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NatWest and Kensington Mortgages have each announced changes to their buy to let ranges.
Natwest has announced that it will increase rates across its core and semi-exclusive ranges of residential and buy to let purchase mortgages and remortgages.
For buy to let products, two-year fixed rate products are increasing by up to 22bps. Two-year remortgage rates will also rise by up to 18bps.
However, NatWest is also cutting five-year fixed rates by between 7-24bps.
Head of sales at NatWest, Mark Bullard, commented: ‘Having reviewed our portfolio we have made some adjustments to rates to reflect the current market conditions and balance our mix of business.’
Kensington Mortgages, part of the Northview Group, is launching a limited company buy to let proposition. It has also increased loan-to-values and loan values across its mortgage ranges.
Rates begin from 3.14 per cent for a two-year fixed rate loan at 70 per cent LTV.
Following the government’s decision to charge most borrowers tax on mortgage interest by removing tax relief, limited company mortgages are growing in popularity. This is because those who borrow through a limited company can still receive full tax relief on mortgage interest.
Sales and marketing director at Kensington Mortgages, Craig McKinlay, said: ‘We are committed to lending for real life at Kensington, and that means serving Britain’s underserved borrowers to meet their residential and buy-to-let needs, whether they are a landlord operating as a limited company or a freelancer with homeownership ambitions.’
Communications director of mortgage broker London & Country, David Hollingworth added: ‘There is a widespread expectation for limited company mortgage demand to grow, so a growing range of lender choice in that sector will be welcomed by brokers and their landlord customers. It should also help develop more competition in that sector, which over time could help to drive rates down for limited company landlords too. As a specialist lender, limited company feels like a natural fit to expand its proposition.’