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:
BM Solutions – has reduced rates by up to 0.20% on selected fixed rates for remortgage applications which are available up to 75% loan to value.
Vida Homeloans – has launched a new “Vida Premier” range with rates starting from 2.89%. The range is designed for landlords with light impaired credit records and no CCJs or defaults in last three years. It has also increased its maximum loan amount to £4 million on portfolios of up to 15 properties (maximum £1.5 million per property). It will also now consider Ex-Pats residing worldwide and not just in the EEA.
Skipton Building Society – has increased rates on selected Buy to Let products by between 0.05% and 0.25%.
One Savings Bank (Kent Reliance & InterBay) – has simplified its interest coverage ratio (ICR) applicable to both Standard and Specialist property types, with some also being reduced. In addition, ICR calculations will no longer depend on the number of properties a customer owns. Instead, ICR will simply depend on whether the application is in a personal or limited company name, and whether the property is Standard or Specialist.
Landbay – has changed its pricing structure on HMOs up to six beds and on up to six units on one title which will now be priced at the same price as its standard range. It has also reduced the minimum valuation to £120,000 for HMOs.
Kensington Mortgages – has increased its Loan to Value on HMO’s to 75% and has also commenced lending in Scotland along with their sister lender, New Street Mortgages.
Foundation Homeloans – has introduced a new three-year fixed rate Buy to Let range for Houses in Multiple Occupancy (HMOs). Rates start from 3.29% with a lender completion fee of 1.5%. It has also introduced a five-year fixed rate product for portfolio landlords with a lender completion fee of 1%.
Platform Homeloans – will now consider lending on flats in a block of up to 15 floors for specific prime London postcodes. For all other postcodes it will continue to allow flats in a block of up to 10 floors. Its £300,000 loan limit for Buy to Let new build house applications has now been removed. (It does not offer Buy to Let loans for new build flats or maisonettes.) Maximum loan size for Buy to Let new build house applications is now aligned to their standard loan limits of £350,000 for Buy to Let and £500,000 for Premier Buy to Let.
Accord Mortgages – has reduced its minimum rental cover requirements for ‘straight switch’ remortgaging landlords. Remortgaging landlords looking to take a two or three-year fixed rate and who do not require any additional borrowing will benefit from an Interest Cover Ratio (ICR) of 125% at a stressed rate of 5.50%. For landlords who are capital raising the ICR will remain at 135% (freehold properties) and 145% (leasehold properties) with a stress rate of 5.50%. Its five-year fixed rates will continue to have an ICR of 135% with a stressed rate of 5% or the product rate, whichever is the higher, irrespective of whether you have a remortgage or purchase mortgage.
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.