In a move that seems to confirm many experts’ opinions on the current direction of the mortgage market, a major mortgage lender has announced a series of interest rate cuts across its buy to let mortgage range to take place today (12 March 2014).
NatWest Intermediary Solutions, the intermediary mortgage arm of the RBS group, has slashed the rates on a number of purchase and remortgage deals that brokers can recommend to their clients by up to a quarter of a percent.
The cheapest two-year deals offered are decreasing from 3.59% (fixed) and 3.49% (tracker) to 3.39% and 3.29% respectively. Both products carry a £1,995 fee.
Fee-free options are also available, at 4.25% (fixed) and 4.15% (tracker), down from 4.49% and 4.39%.
All of these products are available at up to 75% LTV.
In addition, NatWest have two five-year fixed rate deals that are completely new to the market – a 60% LTV mortgage available for 3.99%, and a 75% option available for 4.39%. A £1,995 arrangement fee applies to both deals.
This announcement comes alongside a raft of increases in the lender’s residential mortgage range, indicating the truth in the predictions made by many commentators as to the direction that the mortgage market is currently taking.
The recent economic recovery has prompted speculation as to when interest rates will begin to rise, and the residential mortgage market has seen many long-term fixed rates increase or disappear in recent weeks.
In addition, the Mortgage Market Review – a framework of strict new rules and restrictions for regulated mortgage customers – will come into force on 26 April, and it is widely held that mortgage lenders will begin to see a drop-off in residential business after this date as budding homeowners find it even tougher to qualify for a mortgage.
As a result of this, lenders are hoping to entice more buy to let borrowers in order to accommodate what they perceive will be a drop-off in residential business over the coming months. Buy to let rates have therefore remained resilient, even at the expense of lenders’ margins.
This announcement from NatWest will be a welcome one for landlords, who can rest assured that buy to let rates will continue to be competitive for the foreseeable future.
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