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Back to school for buy to let – Ying Tan’s Market Monitor

by: Ying Tan, managing director, Buy to Let Club
  • 03/10/2016
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Back to school for buy to let – Ying Tan’s Market Monitor
It was back to school and back to business in September as summer came to a close and lenders certainly seemed keen to make the new ‘term’ exciting.

Paragon threw its support behind the HMO market – at a time when many landlords might be looking to such properties to capture the student market – with the launch of a range of limited edition five-year fixed rate products for single self-contained properties and HMOs. The range features loan-to-values (LTVs) up to 75%, rates from 3.75% and interest cover ratio at 125% at 4% for single self-contained and 130% at 4% for HMOs and multi-unit properties. The products are available to individuals and limited company landlords.

Aldermore launched its lowest ever buy-to-let mortgage rate available for private individuals on single residential units by reducing its five-year limited edition fixed rate buy-to-let mortgage from 3.18% to a pretty impressive 2.99%. The product is available up to 70% LTV and comes with a product fee of 1.50% and a £199 application fee.

Axis celebrated approaching 18 months in the market by announcing it will now lend in the whole of England and Southern Wales – not surprising given the impact the lender has had over the last year or so.

Coventry became the latest lender to shake up its age criteria. Responding to feedback from brokers it increased its maximum age at end of term from 75 to 85. Maximum age at application is now 75. The lender said it was adapting to the changing needs of borrowers – and not before time I must say. I still don’t understand why lenders place so much importance on income levels for buy to let – particularly when they’re clearly more concerned about rental income (as recent rental coverage requirement hikes have demonstrated).

Elsewhere, The Mortgage Works launched its lowest-ever fixed rate at 1.79% for clients with 65% LTV. There is a 2% fee, however.

Hinckley & Rugby increased maximum loan sizes on LTVs from 60%. The maximum limit for 60% LTV is now £500,000 and for 75% LTV £300,000.

Fleet Mortgages announced its buy-to-let revert rate is now 5.14%, as a result of August’s rate cut. Its rental calculation remains one of the most competitive at 125%.

Finally, Natwest Intermediary Solutions reduced its SVR for buy-to-let mortgages to 4.25%. All existing mortgage customers on a SVR will have their rate reduced from 1 October.

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