January’s Buy to Let Market Update
by Doug Hall
Written by Doug Hall
Welcome to ‘Buy to Let Market’, a column aimed at providing you with recent criteria and product updates within the buy-to-let lending markets.
Buy to Let Market Update:
Coventry/Godiva – has repriced various products to include a 2 year fixed rate at 1.39% available to 50% loan to value for both purchases and remortgages which includes a free standard valuation to the value of £700.
BM Solutions – has reduced rates by up to 0.30% on selected fixed rates for purchase applications which are available up to 75% loan to value.
Foundation Homeloans – has increased their maximum borrowing from £2 million to £3 million held by a client with this lender with no limit on the number of properties with them or with other lenders.
Landbay – has altered their criteria for portfolio landlords whereby their minimum rental requirement for the underlying portfolio has changed from 125% @ 5.5% to 125% @ 5%. They have also introduced criteria for a first time buyer, first time landlord with a minimum employed income of £85,000. Some products are also now available with a free standard valuation.
Aldermore Bank – has launched a new range of Ex-Pat Buy to Let products available for individual residential units, up to 6 bedroomed HMO’s and up to 4 flats on 1 freehold title. Available to British Citizens residing in a FATF member country or confederations. Exclusions do apply. Rates start from 4.18%
Precise Mortgages – has updated a 3mc exclusive for HMO’s (Houses in Multiple Occupation) for both individual and Limited Company applications. The rate is now fixed at 3.29% for 2 years with a lender product fee of £995 for loans up to £500,000. The product is available up to 75% loan to value for both remortgages and purchases. The lender has also recently increased their maximum borrowing to an individual from £5 million to £10 million. This lender has also launched an income supported Buy to Let product. On some occasions the rental income achieved by a property is not sufficient to cover the minimum.
Interest cover ratio for the loan amount required. Precise Mortgages are now offering the option for customers to use their excess earned income to support their buy to let application and achieve the loans they need.
Accord Mortgages – has reduced three 5 year deals at 65% LTV by up to 0.27%, available for either purchase or remortgage and they come with a range of incentives including cashback, free legal and free valuation. They have also cut rates on 40 products across the range by up to 0.35%.
Paragon Mortgages – has removed the requirement of a floating charge on all portfolio applications for limited companies, incorporated solely for the activity of holding and letting residential properties. For portfolio landlords and for a limited period only they are also offering a free valuation fee and no application fee for all products.
Santander – has made changes to their BTL affordability meaning some clients may be able to borrow more as they now use a more bespoke approach which has three levels of rental cover:130% rental cover where at least one applicant’s income tax band is 20% or less. 145% rental cover if all applicants’ income tax bands are 40% or 45%.125% rental cover for remortgages without capital raising under transitional arrangements for all income tax bands. They also now accept remortgage applications without capital raising which don’t meet their eligibility criteria for transitional arrangements.
Castle Trust – has launched new Credit Recovery mortgages which are aimed at landlords with adverse credit, from lightly impaired through to heavy adverse, including applicants with a history of IVAs and recently discharged bankruptcy. Every case is priced individually based on the credit profile of the customer and there are no early repayment charges on expiry of the product. Their Credit Review Service offers the option of an annual review which enables customers with improving credit to move to a better Castle Trust product.
For further information on buy-to-let mortgages both for individuals and limited companies please contact RLA Mortgages on 0844 858 4420 or visit the website www.rlamortgages.co.uk.
Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for a specific product. The product rates are correct at the time of writing the article and are subject to change.
This is a financial promotion and in no way should it be viewed as a personal recommendation or advice. Before a recommendation/advice can be given, you should seek independent mortgage or financial advice. RLA Mortgages is operated exclusively for The Residential Landlords Association (RLA) by 3mc, which is authorised and regulated by the Financial Conduct Authority. FCA No. 302992. The Residential Landlords Association is an Introducer Appointed Representative of 3mc (UK) Limited.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Although the FCA regulates the way the majority of mortgages are sold, in most cases it does not regulate buy to let mortgages. This means you may have less protection if things go wrong with a buy-to-let mortgage.
Buy-to-let buy-to-let mortgages