Buy-to-let lender CHL Mortgages has reduced its fixed rates by up to 39 basis points (bps).

The individual and Limited Company two-year fixed rates now start from 5.40%, a reduction of 35bps, with the five-year fixed rates now available from 5.27%, a reduction of up to 34bps.

The largest rate reduction of 39bps is seen in the HMO/MUFB two-year fixed rate products which are now available from 5.41%, with the five-year fixed rate options cut by up to 36bps and now starting from 5.30%.

The Refurbishment range has been reduced by up to 36bps with five-year fixed rates starting from 5.23%. There are further price reductions across its short-term-let product options.

The lender has also made changes to the Interest Cover Ratio (ICR) calculation for its two-year fixed rates products. The ICR for all five-year fixed rate products is unchanged and will continue to be calculated at pay rate.

Ross Turrell (pictured), commercial director at CHL Mortgages, said: “With long term interest rates showing signs of stability we are seeing this latest round of welcome rate cuts. For the buy-to-let market we also have rents improving, tenant affordability increasing as wage rises kick in and a softening of house prices in real terms (taking account of inflation).

“This has improved the prospects for the Landlord and we should see the sector start to gradually move forward as we head into 2024.”