Landlords can now benefit from a rate reduction of up to 0.35% on a selection of 2, 3 and 5 year terms on TSB’s buy to let range from this week onwards.
The lender has revealed a host of changes to many of its core products, including rate cuts of up to 0.3% for residential borrowers, with the biggest reduction being applied to its homemover 2 year fixed rate product, seeing rates drop from 4.09% to 3.79% for customers with a loan to value (LTV) of between 90% and 95%.
As well as this, TSB has added a new 3 year fixed rate mortgage to its range, with a new rate of 3.98% for LTVs between 90 and 95% with a product fee of £995.
Other residential mortgages with newly cut rates also includes those for homemovers and customers remortgaging, including the lender’s current 2, 3 and 5 year fixed rate mortgages and its 2 year tracker product.
TSB is not the only lender to update its residential range this week, however, with Coventry Building Society also launching a new range of 5 year fixed rates for residential mortgages from 65% to 95% LTV. With rates now starting from 2.39%, the lender is offering a choice between rates of 2.39% at 65% LTV or 2.49% at 75% LTV, both with a £999 arrangement fee. The lender has assured all residential products are booking fee-free and include standard valuation of up to £670.
The buy to let market has undoubtedly been under a lot of pressure lately, all thanks to the stamp duty hike and tax changes seen at the beginning of the month. Although expected to deter investors from the market, many lenders have continued to cut rates, with the fixed rate sector experiencing the most beneficial reductions so far for buy to let mortgages.
The average 2 year fixed rate has now fallen by 0.71% in just 2 years to 3.32%, while the average 3 year fix has dropped to 3.87% and by 0.76% to 4% for a 5 year fixed rate.