HSBC UK has reduced buy-to-let (BTL) remortgage and purchase rates across all loan-to-values (LTVs).
Notable reductions for purchase and remortgage include the 65% LTV 2-year fix cut by 0.30% to 1.69%, the 65% LTV 5-year fix by 0.30% to 1.84%, and the 75% LTV 2-year fix by 0.15% to 1.34%, which also includes a £1,999 fee.
For remortgage only, the 65% LTV 2-year fix has been cut by 0.35% to 1.14% and the 75% LTV 2-year fix by 0.15% to 1.84%. The former deal also includes a £1,999 fee.
Michelle Andrews, head of buying a home at HSBC UK, said: “The BTL market may be 25 years old, but it is still evolving.
“The pandemic and subsequent lockdowns have shown how important the rental sector is, as tenants reassess their housing needs post-lockdown.
“While some city dwellers are moving away from traditional commuter hubs in the search for space and tranquillity, others are returning to city life.
“Renting gives people important flexibility if they are moving to a new area, similar to ‘try before you buy’.
“There is also a population of new ‘accidental landlords’ who may have used the lockdowns as a reason to move in with a loved one or a friend as a solution to living alone, and have subsequently made a decision to make it permanent, leaving them with a property that can be rented out.
“Following this challenging 18 months, the BTL market is starting to reflect the greater tenant demand, with continued record low interest rates helping to drive this growth.
“Our rate refresh makes it cheaper for those looking to purchase or remortgage BTL properties.
“We want to support more homeowners through every stage of the mortgage journey, and providing brokers with access to our BTL range of mortgages will extend the availability of our BTL mortgages.”