NatWest buy-to-let mortgage rates have dropped
NatWest buy-to-let mortgage products have been hit by some significant rate reductions this morning, giving a boost to both current and aspiring buy-to-let landlord investors. Over the last few years the buy-to-let market has taken a bit of a beating to put it lightly. Increases in the cost of owning property, increases in buy-to-let mortgage rates, and tightening of buy-to-let mortgage affordability with lenders has meant that profit margins have narrowed significantly. Increasingly, being a for-profit buy to let owner has been becoming less and less appealing. However, NatWest has announced some significant rate decreases to their NatWest buy-to-let mortgage products. As well as these changes, they have also made changes to some residential purchase and remortgage products. In this article I will explore the changes and the impact they could have on borrowers.
NatWest Buy-To-Let Mortgage Rates Decrease
Although 17 rate changes were announced by NatWest this morning, by far the most interesting ones to me were the fairly large rate decreases in NatWest buy-to-let mortgage products. NatWest have sensationally announced rate drops of up to 0.60% on selected 2 and 5 year buy-to-let purchase products and up to 0.47% rate drops on buy-to-let remortgages. This means that both buy-to-let landlords looking to remortgage their current property to either move to a more completive rate and increase the profit on the property, or release equity from their investment could benefit from significantly lower rates. And it also means that landlord or aspiring landlords looking to add a new property to their portfolio can benefit from much lower buy-to-let mortgage rates than were available only yesterday. The buy-to-let purchase rates start from 3.69% and the remortgage rates start from 3.93%.
NatWest Buy-To-Let Mortgage Rules
Now, not everyone can benefit from these buy-to-let rate decreases. Anyone looking to make the most of the rate drops must still meet NatWest’s buy-to-let criteria. For example, you must have at least 25% deposit or 25% equity in your property to get a buy-to-let mortgage with NatWest. You must be borrowing at least £25,000 and no more than £3,000,000. And you must of course meet the minimum mortgage affordability for a buy-to-let mortgage based on your own income, and the rental income that you receive or expect to receive. Both of these can be calculated by your mortgage advisor.
Other NatWest Mortgage Rate Changes
Along with the changes to buy-to-let mortgage product rates, NatWest have also announced changes to the following mortgage types:
- Residential Purchase Rates: Rate decrease of up to 0.12% on selected 2 and 5 year deals.
- Residential Purchase Rate – High value: Rate decrease of up to 0.12% on selected 2 and 5 year deals.
- Residential Purchase – Tracker: Rate decrease of up to 0.12% on selected 2 year deals.
- Residential Purchase – High value tracker: Rate decrease of up to 0.12% on selected 2 year deals.
- Remortgage: Rate decrease of up to 0.12% on selected 2 and 5 year deals.
- Remortgage – High value: Rate decrease of up to 0.12% on selected 2 and 5 year deals.
- Remortgage – Tracker: Rate decrease of up to 0.12% on selected 2 year deals.
For full details on these other products and their rates, please feel free to give our team of advisors a call to explore your options.
