This is ‘peak’ business time for the UK travel industry as consumers are tempted to replace the cold, wind, rain and grey skies with sunshine and clear blue ones.
Historically speaking, January has never been viewed as peak season when it comes to mortgage related activity, but that’s not to say lenders have not been busy, especially in the buy-to-let (BTL) marketplace.
Staying with the holiday and overseas theme, the Cumberland Building Society has launched a two-year fixed holiday let mortgage, offered throughout the UK.
The product is available at 2.69 per cent with a maximum 60 per cent loan to value (LTV) or at 3.49 per cent with a maximum 75 per cent LTV, subject to criteria.
The lender will consider occupancy restricted property and larger portfolios throughout mainland UK and the isles of Anglesey, Arran, Mull, Skye, Lewis, Harris and Wight.
Ipswich Building Society has also extended the availability of its holiday let mortgage products to allow applications for properties located across the entirety of England and Wales.
Previously, properties needed to be based in the society’s heartland area of Suffolk, Norfolk, Essex, Cambridgeshire, Bedfordshire, Hertfordshire and Buckinghamshire.
In addition, Principality has reduced its two-year fixed holiday let rate at 60 per cent LTV from 2.50 per cent to 2.48 per cent while Hanley Economic Building Society has introduced a new ex-pat offering into its buy-to-let mortgage range.
The society’s first venture into this growing part of the BTL market comprises a 3.49 per cent variable discount product at a maximum 80 per cent LTV.
Lenders make prominent changes
Focusing on other – but still far from gloomy – BTL areas, the start of 2020 has seen some prominent product launches, cuts and criteria changes. So, let’s highlight a selection of these.
Pepper Money has overhauled its entire range with a number of enhancements and new products, including the launch of limited company buy-to-let products.
The lender has also introduced free valuations on its standard buy-to-let range, reducing rates on its Pepper 48, Pepper 36 and Pepper 24 products and changing the required rental calculation on two-year fixed rates to the higher of the initial rate plus two per cent, or 5.5 per cent.
Foundation Home Loans has announced a series of criteria enhancements across its buy-to-let product range including changes to its interest coverage ratios and maximum loan sizes.
LendInvest has made changes to its buy-to-let product range, increasing the maximum loan size for all property types and introducing a new cashback contribution towards legal fees.
The lender has widened its definition of small houses of multiple occupation (HMOs) from six to eight bedrooms, while updating its definition of a large HMO from nine to 15 bedrooms.
The maximum loan size for both large HMOs and multi-unit freehold blocks (MUFBs) has increased to £3m, with the definition of a MUFB changing from up to six units, to up to 10 units.
Accord, Nottingham BS and TMW
Accord has relaunched its BTL range with reduced rates, extended end dates and increased cashback on house purchase products. The changes have been made across multiple terms and LTVs.
Finishing off purely on products, The Nottingham has returned to the 75 per cent LTV buy-to-let (BTL) mortgage market. Buy-to-let applications have also been widened to allow for purchases as well as remortgages.
The Mortgage Works (TMW) has reduced rates across its two and five-year buy-to-let product ranges.
At 75 per cent LTV, the two-year fix has seen its rate drop from 2.19 per cent to 1.74 per cent while the five-year fix is now priced at 2.14 per cent, down from 2.24 per cent.
At 65 per cent LTV the two-year fix has been cut from 2.34 per cent to 1.89 per cent. These products come with a free valuation, £250 cashback and include a £995 fee.
Finally, Barclays has launched a five-year fixed rate purchase product available at 60 per cent LTV and priced at 1.75 per cent. This comes with a £1,295 product fee.
In my previous article I did say that I expected 2020 to start with a bang and judging by this raft of activity I certainly wasn’t wrong.