In November 2024, Kent Reliance, a prominent name within the OSB Group, has made significant revisions to its buy-to-let (BTL) mortgage offerings, enhancing its appeal to landlords in the current rental market. With reduced rates for BTL mortgages at a 75% loan to value (LTV) along with the introduction of new tiers at 55% and 65% LTV for five-year fixed-rate loans, Kent Reliance aims to cater to the evolving demands of property investors. The starting rates are notably competitive, positioned at
5.34% for a two-year fixed-rate mortgage with a
3.5% fee and
5.39% for a five-year fixed with a 5% fee. To further support landlords, the lender has also adjusted its criteria for houses in multiple occupations (HMOs), now including multi-unit freehold blocks (MUFB) of up to 20 units as standard. Adrian Moloney, the Group Intermediary Director, has highlighted the company’s responsiveness to broker feedback, noting that the updated offerings not only enhance competitive advantage but also underscore a commitment to meet the needs of landlords amid an evolving regulatory landscape. This strategic move ensures that Kent Reliance remains a significant player in the private rental sector (PRS), especially as landlords seek favorable financing options.
Key Takeaways
- Kent Reliance has introduced competitive buy-to-let mortgage rates for various loan-to-value tiers.
- The updated criteria now include multi-unit freehold blocks, enhancing options for landlords.
- The company’s responsiveness to broker feedback reinforces its position as a leader in specialist lending.
Overview of Kent Reliance’s Updated Buy-to-Let Mortgage Products
Kent Reliance, a recent staple within the OSB Group, has refreshed its buy-to-let (BTL) mortgage product lineup, signalling a notable shift in the competitive landscape of mortgage offerings. The firm has cut rates on BTL mortgages for borrowers looking at a 75% loan-to-value (LTV) ratio and introduced new tiers for five-year fixed-rate loans at 55% and 65% LTV. Notably, the revised rates commence at
5.34% for a two-year fixed term with a
3.5% arrangement fee, with five-year fixed rates starting at
5.39% accompanied by a 5% fee (Kent Reliance, 2024). Furthermore, the criteria around houses in multiple occupations (HMOs) have also been updated to now universally include multi-unit freehold blocks (MUFB) accommodating up to 20 units. Adrian Moloney, the Group Intermediary Director, commented on the importance of incorporating broker feedback into their strategy, reflecting their dynamic approach to lending amid diverse market conditions (Rowne, 2024). Feedback from industry figures such as Matthew Rowne from The Buy To Let Broker praised the enhanced competitiveness of these products, particularly in relation to larger MUFBs and the new lower LTV brackets, signifying a strong support system for landlords seeking competitive financing options. Kent Reliance’s proactive stance in addressing the evolving needs of brokers and landlords, especially amid stricter regulatory environments, reinforces their position as a frontrunner in the specialist lending domain.
Implications for Landlords and the Buy-to-Let Market
The recent adjustments by Kent Reliance signal a vital shift in the buy-to-let market, particularly beneficial for landlords operating within challenging economic frameworks. By diversifying their product offerings and reducing interest rates, the lender is addressing key concerns amidst rising costs in the property sector. This strategic move allows landlords greater access to financial products that not only cater to traditional property lettings but also enhance opportunities for investment in varied housing models like houses in multiple occupations (HMOs) and multi-unit freehold blocks (MUFBs). Moreover, by placing greater emphasis on lower loan-to-value ratios, Kent Reliance may appeal to new and existing property investors who might have hesitated due to previous market volatility. These developments also underscore a broader trend within the property financing sector aimed at stabilising the market and facilitating growth, particularly as landlords plan for long-term investments despite tightening regulations aimed at increased compliance and sustainability in the rental market. Furthermore, this aligns with trends towards more flexible lending products aimed at meeting specific needs of landlords, suggesting a responsive financial landscape in Kent (Morton, 2024). This initiative not only showcases the lender’s agility but also bolsters confidence among landlords seeking to navigate a multifaceted financial ecosystem.
