Buy to Let Mortgage Rates and Fees Falling

Buy to let mortgage rates and fees seem to be falling, as two of the larger high street banks launch new ranges with lower mortgage rates or fees on both buy to let and residential loans.

Barclays has introduced a higher value buy to let range, with individual loans available up to £2 million at a maximum 60 per cent loan to value (LTV).

The bank has also cut mortgage rates many other residential and buy-to-let loans.

The new Barclays range has improved mortgage rates such as a 1.54 per cent two-year fixed rate at 60 per cent LTV with a £1,950 fee.

They are also offering a 2.24 per cent five-year fixed rate mortgage at 60 per cent LTV, also with a £1,950 fee.

Barclays Mortgages director Craig Calder said: ‘The changes we are making will further strengthen our mortgage proposition by offering our comprehensive suite of buy-to-let and residential products to an even wider range of mortgage customers.’

Meanwhile Santander has reduced fees on its 60 per cent and 70 per cent LTV buy to let deals following the tax changes that it says have ‘slowed’ the market.

Fees have been reduced by £500 to £1495 on its 60 per cent LTV 2-year fixed buy to let and 75 per cent 2 year fixed buy to let products to help support buy to let investors.

Santander has also cut rates on a range of residential products. Five-year fixes are now available at 1.79 per cent up to 60 per cent LTV and 1.99 per cent up to 70 per cent LTV, both with product fees of £999.

Brad Fordham, Santander for Intermediaries managing director, commented: ‘The BTL market has slowed in recent months, but appetite for investing in property remains. We hope that by reducing the product fee on our BTL products, we will support this area of the market and help those who want to invest make their ambition become a reality.’