A major shift in the UK mortgage market is underway as top lenders announce significant rate cuts on buy-to-let deals. In a move to increase competitiveness, Dudley Building Society has reduced its two-year fixed mortgage for landlords by up to 0.80 percentage points, while InterBay and Aldermore have also introduced new products with lower interest rates.
Dudley's latest offering includes a two-year fixed buy-to-let mortgage at 5.50%, down from 6.30% at 80% loan-to-value (LTV). The lender has also applied similar cuts to its holiday let deals, including a new two-year fixed rate of 5.55%.
InterBay's expansion into the buy-to-let market includes a new 65% LTV option, with tailored rates for substantial loans above £10 million. Rates across InterBay's range have been reduced by up to 0.20%, benefiting both new and existing borrowers.
Aldermore has followed suit with a rate reduction on its special edition product switch deal. This two-year fixed mortgage is now available at 6.44% for 70% LTV, with no product fee attached. Jon Cooper, Director of Mortgages at Aldermore, highlighted the lender's commitment to offering value for brokers and their landlord clients.
Coventry Building Society has also entered the fray by cutting rates on its five-year fixed mortgage for second-time landlords borrowing up to 65% LTV. The new rate stands at 4.81%, providing stability until December 2031, along with a free valuation, overpayment facility and no product fee.