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The good market news far outweighs the not so positive – Ying Tan

by: Ying Tan, founder and chief executive, Dynamo
  • 29/06/2020
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The good market news far outweighs the not so positive – Ying Tan
After last month’s flurry of activity on the back of the housing market ‘reopening’, we’ve seen little let-up when it comes to product and criteria changes buy-to-let lenders.


Let’s get the not-so-positive news out of the way first.

Barclays has stopped accepting new purchase and remortgage applications for multi-unit properties, special purpose vehicles (SPVs) and limited liability partnerships (LLPs).

This is not overly surprising news when coming from a mainstream lender, and it will be interesting to see how long it is before Barclays returns to this type of lending.

Let’s hope it is just a temporary measure.

Ipswich Building Society has pulled its five-year standard and five-year expat buy-to-let fixed rate products.

The decision to slow the influx of applications has been made to sustain service levels after the lender experienced a 40 per cent increase in overall applications over a seven-day period compared to the previous week.

It will continue to offer its two-year standard buy-to-let and expat buy-to-let fixed rate products for purchase and remortgage purposes.

Despite the pulling of any product range being tinged with some degree of disappointment, when the reason is due to heightened demand, then it becomes far easier to take.

In terms of rate changes, The Mortgage Works (TMW) and Hampshire Trust Bank (HTB) have both increased rates on their specialist buy-to-let products.

TMW has raised rates by up to 0.5 per cent, an average increase of 0.3 per cent, for its limited company mortgages. Meanwhile, HTB has upped its lending rates by 0.25 per cent for all specialist mortgages buy-to-let and semi-commercial products. Again, these moves are not ideal for the sector but are completely reasonable under current market and economic conditions.

Now onto more positive news.

Fleet Mortgages has launched two- and five-year fixed products up to 75 per cent LTV across its standard, limited company and homes in multiple occupancy (HMO) offerings.

Fleet limited its lending to 60 per cent LTV in March in response to market conditions caused by the coronavirus pandemic, so this represents a move in the right direction.

Foundation Home Loans has made a number of changes to its buy-to-let range.

The specialist lender has increased its LTVs to 75 per cent, including HMOs and multi-unit blocks (MUBs). It has also introduced a number of criteria changes across its BTL range, including the re-introduction of a 125 per cent interest cover ratio (ICR) for limited company borrowers and basic-rate taxpayers.

InterBay Commercial has launched an enhanced product range for HMOs and MUFBs, which is available for purchase and remortgage applications. Properties up to 20 bedrooms/units can be considered with a maximum loan size of £1.5m up to 70 per cent LTV.

Larger loans will be considered on a referral basis and intermediaries should contact their senior business development manager to discuss specific cases.

LendInvest has introduced a range of updates to its buy-to-let product range, including a series of special offers available for a limited time. The lender has also reintroduced its 75 per cent LTV products for standard HMO cases up to six bedrooms, with rates available across two- and five-year fixed rate products.

Finally, Platform has reintroduced standard BTL fixed rates at up to 75 per cent LTV for purchase and remortgage in England. The maximum LTV for purchase and remortgage remains at 60 per cent LTV in Scotland and Wales.

As you can see, the good news far outweighs the not so positive and indifferent news. A trend which will hopefully continue into the summer months.


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