October has truly been the month for rate instability in my opinion. None of us wanted rates to fluctuate as much as they have over the last month or so, and I don’t think that I was the only one who thought that we might at least enjoy some stability until the end of the year. However, in the last 24 hours Metro Bank has announced reductions across its two-year UK buy-to-let mortgage rates range, lowering rates by 0.30%. This rate cut includes both individual and limited company BTL mortgage products. Great news, right? In contrast, TSB has made upward adjustments across its BTL and residential mortgage products, marking a potential shift in mortgage costs for UK homeowners and landlords alike. In this article, I will explore the changes announced by both lenders and what might be happening in the future.
Metro Bank’s Reductions On UK Buy-to-Let Mortgage Rates
Metro Bank has adjusted its rates on select two-year fixed BTL products, with reductions of 0.30% across the board. Key changes include:
- 65% LTV Two-Year Fixed Rate: Now available at 3.69% with a 5% product fee
- 75% LTV Two-Year Fixed Rate: Now available at 3.89% with a 5% product fee
TSB Raises Rates On Buy-to-Let And Residential Mortgages
While Metro Bank is reducing rates, TSB has opted for a different approach, increasing rates on a range of residential and BTL mortgage products by as much as 0.25%. The adjustments impact several segments, including:
- Residential Two-Year Fixed Remortgage (0% to 60% LTV): Increased by 0.25%
- Two-Year Fixed First-Time Buyer and Home Mover (75% to 80% LTV and 85% to 90% LTV): Increased by 0.10%
- BTL Two- and Five-Year Fixed Remortgage Products (0% to 75% LTV): Increased by 0.10%
TSB’s rate hikes could signal a tightening of lending conditions, making it more important than ever for buyers and investors to carefully evaluate their mortgage options with a qualified mortgage professional like ourselves at Oportfolio Mortgages, particularly those affected by changes in the BTL sector.
Market Implications For UK Landlords And Homeowners
This difference in rate strategies between Metro Bank and TSB to me, offers a really interesting contrast in the UK mortgage market. Metro Bank’s reduced rates are likely to appeal to BTL investors seeking cost-effective financing of course, especially in a period where securing a low fixed rate is a priority. Meanwhile, TSB’s rate increases could impact affordability for residential borrowers and those looking to remortgage. So is the market leaning towards benefitting buy-to-let owners again? The last few years have really given landlords a bit of a battering, so this would not be surprising at all.
Speak To A Mortgage Broker About Rate Reductions And Increases
The best way to stay on top of any UK mortgage rate changes, whether you are a landlord or a residential property investor, is to work closely with a qualified mortgage advisor. Our job is to be up to date with every lender as their rates change and to help you to find the most competitive product and rate for your own scenario. Give our team a call today for a fee free initial mortgage consultation. We are here to help.
