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Coventry for Intermediaries has lowered its Base Buy to Lease (BTL) rate.
The lender says the changes benefit those looking to buy, remortgage and transfer existing BTL mortgages.
For all customer types, the new base flat rate for five years or more will be 5.5% or the product rate, whichever is higher.
For sterling remortgages, the new two- and three-year reference rate will be 5.5% or +0.1%, whichever is higher.
Meanwhile, for purchases, the base rate at two- and three-year rates will be 7.0% or +2.0% of the product rate, whichever is higher.
Jonathan Stinton, head of intermediation at the Coventry Building Society, says: “We have recalibrated our base BTL rate to reflect current market conditions, which can be especially helpful for those looking for a pound for pound remortgage.”
“We are committed to helping our reseller partners take care of their customers and equally want to support the private rental sector to help provide housing for those who choose to rent.”
Reece Schofield, Managing Director of Peak Mortgages and Protection, comments: “Perhaps normality is being restored in the BTL world.”
“Since September, it has become much more difficult to close deals with previously easily funded lenders because the numbers and how lenders calculate whether a property is ‘self-financing’ just doesn’t add up when lenders ‘check references’ of a potential raise. rates can cause the property to not pay for itself.
“Now that it looks like the world won’t end with rate hikes, it’s good to see lenders working hard behind the scenes to make it easier to get BTL mortgages. Renters can also benefit from this, as some landlords have actually had to increase their rent just to keep housing affordable. We hope that reducing this pressure should help tenants.”
EHF Mortgages Managing Director Justin Moy adds: “The popularity of BTL mortgages over the past six months has been significantly lower than in previous years as rates have risen substantially and made it almost impossible to place new mortgages without large deposits due to the interest coverage ratio. . (ICR) needs.”
“BTL rate cuts and benchmarks, while housing deals have moved in the opposite direction, show that lenders need to bring competitive and, more importantly, workable deals to market in order to support landlords looking to refinance or buy.”
“Changes like this from Coventry BS and the Foundation Home Loans cut launched today will do a lot to help brokers meet their landlords’ borrowing needs and make this market more positive and vibrant.”
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