Whatever your political preferences, there is a definite feeling that collectively-held breaths have now been released.
Announcements from the new government concerning housing have been really positive with a range of targets and strategies making the headlines. How they actually achieve their aims is a whole other question, but they’re certainly making the right noises.
An innovative June
It’s in this optimistic environment that we’re now seeing more innovation.
This month we’ve seen lenders bringing things back to market, reaching out to new audiences, and there is a growing sense that we’re all building up for a big H2. With a general feeling out there that the Bank of England base rate will most likely drop, we can hope for better affordability and more product availability for consumers as lenders look to rebuild what was, for the majority of them, quite a tough first half of the year.
I, for one, am very excited about what’s to come before the end of 2024.
As always, let’s take a short tour of some of the changes from the last few weeks.
Buy-to-let launches
Metro Bank has launched into limited company buy-to-let lending this month reflecting the lender’s desire to support a wider breadth of customers. Limited companies must be non-trading, solely holding residential properties and not engaged in wider activities. Highlights of its range include a maximum loan to value (LTV) of 75%, 125% of the mortgage interest amount calculated at its standard buy-to-let stress rates, no minimum income, up to four directors/shareholders accepted as well as portfolio landlords, and a maximum age of 85.
CHL Mortgages has reintroduced its specialist CHL 2 range. This includes products for large houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs) up to 10 bedrooms or units and short-term lets. The range features options at 65%, 70% and 75% LTV and fee options at 2%, 3.5%, 5% and 7%.
All products are available to both individuals and limited companies. Minor adverse is considered and trading companies are accepted. Standard buy-to-let products in CHL 2 start from 3.21% at 65% LTV with a 7% fee.
Mansfield Building Society has launched into the Scottish market with its existing business buy-to-let, consumer buy-to-let and regulated family buy-to-let products. Available loan sizes range between £50,000 and £1m with a maximum LTV of 75%. Expat buy-to-let is included, but exclusions include special purchase vehicle (SPV) limited company buy-to-let and holiday let lending, along with some postcode restrictions in place for the Scottish islands.
Foundation Home Loans has introduced new EPC Saver products for both buy-to-let and residential. The new products are in conjunction with Vibrant Energy Matters and are designed for those who want to get their properties up to, or beyond, an EPC level C. Landlords can access both two- and five-year products up to 75% LTV with rates starting from 5.94%.
These are in Foundation’s F1 tier and feature a 1.25% fee, a free EPC Plus report and £1,000 cashback.
The product changes continue
Kensington Mortgages has announced new and reduced special rates. Buy-to-let specials are available from 3.99% for a two-year fixed up to 70% LTV with a 5% fee and from 5.79% for a five-year fixed up to 70% with no fee. Both options feature a free valuation and include limited company applications.
Reductions have been made on the lender’s 75% LTV, 3% fee specials with two-year fixes now starting from 4.89% and five-year fixes from 4.99%.
Paragon Bank has announced new limited edition five-year fixed rate products in its buy-to-let range. These feature rates start from 5.45% for single self-contained properties and benefit from free mortgage valuations. The starting rate of 5.45% is available up to 65% LTV and has a fixed product fee of £2,995. This is available to properties with an EPC rating of A, B or C. Less energy-efficient properties can access the equivalent product priced at 5.50%. These new rates are available to both portfolio and non-portfolio landlords.
Zephyr Homeloans has reduced the majority of its fixed rates by either five or 10 basis points. Its lowest rate is now 3.59% for a two-year fix up to 65% LTV. This comes with a 7% product fee and is available for properties with an EPC rating of A, B or C. Five-year fixed products now start from 4.69%. Zephyr has also introduced a new 80% LTV option on two-year fixed rates for standard properties, HMOs and multi-unit blocks.
LendInvest has extended its large HMO and MUFB offering up to 75% LTV on five-year and selected seven-year fixed term products. The change features 2% and 5% fee options, resulting in over 25 more product options for landlords. Both new business and product transfers are accepted.
West One Loans has made some criteria updates to its core buy-to-let range. The maximum loan size has been increased to £3m gross on both standard and specialist products. The ability to do foreign national and expat cases where the borrower has no existing UK property has also been added.
These changes come alongside a number of buy-to-let rate reductions in both its core and complex product ranges.
Shawbrook launched its Switch and Fix option this month to provide a more streamlined process for existing buy-to-let and commercial investment borrowers to switch to a new fixed rate when the loan term, borrower details, security properties and loan amount remain unchanged.
For eligible cases, applicants can benefit from no valuation requirement, no standard legal fees and fast decision-making.
That’s all for July. See you again after the summer break.
