Buy-to-let (BTL) landlords are in for a treat as two major lenders, Keystone and BM Solutions, have slashed interest rates on their mortgage deals.
Keystone has taken the lead, implementing cuts of up to 25 basis points (bps) across various loan products. The repricing extends to their summer specials range, deals tailored for houses in multiple occupation (HMOs), multi-unit properties, expats, and more. As a result, their two-year fixed rates now start from a competitive 3.54%, while five-year fixed rates begin at 4.59%.
Meanwhile, BM Solutions has also announced rate reductions, reaching up to 16bps. The most significant price cuts include:
A fee-free five-year fixed rate for purchase at 75% loan-to-value (LTV) reduced by 16bps from 4.95% to a tempting 4.75%.
A similar deal with a £1,499 fee, also reduced by 16bps, dropping from 4.74% to 4.58%.
This wave of BTL rate cuts comes as welcome news for landlords, following a period of increasing interest rates. Data released by Moneyfacts reveals that average fixed rates are now around 100bps lower than they were a year ago, when the Bank of England base rate first rose to 5.25%.
The recent rate reductions reflect a broader shift in the mortgage market, with lenders increasingly vying for customers in a more competitive landscape. Landbay has also joined the trend, cutting BTL rates by up to 40bps, while Aldermore has introduced new products to their portfolio.
These developments present a prime opportunity for BTL landlords to explore refinancing options or secure new mortgages at more attractive rates. With lenders vying for business and rates on the decline, the current market favours landlords seeking to reduce their borrowing costs and boost their investment returns.