We’ve lowered our Buy to Let reference rates
BTL reference rates reduced
We’ve reduced our BTL reference rates, so that your BTL clients may have the opportunity to borrow more.
The changes benefit those looking to purchase, remortgage, and port their existing buy to let mortgage.
Like for like product transfers do not require a stress test.
- Stress rate, for all customer types, on a 5+ year fixed rate – 5.5% or the product rate, whichever is higher.
- Stress rate, for pound for pound remortgages, on 2 and 3 year rates – 5.5% or the product rate +1.0%, whichever is higher
- Stress rate, for purchases, on 2 and 3 year rates – 7.0% or the product rate +2.0%, whichever is higher
Remember, our BTL affordability is only based on the applicable ICR calculation, with no minimum income requirements.
And for selected remortgages your clients have the option to choose between cashback or our RMTS.
For more information on the changes we’ve made visit our website.
Affordability calculator update
As part of our ongoing affordability review to reflect the current economic outlook, we are updating our affordability calculator.
Changes will come into effect on Wednesday 22 March.
To secure your client’s application using the current affordability result, a full mortgage application must be submitted by 8pm on Tuesday 21 March. All applications received after this time will be assessed with our updated affordability calculator.
We’re updating our rates
In line with our commitment to give you two days’ notice of product closures, we will be closing products at 8pm Wednesday 22 March.
We will be launching new products at 8am Thursday 23 March.
Here’s what’s changing:
Owner-Occupied (new business, porting, further advances and product transfers)
- Withdrawing all standard 50% LTV fixed rates (Excl. Interest-only & Offset Interest-only)
- Reducing all standard new business fixed rates up to and including 75% LTV (Excl. Interest-only, Offset & Offset Interest-only)
Buy to Let (new business, porting, further advances and product transfers)
- Reducing all BTL & Portfolio Landlord BTL fixed rates
New business cases
Remember, an AIP does not secure a closing product. If an AIP refers, we can’t guarantee we’ll be able to review it before the product is closed.
So, if your AIP does refer, you should copy the case and click through to full mortgage application to secure the product. Applications received after 8pm Wednesday 22 March will not be accepted.
For product transfers the following will apply:
Online product transfer cases will need to be fully submitted by 8pm Wednesday 22 March.
Product transfer paper application packs already provided need to be fully completed, signed by all applicants, and returned by 8pm Wednesday 22 March.
Pending product transfer paper application packs and requests received between today’s date and 8pm Wednesday 22 March need to be fully completed, signed by all applicants, and returned within 48 hours of the date of illustration.
We’ve updated our product range
We know the current market can feel tough, particularly for your landlord clients or clients who might be facing higher rates than they’ve perhaps been used to. In a challenging market we want to support you and the market with options, so we’ve updated our range.
Plus, last week we also reduced our Buy to Let reference rates so that your Buy to Let clients may have the opportunity to borrow more.
What you need to know
- We’ve reduced all BTL and portfolio landlord fixed rate products by up to 1%
- We’ve introduced a competitive range of 80% LTV residential products
- We’ve reduced all new business standard fixed rates across 65%-75% LTV