Vida Homeloans has announced the introduction of an 80% LTV five-year fixed fee special to its buy-to-let (BTL) range at 4.34%.

The specialist mortgage lender confirmed the product is available to the whole of market on both a purchase and remortgage basis.

The product has a fixed fee of £3,750 with a maximum loan size of £750,000, and a free valuation for all properties up to the value of £1m.

Vida suggested the move comes as part of a “continuing commitment” to offer mortgage intermediaries a wide range of flexible BTL products at competitive rates.

Despite a slowdown in the BTL market in 2020, according to figures from the Intermediary Mortgage Lenders Association (IMLA), a modest recovery is expected in overall BTL lending in 2021 to £40bn – with BTL remortgaging expected to increase to £28.2bn this year.

Vida director of mortgage distribution, Richard Tugwell, commented: “COVID-19 has impacted the financial circumstances of millions of people across the UK, and landlords are no exception.

“Many have experienced issues with rental yield or are investing in more specialist property types, so they will need the support of expert lenders like Vida who can help them despite their more complex requirements.

“A thriving rental sector is key to the recovery of the UK housing market, and with a strong growth trajectory expected in the remortgage BTL sector this year, landlords have a good opportunity to focus on capital raising to extend their BTL portfolios. We’re confident that our fixed fee special is an ideal solution for landlords with several HMOs or MUBs, looking for greater choice and flexibility for larger loan sizes up to 80% LTV.”

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