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: –
Virgin Money – will now offer its full buy to let range to portfolio landlords. The lender will now accept applications from landlords with up to 10 mortgaged properties, and an unlimited number of mortgage-free properties, with a maximum exposure of £3m. At the same time Virgin has extended the maximum term for its buy-to-let loans from 25 to 35 years. Virgin currently offers free basic valuations on all buy-to-let remortgage applications, and either free standard legal work or cashback. These offers will be extended to portfolio landlords.
Hinckley & Rugby Building Society – has extended its buy-to-let underwriting to allow for portfolio landlords, now providing loans for between four and 10 mortgaged investment properties. All of Hinckley & Rugby’s current products will be available to portfolio landlords. The criteria include that the Interest Cover Ratio (ICR) of the property and the portfolio as a whole must be at least 145% at a reference rate of 5.5%. At least one applicant must have at least two years of experience as a landlord.
Skipton Building Society – has made changes to their buy to let fixed range with reductions of up to 0.23%.
Foundation Homeloans – has launched a range of five year fixed rate exclusive products available through selected mortgage intermediaries including 3mc/RLA Mortgages. The products are available up to 75% loan-to-value for standard residential properties for both individuals and limited companies. Rates start from 3.34% with rental stressed at the pay rate.
Kent Reliance – has launched an income backed buy-to-let proposition aimed specifically towards non-portfolio landlords (those with up to four buy-to-let properties) applying in your personal name or via a limited company. A calculator is available and has been created to meet the needs of high earning individuals with low residential leverage and high yielding individuals or limited company landlords where the subject property is low yielding.
The Mortgage Works – has reduced the cost of its five-year fixes by up to 0.5%. Selected 65% loan-to-value products have been reduced by up to 0.5% now starting from 2.09%. Selected 75% loan-to-value products have been reduced by up to 0.15%, starting from 2.54%, while all of its 50% loan-to-value fee-free products have been reduced by 0.05%, starting from 2.39%.
Paragon Bank – has launched a range of five year fixed rate exclusive products for portfolio landlords available through selected mortgage intermediaries including 3mc/RLA Mortgages. The products enable a client to borrow up to 75% loan-to-value for loan sizes to £750,000 including a free valuation and a cashback of £500. In addition, the portfolio range is now available for properties in Scotland.
Accord Mortgages – Accord has reduced rates and added cashback to select buy-to-let mortgages. Buy to let investors with a 35% deposit can now access a two-year fixed rate mortgage at 1.82%, with a £1,495 fee, free standard valuation and a choice of either £750 cashback on completion or free legal fees and £250 cashback. There is also a two-year fixed rate mortgage at 1.74% with free standard valuation and cashback of £750 at up to 60% loan to value (LTV). This mortgage also comes with a £1,495 fee. A fee-free five-year fixed rate mortgages is priced at 2.93% for landlords looking to remortgage at 65% LTV, which comes with free standard valuation and free legal fees.
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.