Yes, lenders have hit the ground running this year with a clear intent to show brokers and landlords that buy-to-let is still very much a big part of their businesses.
Paragon was one of the lenders spreading good news this month with the announcement that it has now removed the requirement of a floating charge on all limited company applications, incorporated solely for the activity of holding and letting residential properties.
Furthermore, the lender will be offering free mortgage valuations and no application fee on all of its current portfolio products, and it has revamped its whole portfolio product range, including the introduction of some new 80% loan-to-value (LTV) products.
Elsewhere, Principality Intermediaries has announced it is reintroducing a number of its 70% LTV buy-to-let products including fixed and discount rates. Rates start at 2.15%.
First-time buyer BTL
There was some exciting news from Landbay when it introduced buy-to-let lending to first-time buyers for applicants who are employed and earning a minimum income of £85,000.
The lender also made it a good New Year for portfolio landlords by reducing its underlying portfolio stress tests from 125% at 5.5% to 125% at 5%. If an application fails this test, dependent on the case it says it may consider applications using up to 10% of the declared income, subject to a minimum personal income of £100,000.
Meanwhile, the Nottingham Building Society has launched a new discount buy-to-let pound-for-pound remortgage product. The two-year discount rate at 2.39% is available up to 75% LTV and comes with no fee.
Finally, New Street revealed it will no longer impose a limit on the number of properties held in a landlord’s total portfolio. The lender has also launched a range of products in Scotland.
