InterBay significantly reduces rates for Buy to let and HMOs and simplifies pricing

Jun 28 2017

InterBay Commercial, part of specialist lending group OneSavings Bank plc, announces cuts to its entire range of Buy to Let (BTL) and HMO rates. Variable rates will now start from 4.2%, and 5 year fixed rates, which are stress-tested at pay rate, will start from 4.4%.

The reprice is supported by simplification of the range with the removal of the 70% and 80% LTV brackets for BTL and HMO, providing simpler product ranges that continue to meet clients’ needs. In a further move, BTL and HMO loans above 75% LTV will now be available up to £1m.

Highlights of its BTL and HMO pricing changes include:

  Margin (%) 
Loan size Rate (%) 65% LTV 75% LTV 85% LTV
£100K – £500k 3 month LIBOR + margin of 0.75% 4.10 4.20 4.65
Above £500k 3 month LIBOR + margin of 0.75% 3.45 3.60 4.25*†

Darrell Walker, Head of Second Charge & Commercial lending, OneSavings Bank, said, “The new pricing and simplification of our product range forms part of our commitment to provide brokers with access to a competitive and compelling proposition for their specialist clients. These changes complement the improvements we have been steadily making to our offering throughout the year, matching changing market needs, and will ensure we are at the forefront of our brokers’ minds.”

3 month LIBOR is subject to a minimum rate of 0.75% *Maximum loan amount £1,000,000. †Maximum 75% LTV for HMOs with more than 8 rooms