Landlords benefit from reducing buy-to-let rates | moneyfacts.co.uk

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Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 14/09/2021
Molo Finance has reduced its buy-to-let mortgage rates across selected products. This includes the following reductions on its rates for landlords with a limited company or special purpose vehicle (SPV).
These deals are available for remortgages and to purchase a new buy-to-let property. They all revert to a rate of 4.41% at the end of the initial term. 
Landlords must be no older than 85 at the end of the mortgage term and earn at least £20,000 to qualify for these mortgages. The minimum loan value is £25,001 with a maximum loan of £450,000. Each product also has the option to choose a percentage fee of 1% of the mortgage advance instead of the flat fee.  The maximum loan on these options is £1.5 million at 65% LTV and £1 million at 75% LTV. The rental income will need to be at least 125% of mortgage interest calculated at a rate of 5.50%.
Francesca Carlesi, chief executive of Molo, said: “The mortgage market has never been so competitive.
“Lowering our prices gives landlords excellent options, whether they’re purchasing a property as an individual or a limited company.
“Our new rates, combined with an entirely digital approach for getting a mortgage, give investors more flexibility and allow them to go through the borrowing process at speed while saving money with Molo.”

 

The best rates for buy-to-let mortgages from between two and five years

Landlords not operating as a limited company or SPV can choose from the following lowest buy-to-let rates.
Barclays offers a rate of 1.16% fixed (4.3% APRC) until 30 November 2023, after which it reverts to 4.59% variable. The maximum LTV is 60% and the product fee is £1,795 The minimum loan value is £35,000 and there is no rental income calculation.
Virgin Money offers a rate of 1.34% (3.8% APRC) fixed until 1 February 2025, after which it reverts to 4.54% variable. The maximum LTV is 60% and the product fee is £1,995. There is no minimum loan value. The rental income must be 145% of mortgage interest calculated at 5.50% although personal income can be considered to support a shortfall. This deal also comes with £500 cashback for those making a new purchase.
The Mortgage Works offers a rate of 1.59% fixed (3.6% APRC) until 30 November 2026, after which it reverts to 4.74% variable. The maximum LTV is 65% and the product fee is £1,995. The minimum loan value is £25,001 and the rental income must be at least 125% of mortgage interest calculated at 5.50%.

The best rates for buy-to-let mortgages for higher LTVS

The Mortgage Works offers a rate of 2.49% fixed (5.4% APRC) until 30 November 2023, after which it reverts to 5.54% variable. The maximum LTV is 80% and the product fee is 2% of the advance. The minimum loan value is £25,001 and the rental income must be at least 125% of mortgage interest calculated at 5.99%.
Virgin Money offers a rate of 1.35% (4.1% APRC) fixed until 1 February 2025, after which it reverts to 4.54% variable. The maximum LTV is 75% and the product fee is £1,995. There is no minimum loan value. The rental income must be 145% of mortgage interest calculated at 5.50% although personal income can be considered to support a shortfall.  This deal also comes with £500 cashback for those making a new purchase. 
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