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Ying Tan’s BTL round-up: ‘Lenders have been busy ringing in the changes’

by: Ying Tan, managing director of Buy to Let Club
  • 08/05/2017
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Ying Tan’s BTL round-up: ‘Lenders have been busy ringing in the changes’
Theresa May’s decision to call a snap General Election took the nation by surprise and diverted much of the mortgage industry’s attention away from the implementation of the buy-to-let tax changes.

April may have been the month the new system came into play, but by the 18th all eyes were on Westminster and looking ahead to June 8th.

Still, the buy-to-let market stops for no man and lenders have been busy ringing in the changes with a range of product launches, rate cuts and even a rebrand.


Rate moves

Accord announced it was responding to the market and will now accept applications for consumer buy to let including flats above commercial properties and flats above six storeys.

Leeds Building Society launched a range of new buy-to-let products including a fees assisted two-year fixed rate at 2.50% up to 70% loan-to-value (LTV) and a two-year fix with no early repayment charge, available up to 60% LTV at 2.34%.

Metro Bank headed into spring with some good news for limited company and LLP borrowers, revealing it would be reducing its interest cover ratio from 140% to 125% stress tested at a 5.50% interest margin as well as reducing rates across its portfolio buy to let range.


Rebrand and resi launch

Meanwhile, Foundation Home Loans announced it has completed its rebrand and launched into the residential lending space. The lender said its range is designed for clients who may have experienced a minor blip on their credit rating in the past.

I’m sure the specialist approach that Foundation has taken in the buy-to-let market will prove to be just as successful in the residential sector.

Elsewhere, Kent Reliance announced it was hiking its buy-to-let five-year fixes, with rates now starting from 3.89%, Virgin launched its lowest ever buy-to-let five-year fixed rate, available up to 60% LTV at 2.37% with a £1,995 fee and £500 cashback.

Aldermore lowered the stress rate and reversion rates on its five-year fixed rate buy-to-let mortgages. Its new affordability stress rate for five-year fixes is now the higher of the pay rate or the reversion rate + 0.75%.

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