Kent Reliance launches resi range and cuts BTL rates

Kent Reliance launches resi range and cuts BTL rates

Within the residential range from Kent Reliance, its income flexibility range for customers who need flexibility around income multipliers is available up to 95 per cent loan to value (LTV) up to £1.5m.

Its extra flexibility range, for borrowers who need flexibility due to the credit profile, is available up to 85 per cent LTV.

Core residential fixed rates at 85 and 90 per cent LTV have fallen.

In the shared ownership range from Kent Reliance, all product fees have been removed and rates on 95 and 100 per cent mortgage share value (MSV).

In its BTL range, 80 per cent LTV fixed rates have dropped by 0.5 per cent.

Full range rates from 4.59 per cent are suitable for any property type, including houses of multiple occupancy (HMOs) with up to 20 lettable rooms.

Adrian Moloney (pictured), group intermediary director at OSB Group, said: “With the current economic backdrop, we were keen to provide some positive product options for brokers, as we understand the challenges they are facing across the board.

“At the end of the day, there are always clients wanting to transact, whether it’s for the next step towards a family home or an investment property, so it’s important as a lender that we listen and adapt accordingly. For example, our income flexibility products were designed to help newly qualified professionals looking to purchase their first home but needing flexibility around income multipliers.”

Wayne Gray, managing director of DMI Finance, said: “KRFI are a key lending partner and these products and reduced rates will certainly be welcome news, especially for our residential clients who need just a little more flexibility in order to secure their dream property.

“Alongside this positive news, we really value the support of KRFI’s award-winning BDM team, as they take the time to talk through case complexities, which can make a real difference towards securing a positive outcome.”

Keystone Property Finance revises specialist and expat mortgage ranges

Keystone Property Finance revises specialist and expat mortgage ranges

The headline rate from Keystone Property Finance is available at 65 per cent loan to value (LTV) on a two-year fixed deal for experienced landlords who are purchasing or refinancing a house of multiple occupancy (HMO) or multi-unit freehold block (MUFB) with seven to 15 occupants or units. 

The rate is 4.54 per cent for the corresponding deal available to first-time landlords purchasing or refinancing HMOs and MUFBs with one to six occupants or units. 

The pricing rises to 5.54 per cent or 5.34 per cent for the equivalent five-year fixed options.  

Across its expat range, rates start at 4.64 per cent for a two-year fix at 65 per cent LTV, open to experienced landlords purchasing or refinancing HMOs or MUFBs with one to six occupants or units. 

For properties with seven to 15 occupants or units, the corresponding product is priced at 4.94 per cent. 

The five-year fixed options are open to experienced landlords only and priced at 5.74 per cent and 5.94 per cent respectively. 

Elise Coole (pictured), managing director of Keystone Property Finance, said: “These enhancements address a very real need in the market for expat and specialist buy-to-let (BTL) options. Brokers have told us that they would like to see a better choice of deals for first-time landlords, which is why we have made them a key focus of both ranges. 

“Starting at 4.34 per cent, this new suite of products is highly competitive and we’re expecting good take-up from the market. While other lenders have increased their rates recently, we have decided to keep ours level. This approach underscores Keystone’s commitment to providing stable, affordable financing options for property investors at a time when the cost of funding has been rising.” 

In January, Keystone Property Finance enhanced its broker portal.

Capricorn secures BTL deal for non-residents; Buy to Let by Foundation adds HMO options – round-up

Capricorn secures BTL deal for non-residents; Buy to Let by Foundation adds HMO options – round-up

The product from Capricorn is open to international buyers investing in properties in England and Wales. It has a fixed rate of 3.99 per cent and is available up to 70 per cent loan to value (LTV). After the initial one-year period, the rate will revert to the base rate plus 3.99 per cent. 

An interest-only option is available with a 0.75 per cent additional rate loading. 

The product from Capricorn is available to borrowers from China, the Middle East, Turkey, Malaysia, Thailand and selected others, while the property must be let out. 

Conor Murphy (pictured), CEO and founder of Capricorn Financial Consultancy, said: “International buyers continue to look to UK housing stock as an attractive asset class, with London the valuable centre point. 

“Stabilising house price inflation and a favourable exchange rate are continuing to boost interest in UK property, and today’s announcement is another important step in our mission to help more overseas buyers to invest in these valuable assets.” 

 

‘Buy to Let by Foundation’ launches HMO deals for first-time landlords 

‘Buy to Let by Foundation’, the BTL brand of Foundation Home Loans, has added a pair of mortgages for houses in multiple occupation (HMO) targeted at first-time landlords.

This applies to people who have not held a residential BTL property in the last 12 months and are already an owner-occupier.

The products are available through the lender’s F2 range, which is for borrowers financing a more specialist type of property or people with historical credit blips. 

They are available up to 75 per cent LTV with the two-year fixed rate starting at 6.84 per cent and the five-year fix at 6.49 per cent – both have a two per cent fee. 

Tom Jacob, director of product and marketing at Foundation Home Loans, said: “Historically, first-time landlords tended not to begin their property investing journey with more specialist property types, however more recently we have been aware of an increase in demand in this space, no doubt fuelled by a quest for greater rental yield levels, and in order to meet the healthy demand for such tenancies. 

“We’re therefore very pleased to be offering these new standard HMO products, specifically for first-time landlords, who can benefit from our experience in this space, plus a 75 per cent LTV product with both competitive two- and five-year pricing.” 

He added: “Clearly, HMO properties come with greater responsibilities and requirements than standard rental property types, and it’s important advisers play a pivotal role with first-time landlords, helping them understand all that is involved as well as ensuring they have the right finance solution for their purchase needs.” 

Criteria innovations could get BTL market and landlords moving again – Waters

Criteria innovations could get BTL market and landlords moving again – Waters

Already feeling the pain of a tax regime that has become a lot more hostile over the past decade, higher rates are affecting the amount of leverage landlords can achieve.

Unless landlords can significantly hike rents or have the capital to fill the void, they are stuck. But the trouble is, many can’t.

That is having a knock-on effect on lending activity. Last year, purchase lending slumped 53 per cent, according to UK Finance, and is expected to fall a further 13 per cent this year.

One of the ways lenders can provide some fresh impetus back into the market is if they are willing and able to think outside of the box when it comes to their criteria.

We have already seen this to some degree. Around the middle of last year, when the Bank of England (BoE) was in the middle of its tightening cycle, many lenders came to market with lower-rate, higher-fee ranges. That helped ease some of the pressure on landlords, allowing them to borrow more without having to hike their rents.

 

New products and approach to stress testing could help landlords

However, I believe there is more than can be done. The first area I would look at is the stress test, which of course doesn’t apply to borrowers who fix for five years or more .

But not all clients want to fix for that long. We’ve got clients who expect rates to fall over the next couple of years, so want to lock into a two-year fix or even a variable rate deal.

The trouble is those who do find that they cannot borrow as much due to lenders’ stress tests. Those tests are there for good reason, of course: to ensure sensible lending.

That said, there is an argument to say that some lenders’ stress tests are overly strict, given they have already done their job.

I would also like to see some sort of partial interest retention product, which is popular in the bridging sector, introduced for landlords.

How would that work? Rather than pay the interest each month, some of it would instead be ‘retained’ and paid at the end of the fixed rate period.

Alongside a more relaxed stress test, a retained interest product might make the difference between a borrower qualifying for a loan or not.

There would be drawbacks and challenges, of course. Because of the retained interest element, the loan size may be a little smaller. And due to regulation, lenders can only reduce their stress tests so far.

Retained interest loans may also cause problems for lenders that rely on the securitisation market for funding, which is perhaps why we haven’t seen them to date.

But if it were possible and done sensibly, it would offer minimal additional risk to the lender, while also having the dual effect of boosting sector activity.

 

Product transfers and top slicing ‘conventional ways’ lenders can up activity

There are also more conventional ways lenders can help drive activity in the market.

For a start, not all of them have product transfer offerings or, if they have, they are fairly limited. In a market where new business is harder to come by, surely retaining the business you have already got becomes imperative?

And what about top-slicing? Some lenders do consider borrowers’ other assets and income, but many don’t. And even when they do, the process is rarely transparent.

I don’t profess to have all the answers. But in a market that is no longer benefitting from the activity boosting power of low rates, innovative criteria offer our best hope of breaking out of the slump.

Know Your BDM: Mark Newman, Hampshire Trust Bank

Know Your BDM: Mark Newman, Hampshire Trust Bank

Which locations do you cover in your role at HTB?

I’ve recently been promoted from lending manager to the new BDM for East Anglia, focusing on HTB’s specialist mortgages. I cover from Essex to Buckinghamshire, up to Northamptonshire, across to Norfolk and back down to Essex again. I’m chomping at the bit to get out on these roads and build relationships with brokers across the region.

 

What personal talent/skill is most valuable in doing your job?

Without a doubt, you need to be a people person and listen to brokers – they’re our eyes and ears on the ground. While face-to-face meetings are still invaluable, the pandemic has also brought a fundamental shift in the way we communicate. While one firm may prefer face-to-face meetings, another broker might be more comfortable talking online or over the phone. Adapting to different people’s communication styles is a BDM skill for sure.

It’s important to be transparent and not shy away from difficult conversations. While it’s important to work with the broker to find a solution for the client, there are also times when, as a BDM, a quick ‘no’ is best if the deal really doesn’t fit, which is why keeping an open dialogue with the broker is essential.

 

What personal talent/skill would you most like to improve on?

I think there are always ways in which you can grow and develop. For me, the transition from moving from lending manager to BDM meant I had to dig deep and really push myself, with a focus on developing my soft skills. For 2024, one of the areas I am going to work on is public speaking – specifically my presentation skills, making sure I’m confident in my ability while also leaving my own mark. With my head office experience, I can speak with confidence about what a good deal package looks like, so I’ll be starting with that.

 

What is the hardest part of your job?

I love it now, but the hardest part of the job for me was getting used to being out on the road. Shifting from an office-based environment required a huge mindset change; knowing the right time to beat the traffic on the M25, mainly. Thankfully after a few weeks, my favourite days are the ones when I get on the road. Understanding how I can best support brokers and their clients drives me. Now, I’m not sure if I could go back to a full-time role in the office.

 

What do you love most about your job?

I love overcoming barriers, breaking down a deal and working with brokers to provide options for their clients. There is nearly always a solution to be found if we can structure the deal in the right way.

 

What is the best piece of career-related advice you’ve ever been given? Who gave it to you?

It may not be career advice, but the three things I live by were given to me by my mentor and life coach Maria:

  1.  ‘Venture outside your comfort zone.’ I honestly believe this is where you grow within your career and life.
  2. ‘Be kind.’ Things may not go your way, but being kind will always lead to better conversations.
  3. ‘Never stop asking questions.’ There are always opportunities to learn in life, and asking the right questions will guide you well.

 

How do you keep up to date with developments in the market?

I personally use LinkedIn and follow brokers, the key publications (including Mortgage Solutions and Specialist Lending Solutions), and I enjoy my subscription to the Financial Times. I check these at the start of each day to stay updated on the latest opinions, challenges and changes. It all improves my BDM instinct, helping me channel my inner Mystic Meg; spotting trends that might repeat themselves in the future. In the world of mortgages, this is no easy feat.

 

What is the most quirky/unique property deal you’ve been involved in?

I was the lead for a purpose-built student accommodation (PBSA) deal, with a commercial unit below. This was a complex property and ownership structure, so aligning the case with our own principles was a learning curve for everyone. I formed a great working relationship with the broker as we navigated the situation to deliver for the client.

 

Tell us about your trickiest case – what happened and how did you resolve the problem(s)?

Recently, there was a deadline to complete a multi-unit freehold block (MUFB) consisting of three properties that had 13 units in total, and the client would have been hit with substantial fees if the loan was not repaid on time. Then, one of the conditions of the mortgage couldn’t be satisfied due to a conveyancing issue.

I worked closely with the broker and internal team to find a solution that addressed the concerns and met the client’s deadline for the remortgage. In the end, the remortgage went through on the deadline day, leaving both a happy broker and a relieved applicant. Phew.

 

What was your motivation for choosing this career?

I love people and property (not to mention the industry itself). It’s a forever changing market with something different each day. I’m planning a property investment myself, as I’m sure that having skin in the game will make me a better BDM and help me understand clients better.

 

If you could do any other job in the property sector, what would it be and why?

In the future, once I have fully established my personal brand as a BDM, I would like to see myself grow into a more senior role to support other young professionals on their journey within the industry. Eventually, I would like to develop properties and a wider portfolio. I currently have my Level 2 in electrics, and I would look to further my training.

The property sector is vast and exciting, and constantly changing, which means there are always new opportunities to discover.

Hanley Economic adds to buy-to-let range

Hanley Economic adds to buy-to-let range

The two-year fixed rate, available at 5.35 per cent, comes with a free valuation and a £700 arrangement fee.

The variable discount ex-pat BTL mortgage is priced at 5.89 per cent, representing a 2.6 per cent discount from the society’s standard variable rate (SVR) of 8.49 per cent. The deal is available for purchases and remortgages.

Both deals are available up to 80 per cent loan to value (LTV), on an interest-only basis and with a minimum loan size of £30,000 and maximum loan size of £500,000.

Borrowers are assessed on a case-by-case basis.

David Lownds (pictured), head of products and marketing at Hanley Economic Building Society, said: “We fully appreciate that the BTL lending landscape remains challenging for sections of the landlord community, but it will also continue to provide a wealth of opportunities along the way, provided they have access to a range of options that can help meet their changing needs.

“Our ex-pat offering was first introduced back in 2020 following substantial due diligence and extensive intermediary feedback and, with UK investment opportunities proving to be increasingly attractive, we hope this new offering will prove to be a popular option in what is a somewhat underserved area of the BTL market.”

Earlier this year, the building society brought out a retirement interest-only (RIO) mortgage offering.

Property investors remain confident despite market challenges – MFS

Property investors remain confident despite market challenges – MFS

The Market Financial Solutions (MFS) survey showed that 53 per cent of people with property investments felt positive about the outlook for their assets. Just 14 per cent said they were pessimistic. 

Looking ahead, 38 per cent of respondents believed it would be easier to manage their investments compared to last year. However, 56 per cent were worried about the UK economy entering a recession, which was confirmed earlier this month. 

Of the respondents with buy-to-let (BTL) properties, 63 per cent had concerns about complex regulations. Some 56 per cent said increasing regulation was putting them off from investing in more property. 

MFS’ survey of 2,000 people found 16 per cent held a property investment. 

Paresh Raja (pictured), CEO of MFS – which announced plans to refund valuation fees for bridging customers earlier this month – said: “First and foremost, it’s notable that one in six UK adults holds some form of property investment, underlining the lasting appeal of bricks-and-mortar among retail and sophisticated investors alike. What’s more, we can clearly see that optimism far outweighs pessimism among property investors at present.

“Quite rightly, though, investors are evidently mindful of the challenges impacting their property portfolios. Concerns over the now-confirmed onset of a recession loom large, while escalating regulation – particularly in the BTL space – is another concern. 

“It will be intriguing to see how the upcoming general election either eases or exacerbates these worries. As a lender, we know that people dislike uncertainty. So, greater clarity around the state of the economy and the future direction of housing and investment policy would undoubtedly help people better manage their investment strategies in the short, medium and long term.” 

Aldermore reports £15bn in net lending in H1 2024

Aldermore reports £15bn in net lending in H1 2024

According to the latest financial results from Aldermore, this reflected “subdued lending markets”.

The lender said that, despite this, it was able to deliver “targeted lending growth” in buy to let (BTL) and asset finance and maintained a “disciplined price approach across all portfolios”.

Aldermore, which slashed rates in January, reported an operating profit before tax of £132.8m, which is an increase from £117m in the same period the year before.

The bank reported a net interest margin (NIM) of four per cent, which is an increase from 3.79 per cent in H1 2023.

Steven Cooper (pictured), CEO of Aldermore Group, said: “We’re pleased with our performance in the half, delivering strong underlying profits supported by increased revenues, a fall in impairments and steady growth in customer deposits despite fierce competition.

“This has been achieved against a backdrop of difficult economic conditions and a property market that has been at its most subdued in many years. We’re now supporting over 800,000 customers – helping those that the traditional high-street banks typically overlook, to ensure they get the support to go for it in life and business.”

He continued: “Looking ahead, we’re optimistic about what the future holds. Our BTL and asset finance businesses have been performing particularly well and, with confidence slowly starting to return to the property market, we think we’re well-placed to take advantage of improving conditions.

“However, there is no room for complacency as economic headwinds may persist in 2024. That’s why we continue to maintain a strong and resilient capital and funding position, while investing in our people and technology so that we can build great products and services for our customers.”

HTB adds flex tracker; Buy to Let by Foundation launches HMO deals – round-up

HTB adds flex tracker; Buy to Let by Foundation launches HMO deals – round-up

The Flex product is limited edition and available on a two-year discounted rate. It is available across HTB’s buy-to-let (BTL) and semi-commercial ranges. 

Borrowers can sell their property the loan is against or lock into a fixed rate deal within the two-year period without any early repayment charges (ERCs). 

HTB said the product would be suitable for investors who wanted to keep in line with the local market but would probably not be ideal for borrowers who wanted to refinance to another lender within the two-year term, as ERCs would apply. 

The Flex product is available up to 75 per cent loan to value (LTV), with BTL rates starting from 7.8 per cent for a fee plus option, 8.8 per cent for ERC plus, and 9.3 per cent for ERC Lite. 

The respective semi-commercial rates are at eight per cent, nine per cent and nine-and-a-half per cent. 

Chris Daly (pictured), managing director of specialist mortgages at HTB, said: “We’re committed to innovation, and our new flexible mortgage tracker is a bold step forward.

“Driven by broker feedback and a desire to try something new that will genuinely add value for brokers, we’ve reimagined a conventional tracker to be more flexible. This product will appeal to developers who are happy to tenant new developments, before selling down over time as well as giving existing investors the ability to track, fix or even sell during the initial term depending on their needs.”

He added: “The short-term flexibility it offers allows borrowers to adapt to changing personal and market circumstances, recognising that we can’t always accurately predict the future.

“By empowering investors and developers with better strategic decision-making tools, this tracker enables them to navigate uncertainty effectively.” 

 

Buy to Let by Foundation launches two HMO fee-assisted products 

Buy to Let by Foundation, the BTL brand of Foundation Home Loans, has added two houses in multiple occupation (HMO) fee-assisted products to its range. 

The products have a 1.25 per cent fee, come with a free valuation and no application fee. 

They are available up to 75 per cent LTV and the two-year fix is priced at 6.69 per cent, while the five-year fix has a rate of 6.39 per cent. 

The lender also launched products within its F1 criteria, which is for borrowers with an almost clean credit history. It has added standard buy-to-let products within this range, with two-year fixed rates starting at 6.39 per cent and five-year fixes at 5.94 per cent. Both have a one-and-a-half per cent fee. 

There are also green five-year fixes available for portfolio and non-portfolio landlords improving the energy efficiency of their properties. These have a rate of 5.99 per cent for F1 borrowers and 6.14 per cent for F2 borrowers. 

Tom Jacob, director of product and marketing at Foundation Home Loans, said: “We’re very pleased to be able to launch these brand new, fee-assisted HMO products within Buy to Let by Foundation, particularly as they also come with no application fee and one free standard valuation. As advisers with HMO landlord clients will know, valuations for these types of properties can be expensive so this should be a considerable saving for clients from the outset. 

“We continue to offer a strong range of both standard BTL products, while our specials range for landlords remains at the same pricing as when we launched them in January, offering highly competitive rates for those clients seeking to either refinance their properties or purchase in order to add to their portfolios.”

“At Foundation, we are seeing strong ongoing landlord appetite and activity, and we’re here to work closely with advisers and their clients to ensure they get the right finance at competitive rates,” he added. 

Aldermore hires Mott as CRO

Aldermore hires Mott as CRO

She joins Aldermore – which slashed rates in January – from the Commonwealth Bank of Australia, where she was CRO and executive general manager of the group’s enterprise risk function from 2019.

Before that, she worked at Marsh as CRO of Mercer Pacific from 2014, and has also held roles at BT Financial Group and Westpac Banking Group.

Steven Cooper, CEO of Aldermore, said: “I’m delighted to welcome Michelle to the team. Her extensive experience will be invaluable for Aldermore.

“I’m confident that her expertise and leadership will further strengthen our risk management capabilities as we seek out more avenues to innovate and grow our footprint in the UK.”

Mott added: “I’m thrilled to be moving to the UK to lead Aldermore’s risk management strategy. I’m looking forward to working with the talented team already in place and seek to enhance the risk function whilst playing a leading role in the bank’s future success.”