The news this morning that both Skipton and Accord have reduced their buy-to-let (BTL) rates today (3rd October 2023) is positive news for the market, according to brokers canvassed by Newspage.
Accord dropped BTL rates by up to 0.46%, while Skipton made reductions across both its residential and BTL products.
Brokers focused on the BTL reductions, with Justin Moy, managing director at EHF Mortgages stating that this was “good news for buy-to-let borrowers, as these reductions allow for more borrowing power based on the same rental income.”
The news was particularly welcome following news that swap rates increased, which led brokers to speculate that the recent price war was likely over.
Reaction:
Justin Moy, managing director at EHF Mortgages:
“More rate reductions are always welcome and show that competition between lenders is still bubbling under the surface.
“In particular, this is good news for buy-to-let borrowers, as these reductions allow for more borrowing power based on the same rental income.
“However, the rate cuts we’re seeing may start to taper given current activity in the swap market, and there’s every chance there could be rate hikes on the horizon.”
Craig Fish, director at Lodestone Mortgages & Protection:
“Despite some movement on SWAP rates in the wrong direction, it is encouraging to see lenders still making these rate reductions.
“Whilst there is nothing here to set the market alight, it is a clear indication that lenders are keen to write business, and need to to hit their lending targets by the year’s end.”
Steven Hargreaves, mortgage and protection adviser at The Mortgage Co:
“This is another example of lenders needing to fill their order books by the end of the year. The rate war is starting to gain traction.
“We have had rate reductions from all the top lenders and many smaller lenders, as they are all chasing the smaller market share on offer.
“Lenders have the money want to lend and need to lend and for the end users, namely first-time buyers, home movers, landlords and remortgagers, it is fantastic news as mortgage payments are starting to reduce.”
Rohit Kohli, operations director at The Mortgage Stop:
“Rate cuts are always welcome and this is positive news again for many would-be purchasers.
“However, markets are becoming jittery as we have the Autumn Statement and another base rate decision, and a sprinkling of inflation uncertainty and rising commodity prices on top of that.
“As a result, I would expect lenders to ease off reducing rates for a few weeks.
“Hopefully, we’ll still have some tweaks but I would not be surprised if we saw some sort of upward movement as well.”
Charles Breen, founder and director at Montgomery Financial:
“It’s fantastic to see the mortgage rate war rumble on, we are beginning to see it hot up now, this is great news for us brokers but even better news for anyone needing a mortgage.
“Seeing lenders still have money to lend and are fighting with each other over a smaller number of borrowers.
“Right now, market share is an absolute focus of the big lenders.
“This is a step in the right direction to for us to begin seeing signs of the British public falling back in love with property, jolt consumer confidence and spur on the property market and get the wheels turning again!”
Gary Boakes, director at Verve Financial:
“With swap rates increasing slightly last week and talks of inflation stalling or rising, it is still really positive to see lenders reducing their rates.
“They are aware that the market has slowed and they need to continue the positive trend to try and get buyers back viewing properties.
“Rates are higher than they were before, but so our rental rates, and the opportunities to buy a property are still out there, we just need to keep educating buyers and keep this run of positive news about rates going.”
Denni Tyson, mortgage broker at Henchurch Lane Financial Services:
“Reductions by the smaller lenders are exactly what we as brokers need to see, as well as, of course, the general public.
“Seeing reductions in tracker-based products also gives an indication we are moving in the right direction for 2024.”
