West One has reduced rates by up to 70 bps, and eased its stress test requirements for selected BTL products.
The lender’s portfolio two- and five-year fixes have been lowered by up to 57 bps and 54 bps, respectively, and are now available from 3.64% and 3.96%.
Meanwhile, rates for its non-portfolio two- and five-year fixed-rate products start from 4.32% and 4.5%, respectively.
West One has also cut its core and complex fixed-rate options by up to 70 bps, with rates now starting at 3.84% for two-year fixes and 4.64% for five-year fixes.
In addition, the stress rate for any borrower opting for a variable rate, or for a fixed rate of less than five years will be the higher of 6% or pay rate — down from 6.5% before.
Andrew Ferguson, managing director of BTL at West One (pictured above), said: “Landlords are becoming increasingly optimistic that rates are set to fall and so many of them are now looking to keep their options open by opting for a variable or short-term fixed-rate product.
“However, the thing that is stopping many of them from proceeding is that they are not able to borrow as much as they would if they opted for a five-year fixed rate or longer, due to the fact many lenders offer a set rate to calculate affordability.
“Our decision to lower our stress rates will give landlords the option to choose a variable or shorter-term fixed-rate while still achieving the levels of leverage they need.
“The ability to choose a shorter-term rate gives landlords manoeuvrability and the option to switch into a longer-term fixed rate if and when mortgage rates fall further.
“But, as a responsible lender, we won’t do anything that puts landlords at risk, which is why we now insist on a stress rate of the higher of 6% or pay rate — this is to ensure we continue to offer flexibility while lending responsibly.”
