 0.08% for BTL products, are significant for first-time buyers and landlords seeking competitive financing options.

    TL;DR: Coventry Building Society has reduced mortgage rates by up to 0.15% for residential mortgages and up to 0.08% for BTL; this move offers more affordable options for borrowers and landlords.

    What are the new mortgage rates?

    Coventry Building Society has introduced a two-year fixed mortgage at 90% loan to value (LTV) for first-time buyers, now priced at 4.98%. This deal includes a £999 fee and £500 cashback, making it an attractive option for new homeowners. Additionally, the mutual offers a fee-free five-year fixed mortgage at 75% LTV for limited company BTL remortgages on properties with an Energy Performance Certificate (EPC) rating of A to C, now available at 5.41%.

    How have Rely’s rates changed?

    Rely, a specialist BTL lender, has reduced its rates by as much as 0.25%. Notably, their one-year fixed mortgage at 75% LTV with a 3% fee is now at 3.83%. They also offer a two-year fixed mortgage at 55% LTV with a 5% fee, priced at 3.51%, alongside a five-year fixed option at 4.68%.

    What does this mean for borrowers and landlords?

    These rate cuts are particularly beneficial for first-time buyers and landlords looking to refinance or invest in new properties. The reduced rates provide a more accessible entry point for new homeowners while offering competitive options for landlords seeking to enhance their portfolios. Brokers will also find these changes advantageous, as they can present more appealing mortgage products to their clients.

    Frequently asked questions

    What should I consider before applying for a mortgage?

    Before applying, assess your financial situation, including your credit score, income, and existing debts. It’s also wise to compare current mortgage rates to find the best deal for your needs.

    How can I compare mortgage rates effectively?

    Utilise online tools and resources to compare mortgage rates from different lenders. Look for factors such as fees, LTV ratios, and the overall cost of borrowing to make an informed decision.

  • Foundation Expands BTL Offering with New Products and Lower Rates in 2026

    Foundation Expands BTL Offering with New Products and Lower Rates in 2026

    As of May 2026, Foundation has expanded its Buy-to-Let (BTL) offering with the launch of several new products and a reduction in BTL rates. These changes include a new green standard HMO product, five-year fixes for MUFBs and holiday lets, and a two-year fix for expat borrowers, all with competitive rates and fees.

    Details of the New BTL Products

    Foundation’s green standard HMO product is priced at 5.59% with a 4% fee. It comes with £500 cashback, no application fee, and is open to properties with an Energy Performance Certificate (EPC) rating of A to C. For MUFBs and holiday lets, Foundation has introduced a pair of five-year fixes, each with a flat fee of £4,995. The MUFB product is priced at 6.24% and the holiday let option at 6.34%. For expat borrowers, a two-year fix has been added to the F2 range, priced at 6.34% with a 1.5% fee. Within its F1 range, for borrowers with an almost clean credit history, a green five-year fix has been launched at 5.49% with a 5% fee.

    Impact on Borrowers

    Scenario 1: Landlord with a Green Standard HMO

    A landlord with a £250,000 interest-only BTL mortgage for a green standard HMO at 75% LTV would see their monthly cost drop from £1,432 to £1,389 due to the new rate of 5.59%. This equates to a saving of £43 per month or £516 per year.

    Scenario 2: Expat Borrower with a Two-Year Fix

    An expat borrower with a £200,000 repayment mortgage at 75% LTV would see their monthly payments drop from £917 to £875 with the new two-year fix rate of 6.34%. This results in a saving of £42 per month or £504 per year.

    Market Context

    These changes come at a time when the Bank of England base rate is 3.75%, having increased from 3.5% six months ago. The new rates offered by Foundation are competitive in the current market, particularly for landlords and expat borrowers. The introduction of green products also aligns with the increasing focus on energy efficiency in the UK property market.

    Frequently Asked Questions

    What is the new green standard HMO product?

    The new green standard HMO product is a mortgage product with a rate of 5.59% and a 4% fee. It offers £500 cashback and no application fee, and is available for properties with an EPC rating of A to C.

    What are the new five-year fixes for MUFBs and holiday lets?

    The new five-year fixes for MUFBs and holiday lets are mortgage products with flat fees of £4,995. The MUFB product has a rate of 6.24% and the holiday let product has a rate of 6.34%.

    What is the new two-year fix for expat borrowers?

    The new two-year fix for expat borrowers is a mortgage product in the F2 range with a rate of 6.34% and a 1.5% fee.

    What is the new green five-year fix in the F1 range?

    The new green five-year fix in the F1 range is a mortgage product for borrowers with an almost clean credit history. It has a rate of 5.49% and a 5% fee.