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Coventry reduces BTL reference rates

ended 17. March 2023

Coventry today announced it has reduced its “BTL reference rates, so that your BTL clients may have the opportunity to borrow more". Following on from this, free PR platform, Newspage, asked brokers whether buy-to-let deals are starting to get easier to place. 

 

2 responses from the Newspage community

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Editor
Justin Moy
Managing Director at EHF Mortgages
The popularity of buy-to-let mortgages overt the past six months has been significantly lower than the preceding years, as rates have increased substantially and made it near impossible to place new cases without large deposits due to Interest Cover Ratio (ICR) needs. Lowering BTL rates and stress tests, whilst residential deals have moved in the opposite direction, shows that lenders need to bring competitive and, more importantly, workable deals to market to support the landlords looking to refinance or purchase. Changes like this from the Coventry BS, and the Foundation Home Loans rate reductions launched today, go a long way to help brokers service their landlords' borrowing needs, and look to get that market more positive and active.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
It could be that normality may be resuming in the buy-to-let world. Since September, previously easy-to-finance deals have proved much trickier to place with a lender because the numbers and how lenders calculate whether a property is 'self-funding' just haven't stacked up when the lenders 'stress test' whether potential rate rises would make a property not pay for itself. Now that it doesn't appear the world is going to end with rate rises, it's great to see lenders working hard behind the scenes to make buy-to-let mortgages easy to obtain. Tenants could also benefit from this as some landlords have genuinely had to increase rents just to get a case to fit on affordability. Reducing that pressure should hopefully help tenants.