Lenders Accord and Vida have both altered the criteria of some of their Buy-to-Let (BTL) mortgage ranges while also making some reductions to their mortgage interest rates. These changes and reductions are likely in order to help stimulate demand among BTL investors at a time when investment in the PRS isn't growing as fast as it has, or even as it could, considering the still high level of demand among tenants.
While product updates and rate reductions might encourage a little more business, the changes are also beneficial to the lenders. In particular, Vida Home Loans has simplified some of its criteria listings to assist intermediaries searching for specialist mortgage products for their clients.
Vida BTL mortgage changes
The lender works across the residential mortgage market and its BTL range has been simplified and now has a much-reduced product variation. This change has allowed the lender to offer lower mortgage interest rates across its BTL mortgages for property investors.
Specifically, Vida Home loans has lowered its rates on products for:
- First-time buyers/first-time landlords.
- Loans over £1million.
- HMOs and MUBs.
The specialist lender has also removed its cap of 100 properties per portfolio, while self-funding TL landlords can enjoy an easier, but still secure, income and verification process. In addition to that and highlighting its position as a specialist mortgage lender, the business has altered and simplified its credit status tier structure. This should help mortgage intermediaries more easily find the right product for their clients who have impaired credit and wish to improve their credit profile.
“This is the most significant product change since we launched 3 years ago,” said Louisa Sedgwick, Director of Sales, Mortgages, Vida Homeloans.” Vida’s aim is to make specialist mortgages simple and we are always looking for ways to streamline the broker experience and make life easier for our customers to do business with us.”
“We continue to see strong demand from our intermediary partners and we want to continue to grow our lending and offer a great service to brokers and customers. These changes are a planned and necessary part of that process,” she added.
Accord reduces BTL mortgage interest rates
Following on from Vida’s BTL mortgage range changes, Accord has also made some alterations to its product range for BTL borrowers. The lender has reduced its mortgage interest rates by 5 basis points across its 80% loan-to-value products for BTL investors.
That change means that Accord is now offering a a two-year fixed rate mortgage at 3.31% with a fee of £950, or if you prefer fee-free this is also available but at a rate of 3.85%. IF you want a 5-year fixed rate BTL mortgage, you can secure one at a rate of 3.63% and for a fee of £950.
“We know the present uncertainty in the market is impacting decisions, so following recent improvements to our criteria, we’re continually reviewing the range to offer landlords the most competitive rates,” said Simon Garner, product manager at Accord Buy to Let.
These rates reductions for BTL mortgages are good news for property investors who want to take advantage of stagnant prices but still high rental demand to expand their portfolio. However, even though some of their product ranges now boast lower interest rates, there could still be better deals out there for your specific circumstances.
Take a look at what BTL mortgages are available right now and you might be pleasantly surprised!