Initiatives include cashback, use of AVMs, and exclusive rates for energy efficient properties
Three mortgage lenders have unveiled new initiatives aimed at enhancing their product offerings and providing more options for property investors.
LendInvest Mortgages has introduced new incentives for its buy-to-let mortgage range. Customers who complete a buy-to-let mortgage through LendInvest can now receive up to £350 cashback.
The lender is also offering up to 10 basis points (bps) off their next mortgage, reducing overall borrowing costs. Application and valuation fees will now be paid upfront, which LendInvest says will streamline the mortgage process. These new incentives apply to new applications only.
“We understand the unique challenges faced by portfolio landlords,” said Sophie Mitchell-Charman (pictured left), commercial director at LendInvest. “This cashback feature provides immediate financial relief and enhances cash flow, allowing landlords to better manage expenses or invest in further property improvements.”
In a similar move, property lender TAB has announced discounted rates on its mortgage products, with new rates starting at 3.74% per annum over the Bank of England base rate, applicable to both residential investments and commercial property. It has also lowered its bridging loan rates to start at 6% per annum over the base rate.
In addition, TAB has introduced the use of automated valuation models (AVMs) for residential properties valued up to £1 million and up to 60% loan-to-value (LTV). The lender will now utilise title indemnity insurance across its residential bridging products, which is expected to speed up deal completion times and reduce costs for borrowers.
“Over the last few months, we have worked with our clients to understand their priorities and have designed products to meet their needs,” said Duncan Kreeger (pictured centre), founder and chief executive of TAB. “These changes are part of our ongoing goal to support property investors with market-leading products and exceptional service.”
Meanwhile, buy-to-let lender Zephyr Homeloans has rolled out a new two-year fixed rate mortgage product for properties with an energy performance certificate (EPC) rating of ‘A’ to ‘C’. Rates start at 5.89% for standard mortgages and 6.09% for houses of multiple occupancy (HMO) and multi-unit freehold blocks (MUFBs), both up to 80% LTV with a 3% fee.
For properties with a ‘D’ or ‘E’ EPC rating, rates start at 5.99% for standard mortgages and 6.19% for HMOs and MUFBs, also up to 80% LTV with a 3% fee.
“We’re seeing increasing interest from brokers in the HMO and MUFB sector,” said Paul Fryers (pictured right), managing director at Zephyr Homeloans. “In launching these products, we’re able to help brokers support their landlord clients to develop their business in this specialist market segment.”
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