Since the Bank of England cut the rate to 5%, many lenders have been galvanised in to reducing their buy to let lending rates. This means landlords can now borrow more on their investments as well as potentially lower monthly payments on remortgages. Capital home loans have pushed the envelope and introduced a sub 3% deal at 2.93% for 2 years with 7% fee. This is only for 70% LTV. Even with fees added, this could be useful for some landlords looking to generate cashflow or maximise their borrowing.
An alternative is the TMW’s 3.59% with 3% fee. Taking the ICR and default rates the loan turns out to be only slightly lower.
On the 5 year rate terms Capital home loan still scores the highest, again with 7% fee. But only for loans above £385,000. There are othesr such as TMW can provide a better value for the customer for loans under £385,000 at 70% LTV. Another option is the Virgin Money at 3.93% with 3% fee.
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