Leeds BS adds HMO product as Pepper Money, Paragon and Magellan update ranges – roundup

Leeds Building Society is offering specific two-year fixed rate products tailored to small and large HMOs based on planning and licensing requirements.

Rates stand at 1.99% available up to 60% loan to value (LTV) with a £999 fee for small properties, while for large properties they are at 3.59% up to 70% LTV with a £1,999 fee and at 3.84% up to 75% LTV with a £1,999 fee.

Matt Bartle (pictured), Leeds Building Society’s director of products, said that in addition to the bespoke products, it has refined and improved its lending criteria to align with planning and licensing requirements for the two types of HMO.

He added: “We also recognise the higher costs of buying and maintaining larger properties – for example, we’ve increased both LTV and maximum loan size, to 75% and £750,000 respectively, compared to our standard buy to let mortgages, and the maximum number of bedrooms is now eight.

“More landlords seeking higher yields are likely to move into this specialist area, which is a well-established part of the private rented sector, particularly in university towns and urban areas with higher housing costs. A healthy housing market needs a mix of tenures, including homes for rent.”

Pepper Money launches BTL limited edition

Pepper Money has launched a range of five-year fixed rate buy-to-let (BTL) limited edition products, with rates starting at 3.28%

The range features a special flat fee option, which is available at 3.28% up to 75% LTV with a completion fee of £3,950.

There is also a range of five-year fixed rate products with a 1% completion fee. These rates are available for 3.37% up to 65% LTV, 3.47% up to 70% LTV, 3.57% up to 75% LTV and 3.77% up to 80% LTV.

Magellan reduces rates and application fees

Magellan Homeloans has reduced the majority of its fixed rates on residential mortgages and is cutting standard administration and valuation fees by up to 50% for applications received by the end of January.

Fixed rates across its credit repair range have been reduced between 0.75% and 2.5% while two of its near prime fixed rate products are being cut by 0.40%.

Fixed rates on the remaining two near prime mortgages are staying at their existing competitive rates.

The rate cuts apply to two and three-year fixed, including the fee-free options which have no application fees or completion fees, free standard legal fees on remortgages and £450 cashback on mortgage purchase.

Simon Read, managing director of Magellan, said that 2018 had been a big year for Magellan.

He added: “The success of our fees free offering demonstrates that borrowers do look at fees when making mortgage decisions, so it made sense to hold a January Sale when money is always tighter than usual but people are starting to make plans for the year, including moving home.”

Paragon refreshes BTL range

Paragon has refreshed its range of mortgage products for portfolio and non-portfolio landlords.

Portfolio highlights include five-year fixed rate mortgages at up to 75% LTV, with no application fee, free mortgage valuation and £250 cashback.

The new five-year mortgage products include an initial interest rate of 3.80% for portfolio landlords looking to purchase or remortgage single, self-contained units (SSCs) and 3.90% for landlords seeking finance for houses in multiple occupation (HMOs) and multi-unit blocks (MUBs).

All products are available to individual landlords, as well as those operating in limited companies and limited liability partnerships and include an interest coverage ratio (ICR) starting from 4%.

John Heron, director of mortgages at Paragon, said: “The cost certainty that a longer-term fix provides will be an appealing prospect to many as the Brexit process continues into 2019 and landlord taxation takes the next step up.

“By adding products into our range that remove many of the up-front costs associated with arranging finance, we aim to give landlords more flexibility to decide the best route forward for their business.”