Last year Shawbrook Bank became a force to be reckoned with in buy-to-let and it looks set to carry that on in 2014. It recently launched a short-term heavy refurb deal, called STL6, which is a godsend for developers who prefer to purchase a property and then add value by undertaking heavy refurbishment works – as is the case for most experienced investors.
The works that can be carried out are defined by the lender as “those works requiring more than 15% of the current property value to carry out”.
The product comes with a rate of 0.89% per month at up to 70% LTV with terms up to 18 months with no minimum interest, or minimum term.
As experienced investors will attest, very few want to buy a property that is ready to be let or sold as there is no profit to be made on your investment. Shawbrook’s product is a very welcome addition to the market in an area with little competition.
Kent Reliance has reduced its minimum property value for HMOs from £250,000 to £75,000. This is hugely significant as it means landlords across the UK, for example in areas where property is much cheaper than in the South East, will be able to access Kent Reliance’s products.
Kent Reliance has also changed its criteria to allow arrangement fees to be added to the loan on its 85% LTV for HMO range. This gives the client the opportunity to gear up at a higher level and effectively borrow more.
Aldermore and Mortgages for Business’ Keystone Buy to Let Mortgages has announced it will now lend up to £1m with its premier range. It will also lend on HMOs and multi-units up to £600,000 and at 80% LTV on standard properties up to £400,000.
Finally, Accord Mortgages has reduced its booking fee from £195 to £130 and renamed it a “mortgage application processing fee”.
Ying Tan is managing director of The Buy to Let Business
