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Specialist buy-to-let mortgage lenders are flocking to cut interest rates before Thursday's Bank of England's rate-fixing meeting (February 6, 2025).
Mortgage brokers and analysts are predicting the Bank will cut interest rates quicker and deeper than expected.
The Bank's Monetary Policy Committee member Alan Taylor has already gone public with a call to cut rates. The committee has the final call on setting official interest rates, although banks and finance houses can set their own rates.
He has suggested that the UK is "in the last half mile on inflation" and wants rate cuts to happen quicker to facilitate a "soft landing".
Taylor was one of three of nine monetary policy committee members to vote for a 0.25 per cent rate reduction in December.
He said: "On multiple fronts, UK businesses and households could face a near-term cashflow squeeze, and we need to carefully monitor this important potential downside trigger."
The BoE official interest rate is 4.75 per cent, while inflation is running at 2.5 per cent.
Anticipating further interest rate cuts, several buy-to-let lenders have reduced mortgage rates for landlord borrowers.
Accord Mortgages has led the way by knocking 0.25 per cent off new buy-to-let mortgage rates on three-year fixes up to 85 per cent loan-to-value (LTV). New five-year fixes drop by 0.2 per cent and tracker rates by 0.05 per cent.
Landlords are also offered a two-year fix to 60 per cent LTV at 4.39 per cent with a fee of £3,495, help with remortgage legal fees, and a free valuation.
The lender has a three-year fix for purchases only at 65 per cent LTV at 4.74 per cent, with a £995 fee, £250 cashback, and free standard valuation.
Accord's five-year fixed rate buy-to-let remortgage up to 80 per cent LTV is priced at 5.29 per cent and comes with a £995 arrangement fee, remortgage legal service, and free standard valuation.
The lender is also tweaking interest cover rates (ICRR), which checks mortgage affordability. The rate falls from 5.5 per cent to 5 per cent.
Buy-to-let niche lender Molo has already cut two- and five-year fixed rates by up to 0.2 per cent.
Standard loan two-year fixed rates start at 3.25 per cent, while two-year specialist fixed rates start at 3.5 per cent. Molo's standard five-year fixed rates start at 4.85 per cent, while specialist rates lock-in from 5.1 per cent.
Keystone Property Finance is reducing all rates by 0.15 per cent. The cut applies to all two-year and five-year fixed rates across Keystone's ranges.
Keystone's rates start from the standard range of 3.34 per cent up to 70 per cent LTV. Arrangement fees vary from 2.5 to 7 per cent of the loan. Legal costs and a valuation fee are also payable.
Most of the deals listed above are offered through brokers.