Specialist buy-to-let (BTL) lender CHL Mortgages has reduced its fixed rates by up to 39 basis points (bps).
The individual and limited company 2-year fixed rates start from 5.40%, reduced by 35bps, with 5-year fixed rates now available from 5.27%, reduced by up to 34bps.
The largest rate reduction of 39bps was made on the house in multiple occupation (HMO) and multi-unit freehold block (MUFB) 2-year fixed rate products, now available from 5.41%, with the 5-year fixed rate options cut by up to 36bps and starting from 5.30%.
CHL Mortgages’ refurbishment range was reduced by up to 36bps, with 5-year fixed rates starting from 5.23%.
There were further price reductions across its short-term let product options.
CHL Mortgages also made changes to the interest cover ratio (ICR) calculation for its 2-year fixed rates products.
The ICR for all 5-year fixed rate products was not changed, and will continue to be calculated at pay rate.
Ross Turrell (pictured), commercial director at CHL Mortgages, said: “With long term interest rates showing signs of stability we are seeing this latest round of welcome rate cuts.
“For the [BTL] market we also have rents improving, tenant affordability increasing as wage rises kick in and a softening of house prices in real terms (taking account of inflation).
“This has improved the prospects for the Landlord and we should see the sector start to gradually move forward as we head into 2024.”
