Online mortgage company Habito is now offering longer-term fixed rates for homeowners at seven and 10 years.
The company says these fixed rate terms would be offered at both 80% LTV and 85% LTV.
And a new product at 85% across the full range of terms has launched for properties with an Energy Performance Certificate (EPC) rating between A and C and which are valued at a minimum of £100,000.
The maximum loan size has also been doubled from £1million to £2million for landlords in London and the South East, where the company said “a vibrant rental market has been restored since the lifting of the Covid restrictions”.
Habito’s vice president of lending, Alan Fitzpatrick, said the move to offer longer-term mortgages made sense given recent moves by the Bank of England.
“We know that landlords have seen the Bank of England’s multiple base rate hikes since December and are considering fixing their rate longer to get that security on their monthly mortgage payments and protect their rental yield,” he says. .
He adds that the new 85% LTV product would also reward landlords with properties with better energy performance ratings “as we try to encourage landlords to anticipate the upcoming proposed EPC changes which will require rental properties to have a grade of C or better by 2025, to start a new hire”.
Habito has updated its range of fixed rates, ranging from three-year 65% LTV deals starting at 3.3%, to 10-year 75% LTV deals starting at 3.54%.