The changes will streamline what is needed from mortgage customers but also widen the number of employed and self-employed contractors eligible for a mortgage.
The lender has also simplified its packaging requirements for employed, self-employed and contractor applications.
On the self-employed side, the lender has introduced an accountant’s certificate for cases under £1m and the minimum time trading has been lowered to two years, although two years of figures are needed.
From an employed perspective, the lender will no longer require minimum time in a current role, only one payslip is needed in the current role and one from previous role.
The minimum time in employment has been lowered to six months for both primary and secondary jobs.
Charles Morley, director of mortgage distribution at Metro Bank, said: “Purchasing a property is often a stressful process. We hope that these changes will go a little way towards easing that strain and ensuring that paperwork doesn’t get in the way of someone taking their first or next step on the property ladder.”
Foundation Home Loans cuts core BTL rates
Intermediary-only specialist lender Foundation Home Loan has lowered rates in its core buy-to-let range by up to 0.2 per cent.
Two-year fixed rates in its F1 and F2 have fallen by around 0.2 per cent, with the former coming to 6.54 per cent and the latter to 6.69 per cent at 65 per cent loan to value (LTV). Both are subject to a 1.5 per cent product fee.
The lender’s standard two-year houses in multiple occupation and short-term let fixed rate products have been lowered, beginning from 6.79 per cent and 6.94 per cent respectively.
The firm’s F1 limited edition seven-year fixed rate is priced at 6.54 per cent at 75 per cent LTV with a one per cent fee, and its F1 limited edition two-year fixed rate is 6.49 per cent up to 75 per cent LTV with a £1,495 fee.
Tom Jacob, director of product and marketing at Foundation Home Loans, said: “There’s no getting away from the fact that much of 2023 has proved to be a challenge for many landlords. However, it’s also fair to say that the back-end of the year has shown there is light at the end of tunnel with positive swap rate movement and increased competition across the sector helping to alleviate some affordability concerns.
“Our latest raft of rate reductions should further encourage landlords to evaluate their options over the closing weeks of the year and let me reassure them – and our intermediary partners – that there are more positive actions in the pipeline as we look to enter 2024 with a bang.”
Family BS lowers owner-occupier and buy-to-let costs
Family Building Society has reduced rates in its owner-occupier range by up to 0.4 per cent and its buy-to-let range by up to 0.55 per cent.
It two-year owner-occupier products for interest-only and capital repayment have been cut by 0.5 per cent and five-year products have gone down by up to 0.4 per cent.
Examples of changes include its repayment two-year fixed rates which starts from 5.74 per cent and five-year fixed rates begin from 5.14 per cent.
Interest-only two-year rates now start from 6.39 per cent, and the interest-only five-year fixed rates begin from 5.79 per cent.
For buy to let, five-year fixed rates have fallen by 0.55 per cent and start from 5.59 per cent.
Family Building Society has also introduced new two-year fixed rate option for UK landlords, limited company special purpose vehicles and expats, with rates now from 6.09 per cent.
The firm has also withdrawn its discounted variable rates barring offset, joint borrower sole proprietor and expat products.
Keith Barber, Family Building Society’s director of business development, said: “These significant reductions across our owner occupier and buy to let range will go some way to help older borrowers and landlords struggling with affordability and who need the flexibility and common-sense underwriting for which we are widely known”.
