Leeds Building Society has reduced rates on its fixed rate buy-to-let (BTL) deals by up to 0.25 of a percentage point.
The highlights of the offering include 2.09 per cent two-year fixed-rate for purchase only customers, available up to 70 per cent LTV, and 1.59 per cent two-year fixed-rate for those who have only remortgaged, available up to 60 per cent LTV.
The 2.09 per cent two-year offering includes free standard valuation on properties worth up to £1m, £999 completion fee and up to 10 per cent capital repayments allowed each year.
For customers who choose the 1.59 per cent two-year fixed rate product they will also benefit from the same offering as the 2.09 per cent deal. In addition, they will have a choice of fees assisted legal services or £250 cashback.
In addition to the reduced rate, the building society is offering different fee and incentive combinations across the range, including cash back.
The company said the move was driven by a desire to improve its BTL proposition.
The purchase-only mortgage will be available up to and including 30 September 2019.
Leeds Building Society operates throughout the UK, Gibraltar and Ireland and has assets of £15.9bn as at 31 December 2016.
The latest offering from the society adds to the raft of recently lowered rates on BTL deals from lenders.
According to the latest data from independent broker Mortgages for Business, fees for BTL mortgages have reached a 12-month low after falling by more than 5 per cent in the second quarter of the year.
The average flat fee for BTL products is now £1,370, down from £1,446 in this year's first quarter.
Provider view:
Jaedon Green, Leeds Building Society’s director of product and distribution, said: “We’ve made reductions across our range of two and five-year fixed-rate deals for BTL borrowers. In addition to the reduced rates, we offer different fee and incentive combinations across the range, including cashback, as part of our ongoing efforts to improve our BTL proposition.
“Earlier changes we’ve made, such as simplifying criteria and removing the minimum income requirement, have been well-received by brokers. We continue to work closely with our intermediary partners to better meet their needs, and those of their clients, in this important sector.”
Adviser view:
Carl Shave, a director at Just Mortgage Brokers, said: “The new BTL products introduced by Leeds are well priced in the market and a reduction in rates is always welcome. It will likely be a simple view from brokers, looking at the value of the initial fixed rate rather than the subsequent 1 per cent discount, but the fixed rates should source well when compared to competitors. The reduction in rates combined with the recent withdrawal of minimum income requirements should start to put the Leeds back on the BTL map for brokers.”
Charges:
£999 fee.
Verdict:
With a subdued BTL market following the recent tax changes, further reductions in rates and relaxed criteria are likely to continue as lenders look to invigorate this profitable sector of the market.
