Specialist lender MT Finance has announced a reduction in rates across its buy-to-let range, with its flagship two-year fixed Tier 1 product now available at 2.99%.

The move brings the product under the 3% threshold for the first time.

The new 2.99% rate, down from 3.19%, applies to the lender’s standard residential buy-to-let offering for Tier 1 borrowers. Its Tier 2 equivalent has also seen a cut, falling from 3.89% to 3.65%. The reductions extend to a number of other products in the range, with some rates cut by as much as 0.24%.

Stress testing remains at 125% interest cover ratio.

Marylen Edwards (pictured), director of mortgages at MT Finance, said: “We are delighted to introduce this significant rate reduction, now offering a buy-to-let product with a rate below 3%.

“At a time when landlords and property investors are seeking value and stability, breaking through the 3% barrier reflects our confidence in the market.”

The repricing follows a series of marginal rate reductions by specialist and mainstream lenders, as improving swap rates offer greater flexibility.