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Coventry BS launches 95 per cent LTV deals; TSB and Gatehouse make BTL changes – round-up

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  • 24/01/2020
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Coventry BS launches 95 per cent LTV deals; TSB and Gatehouse make BTL changes – round-up
Coventry Building Society has made a significant addition to its residential offering while three others have made changes to their ranges for investors.

  

Coventry BS launches 95 per cent LTV

Coventry for Intermediaries has launched a range of five-year fixed mortgages for borrowers with a five per cent deposit. 

The 95 per cent loan to value (LTV) mortgages allow a standard valuation of up to £670 with selected products including cashback of £500. The maximum loan size for these products is £400,000 and they are available for purchase and further borrowing. 

Products include a five-year fixed at 2.95 per cent with  and £499 product fee. A fee-free option is available at 3.18 per cent with £500 cashback. Early repayment charges (ERCs) are payable until March 2025 for both deals.

Kevin Purvey (pictured), director of intermediaries at Coventry Building Society, said: “Demand for higher LTVs has been steadily increasing, not only from first-time buyers but also from homeowners looking to take another step up the property ladder to something more substantial.  

“We feel now is the right time to better support the higher LTV market and help even more people to find their ideal home.” 

 

Cumberland BS adds holiday let

The Cumberland Building Society has launched a two-year fixed holiday let mortgage, offered throughout the UK.

The product is available at 2.69 per cent with a maximum 60 per cent LTV or at 3.49 per cent with a maximum 75 per cent LTV, subject to criteria.  

The Cumberland’s tailored holiday let lending criteria will allow it to consider cases such as occupancy restricted property and larger portfolios throughout mainland UK, and the isles of Anglesey, Arran, Mull, Skye, Lewis, Harris and Wight. 

The building society will lend up to £2m on an individual transaction and up to £3m aggregate borrowing across a portfolio of properties.  

Grant Seaton, senior business lending manager at The Cumberland, said: “Recently we’ve seen both push and pull factors lead to the increasing attractiveness of holiday let investment. 

“It’s a niche that comes with its own challenges and quirks, and that’s why we feel it’s important to provide mortgage products that are specifically designed for holiday let investors.”

 

Gatehouse cuts retention application fees 

Gatehouse Bank will reduce buy to let (BTL) application fees to £499 for eligible customers reaching the end of their fixed term. 

The product transfer offering will have the same rates as the lender’s existing products and the rental rate – Standard Variable Rate plus one per cent – will take effect from the maturity date of the client’s existing product.  

The only difference will be the reduced application fee. Additionally, brokers will receive a procuration fee for the product transfer business.  

The product has no ERCs and as long as no additional finance is needed and there are no major changes to the agreement, there is no additional underwriting or revaluation of the property required.  

Danny Belton, head of lender relationships at Legal & General Mortgage Club, said: “The value of advice is incredibly important, especially when a client is coming to the end of their existing deal.  

“We’re pleased to see that Gatehouse Bank recognises the important work advisers do to ensure their clients make the right choices when it’s time to choose a new mortgage product.” 

 

TSB reduces BTL rates

TSB has made rate reductions of 0.20 per cent across its buy-to-let range.  

These include its two-year fixed and tracker house purchase mortgages with 0-75 per cent LTV tiers, as well as two-year fixed and tracker remortgages with either a free legals option or £300 cashback. 

For example, its fee-free two-year fixed deal up to 60 per cent LTV has been cut from 2.24 per cent to 2.04 per cent, the option with a £995 fee has been cut to 1.54 per cent, and the £1,955 fee product has been reduced to 1.34 per cent. 

Meanwhile, its two-year tracker remortgage at 0-60 LTV with free legals and a £995 fee has been cut from 2.24 per cent to 2.04 per cent.

Nick Smith, TSB head of mortgages, said: “There is a lot of activity in the buy-to-let market at the moment, so these reductions will prove to be very attractive to either those landlords who are thinking of switching their mortgages, or those who are considering entering the market, perhaps for the first time.” 

 

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