Complex Buy To Let
Ying Tan’s buy-to-let product round-up – January
Guest Author:
Ying Tan, managing director, Buy to Let ClubThe watchword of 2017 so far seems to be diversification. We’re only a few weeks into the new year and already we’ve discovered that two major buy-to-let lenders are diversifying their offerings and moving into the residential space.
Foundation Home Loans is apparently looking to launch a residential range later this year. Meanwhile Paragon – a titan of buy to let – launched into residential lending earlier this month.
Both have reiterated their commitment to buy to let but have clearly seen the opportunity that exists in the larger residential market too. And this is great news for brokers and, of course, consumers. Buy-to-let lenders are well versed in catering for more complex borrowers and there are many who will benefit from FHL and Paragon’s presence in that field.
On to this month’s criteria updates. Landbay confirmed its commitment to professional landlords with a new range including fixed-rate products from 4.20%. New products include a five-year fix from 4.40%, HMO trackers from 3.98% and expat trackers from 4.38%. Furthermore, maximum LTVs have risen to 80% on some products.
Fleet Mortgages has launched a number of new products across both its individual and limited company ranges.
The new individual products include a two-year 80% LTV fix at 3.79% and a 75% LTV lifetime tracker at 4%. Both products come with a 1% fee and rent is calculated at 125% at 5%.
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The new limited company products include a two-year 80% LTV fix at 4.39%, a 75% LTV lifetime tracker at 4.2% and a 65% LTV lifetime tracker at 4%.
All three products come with a 1.5% fee and again rent is calculated at 125% at 5%.
Aldermore has dropped its rates on a number of products with two-year fixes at 75% LTV now starting at 3.48% and at 80% LTV starting at 3.88%.
Axis Bank has also been cutting its rates. The lender’s new reduced rates apply to its two and five-year standard and specialist products. Two-year fixes are now available from 3.38% and five-year fixes from 3.95%, both at 75% LTV.
The lender also revealed that Special Purpose Vehicle (SPV) applications will now qualify for its standard range pricing on straightforward ‘vanilla’ properties.
Finally, credit must be given to Santander for starting 2017 with a positive news story for all brokers. Its plans to pay a procuration fee on retention business is a major move and will likely encourage those lenders who have yet to do so to rethink their position.