Fleet Mortgages continues to review lending criteria post-Leave vote

by: Carmen Reichman
  • 11/07/2016
  • 0
Fleet Mortgages continues to review lending criteria post-Leave vote
Fleet Mortgages is to accept gifted deposits and properties valued at £100,000, but also tightened many elements of its buy-to-let lending criteria in response to the Leave vote.

The specialist lender will for the first time allow gifted deposits to borrowers if they have come from their immediate family, such as a parent, sibling or grandparent.

It also dropped its minimum valuation for Houses in Multiple Occupation (HMOs) and ex-Local Authority properties from £150,000 to £100,000 in regions outside London and the South East.

The move came amid a wider overhaul of its products in response to the changing mortgage and property market in a bid to “develop more flexibility”, Fleet said.

The company added it is currently in the process of reviewing its full product range, prompted by the recent vote for the UK to leave the European Union, which warranted a “slightly more cautious approach to our lending”. It will be announcing new products very shortly, it said.

Fleet has already withdrawn the higher loan-to-value (LTV) products, including all of its 80% and some of its 75% and 65% LTVs from its mortgage range in late June, amid fears property prices may fall following Brexit.

New product changes, which took immediate effect on Friday, also saw the maximum aggregate exposure landlord borrowers can have cut from 65% to 60% for amounts of up to £2m, and a further tier of 55% introduced for loans up to £5m.

Fleet further dropped its minimum requirements for external floor area from 40sqm to 35sqm, while flats adjacent to commercial buildings no longer have to be situated in a city centre location.

For properties built within the last 10 years, Fleet added two certificates to its accepted certificates list – CRL Warranty Scheme and ICW Warranty Certificate.

Chief executive officer Bob Young (pictured) said: “When we review our criteria our aim is to maintain our responsible lending focus but to also respond to our intermediary partners’ feedback and to the changing nature of the mortgage and property market.

“Certainly, since the result of the EU referendum there has been a need to adopt a slightly more cautious approach to our lending, given the level of uncertainty about how the decision to leave might ultimately pan out for our sector and coupled with the fact that it has been an incredibly busy time for us recently.

“We are currently in the process of reviewing our full product range, in light of the Brexit vote and how the rest of the buy-to-let sector responds to it, and we will be announcing new products very shortly.”

There are 0 Comment(s)

You may also be interested in

Read previous post:
Mark Carney
Markets expect 0.25% interest rate cut this week

The first interest rate cut in seven years could be on Thursday, according to financial markets, which are pricing in...