It was certainly a mixed bag when it comes to product news and criteria for the Buy-To-Lease (BTL) industry over the past month.
When I say mixed bag, I don’t mean a combination of bad and good – it has been overwhelmingly positive. What I mean is it has been great to see so many bold and innovative steps taken by a range of lenders.
Let’s start with the innovative launch of Foundation Home Loans‘ Green Reward Remortgage for Homeowners.
The Five Year Fixed Rate Homeowner Mortgage is available for remortgage only on private rental properties with an Energy Performance Certificate (CPE) of C or higher, dated within the last 12 months, with the exception of listed properties who are not eligible.
For those who qualify, the Foundation is offering a rate of 3.75% up to 75% LTV, with a £ 750 discount upon completion plus a reduced fee of 0.75%.
Staying with the products, LendInvest has launched a range of special edition rental products.
The lender introduced a fixed five-year LTV at 70% at 3.39% with a maximum loan amount of £ 1million, and a 75% five-year LTV at 3.49% with the same amount of maximum loan.
Additionally, LendInvest has cut rates across its entire range of five-year fixed rate BTLs, with its 65% LTV product now available from 3.29% with a maximum loan of £ 1.5million.
It also offers cash back for legal fees of 0.25% of the loan amount up to £ 1,000 on qualifying five-year fixed rate products.
Fleet Mortgages announced a range of price cuts on two- and five-year fixed rates across its three ranges – Standard, Limited Liability Company and Multiple Occupancy Homes (HMOs).
As part of its product changes, Fleet moved all LTV products from 60% up to 65% LTV and also specifically reduced the prices for those five-year fixes – standard products and limited companies – where the calculation of its rental is based on the rate of pay. .
Habito reduced its purchase-lease mortgage rates. The lender’s fixed BTL rates now start at 3.04 percent, which is a reduction of 0.10 percent.
For products from individuals and corporations at 75 percent LTV, rates now start at 3.29 percent, down 15 basis points.
Seeking to help BTL fixes, products now start from 3.16% for individuals and 3.12% for LLCs. These products come with a £ 750 discount and free transfer for customers who buy on their own behalf.
Paragon Bank has introduced two remortgage-only products, both of which include £ 500 cash back and a free mortgage appraisal. In addition, offers are available to remortgage owners on their own behalf or through their limited liability company.
Loan policy and criteria
By focusing our attention on loan policy and criteria, Coventry for Intermediaries has improved its affordability calculations for rental loans.
The lender will now apply a benchmark rate of 4.5 percent for all fixed rate calculations of five years and over, down from the previous rate of five percent.
Accord Buy To Let has increased its maximum borrowing limit and overall portfolio size for non-first-time homeowners.
In addition, it has reduced its standard valuation and homeownership fees, with the intention of providing better support to homeowners. For established landlords, overall rental purchase loan limits have now increased from £ 1million to £ 3million.
Also, the total number of BTL mortgages a borrower can have with the lender has increased from three to five and the total maximum portfolio size has been reduced from 15 to no limit.
Finally, West One Loans’ buy-to-let division has extended its borrower exposure limit to £ 5million for those who meet the requirements of the W1 credit criteria.
In addition, it will now consider licensed HMO properties with up to 10 bedrooms.