Together leans into portfolio lending with lower rates as it sees new state of play in buy-to-let
Specialist lender Together has launched a new, lower-rate proposition targeting portfolio landlords with two or more properties who are seeking finance of more than £1m.
The finance firm has launched its new proposition to support to intermediaries’ clients who have faced rising rates, increased tax pressures and the impact of the Renters’ Rights Act in the past few years.
The proposition, which features lower rates than standard buy-to-let products allows those portfolio landlords who remain committed to the rental market to restructure their portfolios to create greater resilience and focus on long-term planning.
The new proposition sees landlords offered added support with:
- Lower than standard BTL product rates, starting at 4.69% (first charge, two-year fixed)
- Standardised single monthly payments across the overall portfolio via one direct debit
- One affordability assessment and one maturity date
- One personal guarantee
The newly launched proposition for loans over £1m is available for both first and second charge BTL products with automated valuation models (AVM) offered on all fully residential property. The proposition enables brokers to offer structured funding solutions to clients including non-standard or mixed asset types, regardless of maximum portfolio size.
Second charge rates are available for portfolio landlords at 25bps above first charge with lender arrangement fees on a sliding scale to allow for extra flexibility in terms of monthly repayments.
Together, which has a loan book of £8.4bn, has seen rising demand for larger loans of £1m and as landlords navigate an environment of rising rates and tax hikes. The lender has experienced a marked increase in enquiries to optimise portfolios through structured finance in a shift to a more efficient funding model.
Chief strategy director, Russell Anderson said: “We know from the feedback that we’ve had from brokers that landlords are proactively seeking innovative ways to maximise future opportunities, moving away from individual property loans and turning to lenders who can restructure debt at a portfolio level.
“The move is a clear signal to lenders that those able to help with complex financial solutions will be best placed to offer the added levels of support that landlords seek from their finance partner. We’re pleased to launch our new portfolio proposition at a lower rate than our standard BTL products across first and second charges to allow landlords to release equity across their assets to grow their portfolios.”