Precise Mortgages cuts buy-to-let borrowing rates
A number of mortgage brokers will be offering cheaper buy-to-let loans provided by Precise Mortgages from today after the lender made cuts across the buy-to-let product range it has made available to brokers.
The lender is looking to strengthen its specialist proposition in the buy-to-let sector and increase its market share by making cheaper loans available to buy-to-let landlords investing in houses in Multiple Occupation (HMO) as well as those investing in property through a limited company.
Highlights of the range include a 0.6% cut to HMO rates, limited company rates have been reduced by up to 0.55%pa, a new two-year fixed rate at 2.79% with a 1.5% product fee, as well as rental calculation based on 125% of the higher of the pay rate or revert rate.
Alan Cleary, managing director of Precise Mortgages, said: “Traditionally the summer months can see business levels soften but we want to increase our market share and have positioned our new buy to let range to achieve that objective.”
Jane Benjamin, Head of Relationship Management at Sesame Bankhall Group, added: “These new products should be attractive to landlords who are struggling to get a buy to let mortgage from high street lenders. At a time when many landlords are uncertain about how the recent tax changes will impact on them, as well as not knowing when the next interest rate change is likely to occur, the stability of a fixed rate, coupled with the lower Product Fee will make these products attractive to a wider range of customers.”