However, following this, we have seen a handful of lending propositions pausing new business channels due to capacity, servicing and/or tech issues.
This is not to point a disparaging finger at these lenders in any way, shape or form as decisions like this are certainly not taken lightly, but what it does highlight are the issues facing brokers and their clients in securing the right deal for them at the right time with the right lender.
This is an issue which is likely to continue but there are also many positive moves being made by a host of lenders in the buy-to-let space to support brokers and their landlord clients.
Product launches
From a product perspective, Precise Mortgages updated its refurbishment buy-to-let mortgage range to help landlords make their portfolios energy efficient. This includes the addition of exit products, a change from the previously offered combination of short-term finance with a long-term exit.
Options differ depending on the kind of refurbishment work being carried out.
For those with a property which has an EPC rating of C or above, or is awarded a C following renovations, the exit 1 refurbishment product offers rates from 3.79 per cent. For works which include some form of energy efficiency such as the fitting of double glazing, upgrading a boiler or adding loft insulation, rates on the exit 2 refurbishment product start from 3.89 per cent. For works to making a property habitable, the exit 3 standard product offers rates from 3.99 per cent.
Foundation Home Loans launched a ‘Summer Special’ which sees a 40bps rate reduction on its previous five-year fixed rate limited edition buy-to-let product. Available as part of its F1 product range – for borrowers with an almost clean credit history – the ‘Summer Special’ five-year fix, offered up to 75 per cent loan to value (LTV), comes with a rate of 4.59 per cent and an interest coverage ratio (ICR) of 125 per cent at pay rate for limited companies.
The maximum loan available is £1m, and the product is available for both limited company or individual landlord borrowers looking to either remortgage or purchase. It also comes with one free standard valuation, no application fee and a product fee of two per cent.
In addition, West One Loans introduced a two-year discounted tracker range for landlords with non-standard properties. The range starts at 3.54 per cent and is open to landlords wishing to buy or refinance a house in multiple occupation (HMO), a multi-unit block (MUB) or another specialist property.
Criteria updates
Turning our attention to criteria, Hampshire Trust Bank has increased three of its limits relating to short-term let (i.e. holiday let) properties.
Firstly, the maximum number of short-term lets allowed in a single portfolio has been increased from four to 10. Secondly, the maximum loan amount on a single short-term unit is now £1.5m, increased from £1m and, thirdly, the maximum exposure to short-term lets in a portfolio is now £5m, increased from £2m.
The specialist lender has also enhanced its specialist buy-to-let offering, which includes limited company, HMOs and semi-commercial, by increasing its maximum loan amount to £25m, up from £15m.
As the holiday season comes to a close, I expect increased activity across the buy-to-let arena to emerge and lenders will need to carefully manage their volumes and capacities in order to maintain the forward momentum generated across the sector in 2022 thus far.
