Buy-to-let specialists predict there could be a price war as lenders struggle to achieve lending targets with residential mortgages.
Throughout July, The Mortgage Works, NatWest Intermediary Solutions and Skipton Building Society have reduced the rates on their buy-to-let products by 0.4 per cent, 1.4 per cent and 0.3 per cent respectively.
Buy To Let Funding Services principal Geoff Laird says: “I believe some lenders are relying upon buy-to-let to get them through this year because they will not be able to achieve their lending targets on residential properties.
“The demand for rental property is continuing to increase and lenders are going to try to get a share of the business if they are competitive. This might be through rate reductions or lower completion fees.”
Mortgages for Business managing director David Whittaker says: “The pressure is on lenders to perform and that is why we are seeing some repricing. Volumes are a bit low for some lenders at the moment.”