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Fleet relaxes criteria on blocks of flats

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  • 16/04/2021
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Fleet relaxes criteria on blocks of flats
Fleet Mortgages has relaxed criteria on blocks of flats to widen the number of landlord developers it can serve.

 

The buy-to-let lender has changed its exposure limit for developments, conversions and blocks of flats from 20 per cent, or one unit, of a block to a new sliding scale.

Fleet will now consider lending in a block of four or fewer flats up to 100 per cent of that development. If the block has five or more flats it will lend against two of the flats, or 20 per cent.

In a block of ten flats, Fleet will lend against a maximum of two. Exceptions will be considered.

Other criteria changes include:

Fleet will no longer take a first charge on the freehold, only a legal charge, if there is a connection between a freeholder and a leaseholder within a property,

The minimum gross external floor area is being reduced from 35 to 30 square metres for studio flats in urban areas.

Portfolio landlord borrowers will no longer be required to provide an asset or liability statement for all applicants owning four or more properties. Only the main applicant will be required to provide the statement.

Steve Cox, chief commercial officer at Fleet Mortgages, said: “The idea is to allow Fleet to lend on an increasing number of properties, to an increasing number of landlords, and to ensure we are not placing too many obstacles or conditions on risk-worthy borrowers and properties.

“In particular these changes will help open the door, particularly to those who are investing in conversions, flats and blocks, plus it will mean less onerous provision of documents for portfolio landlords.

“As always, we will keep a close eye on our criteria to ensure it is fit for purpose both now and in the future.”

 

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