It also improves ICR calculation for two-year fixes
Specialist buy-to-let lender CHL Mortgages has slashed its fixed rates by up to 39 basis points (bps).
The lender’s individual and limited company two-year fixed rates were reduced by 35bps and now start from 5.40%, while five-year fixed rates were cut by 34bps and now start from 5.27%.
The largest rate reduction of 39bps was on the two-year fixed rate products for houses in multiple occupation or multi-unit freehold blocks, now available from 5.41%, with five-year fixed rate options cut by up to 36bps and now starting from 5.30%.
In addition, CHL Mortgages reduced the product rates on its refurbishment range by up to 36bps, with five-year fixed rates starting from 5.23%. There were also further price reductions across its short term let product options.
CHL Mortgages has also made changes to its interest cover ratio (ICR) calculation for its two-year fixed rates products.
The buy-to-let lender said all five-year fixed rate products will continue to be calculated at pay rate.
“With long term interest rates showing signs of stability, we are seeing this latest round of welcome rate cuts,” commented Ross Turrell (pictured), commercial director at CHL Mortgages.
“For the buy-to-let market, we also have rents improving, tenant affordability increasing as wage rises kick in, and a softening of house prices in real terms. This has improved the prospects for the landlord, and we should see the sector start to gradually move forward as we head into 2024.”