Bank of Ireland cuts high LTV rates, Clydesdale shrinks BTL range – round-up
Bank of Ireland has cut both its two-year and five-year fixes at 85 per cent LTV with £995 fee to 3.11 per cent – down from 3.23 per cent and 3.29 per cent respectively.
Meanwhile, the Post Office products at 85 per cent LTV with a £1,495 fee have both been cut to 3.07 per cent – down from 3.13 per cent for the two-year and 3.26 for the five-year deals respectively.
Meanwhile, Clydesdale Bank has made several product changes including as major withdrawal of buy-to-let (BTL) products.
The overhaul has left it with just seven new business buy-to-let products, only one of which is available at 60 per cent LTV and that is restricted to London and the South East.
The lender has also stopped accepting non-sterling income for non-regulated buy-to-let mortgages, a move replicated by its sister bank Virgin Money.
As part of the BTL cull, Clydesdale removed all BTL three-year fixes and all fee-free two-year and five-year fixes at 60 per cent LTV.
It also increased the 60 per cent LTV large BTL loan two-year fix to 2.19 per cent.
But a 75 per cent LTV two-year fix with £1,999 fee at 2.59 per cent was introduced.
From its residential range, Clydesdale withdrew three-year fixes for newly qualified professionals.
However, it introduced new two-year and five-year fee-free products at 75 per cent LTV and a five-year fix at 85 per cent LTV at 3.19 per cent.
It also increased rates on product transfers at 75 per cent, 85 per cent and 90 per cent LTV.
Clydesdale and Yorkshire Bank add higher LTV products
The lenders, which are part of the Virgin Money group, are widening their range after some deals were temporarily withdrawn at the end of September.
The additional products are:
- A pair of 80 per cent loan to value (LTV) zero fee residential deals, with the two-year fix at 2.28 per cent and the five-year version at 2.59 per cent.
- A pair of fee-free buy-to-let deals at 75 per cent LTV, with the two-year fix at 2.84 per cent and the five-year at 2.79 per cent.
- And an 85 per cent LTV five-year fix for professionals at 3.09 per cent, also with no fee.
The lenders have increased the 85 per cent LTV newly qualified professional five-year fixed rate to 3.29 per cent.
And a pair of five-year fix product transfers for professionals at 85 per cent and 90 per cent LTV have been also been increased.
Platform pulls 90 per cent LTV deals as Clydesdale increases rates
Platform has temporarily pulled a raft of high LTV mortgages.
This includes its fee-free five-year fix and 85 per cent LTV as well as its two- and three-year fixes at the same tier.
The lender has also pulled its two-, three- and five-year fixed products at 90 per cent LTV after launching them at the end of last month.
Only one 85 per cent LTV mortgage remains, which is the five-year fixed at 2.44 per cent and a product fee of £999.
A spokesperson for the lender said: “We have temporarily withdrawn some of our mortgage products as we focus on completing the applications we have received to date.
“We’re seeing an unprecedented demand for our mortgages and we’re continually reviewing the products we have on sale to ensure we are balancing the volume of new lending requests with continuing to offer a high standard of service when processing applications.”
Clydesdale ups rates
Clydesdale has risen rates on two-, three- and five-year fixes by up to 0.44 per cent while interest-only mortgages and fixed rate products for loans above £1m have been increased by 0.15 per cent.
Some of its professional and newly qualified professional products have gone up by 0.15 per cent too.
Across its buy to let offering, Clydesdale has increased fixed rates by 0.15 per cent.
For existing customers, 85 per cent LTV and 90 per cent LTV fixed rates have risen by up to 0.5 per cent.
The bank has also withdrawn some of its mortgages. These include the exclusive 75 per cent LTV two-year fixed mortgage at 1.19 per cent and the buy to let two-year fixed purchase special at 75 per cent LTV.
Clydesdale also removed the free valuation incentive for purchase products, excluding those in its fee offer ranges.
A spokesperson said: “We’ve made changes to existing residential and buy to let rates to help service existing customers and manage pipeline applications.
“We keep our products under constant review and these changes will allow us to balance demand with providing the best level of customer service.”
Anderson Harris hires former Clydesdale Bank BDM
Rimmer (pictured) spent 11 years at Clydesdale, according to his LinkedIn profile. He held the role of BDM, covering London, for four years.
His experience lies in complex residential and buy-to-let transactions, and he also specialises in placing mortgages for self-employed borrowers.
Adrian Anderson, director of Anderson Harris, said: “Tom is a well-liked, experienced mortgage professional and we’re delighted to have him on board.”
He added: “Tom joins our energetic and dynamic group of advisers and will no doubt contribute not only in assisting clients but also sharing his experience and strong market knowledge with the rest of our team.
“As someone we have had our eye on for a long time it is superb news for us that he has chosen Anderson Harris as the right place to develop his career as an adviser.”
Platform withdraws zero fee deals up to 90 per cent LTV; Clydesdale cuts rates
Platform previously withdrew its fee free 90 per cent LTV deal on 8 July to allow it to manage its service levels, but then brought the product back.
The lender has temporarily removed the deal, but a 3.29 per cent five-year fixed at 90 per cent LTV, with a fee of £1,499, remains on offer.
Two other zero free mortgages have been temporarily removed from Platform’s range; a two-year fixed zero fee product from 60 per cent to 80 per cent LTV and a five year fixed zero fee product at 85 per cent LTV.
A spokesperson for Platform said: “Due to unprecedented demand we have made the decision to pause applications for the 90 per cent LTV fee free range and are now withdrawing it from the market temporarily. However, the 90 per cent LTV fee paying product remains available.
Meanwhile, Clydesdale Bank has cut the rate of its two-year fix at 75 per cent LTV from 1.57 per cent to 1.52 per cent, and lowered the cost of its five-year fixed deal at 80 per cent LTV from 1.94 per cent to 1.88 per cent.”
Clydesdale and Virgin Money remind brokers to notify them of borrower changes
The lenders, which are part of the same group, told Mortgage Solutions they had sent a reminder to brokers of its policy to update it if borrower circumstances changed as part of their commitment to responsible lending.
This could include being furloughed, loss of overtime or commission payments, or being made unemployed, the lender said.
“We understand that many peoples’ lives have changed in recent months,” it in a message to brokers.
“As we continue to assess mortgage applications, it’s important that we take into account your customers’ current circumstances.”
It continued: “You must let us know if there have been any changes to a customer’s circumstances since you submitted an application to us.
“Examples of changes could include unemployment, furlough, loss of overtime or commission.
“If things have changed after you have submitted an application, please tell us and we will assess your customer’s current circumstances against our policy at the time of the original application.”
Virgin Money and Clydesdale restart lending at 90 per cent LTV
The lenders are launching a wider range of products, including buy-to-let up to 80 per cent LTV and residential at 90 per cent LTV.
The deals will be supported with a mix of physical and non-physical valuations.
And temporary limits on loan sizes and property values will be removed, meaning the lenders will be accepting applications for large loans, shared ownership, professional and new build cases.
It comes after the government announced physical valuations can again take place in England from this week.
Physical valuations will also be booked in England for pipeline cases requiring a physical valuation.
And this will be applied to pipeline cases in the rest of the UK as soon as restrictions in other areas are eased.
Virgin Money and Clydesdale increase LTVs and update borrower income assessment
The lenders have also overhauled their income affordability assessments, which include not allowing borrowers using either the employed furlough or self-employed income support programmes when assessing affordability.
No forms of variable income will be considered with affordability only assessed on basic salary.
Self-employed customers will also need to provide their last three months business bank statements to evidence continued turnover.
And for BTL, personal income will not be accepted on BTL applications where there is a rental shortfall between 100 per cent and 145 per cent.
A broker communication sent today by Virgin Money outlined the product range details, and the lender confirmed to Mortgage Solutions that the same details will be sent out to brokers from Clydesdale Bank tomorrow.
The new product range will be available from 17 April and extends the maximum loan to value (LTV) on residential remortgage cases to 75 per cent and for all BTL cases to 60 per cent.
A broker communication sent today showed the new range of products is available for properties valued between £80,000 and £500,000 and come in two-, three- and five-year fixed rate versions.
The home purchase deals are available at up to 65 per cent LTV and start at 1.62 per cent, with a two-year tracker available for existing customers.
The changes to affordability policy do not impact applications received before 17 April, which will continue to be assessed on a case-by-case basis, the lender said.
The lender had to remove its purchase products from the market and cut its maximum loan to value as it dealt with the restrictions from the coronavirus.
Residential remortgages were limited to 60 per cent LTV with BTL deals capped at 55 per cent.
Virgin Money suspends new purchase apps; caps remo to 60 per cent LTV
The lender is only accepting remortgage applications up to 60 per cent loan to value (LTV) on residential properties and has tightened loan and property values.
For buy-to-let applications the maximum LTV is 55 per cent, again only for remortgages.
It has made the changes as a result of the restrictions on valuations due to the coronavirus crisis.
A message on its website said that while it is using automated valuation models (AVMs) and desktops wherever possible for remortgage business, it had to take a difficult decision and temporarily suspended new purchase applications.
“This is a decision that we have made reluctantly, but feel that it is sensible in light of the restrictions the industry faces, and allows us to continue to help those existing customers who are in need of immediate support at this time,” it said.
The lender, which includes Clydesdale Bank and Yorkshire Bank after last year’s merger, confirmed it would progress pipeline cases where physical valuations have already been obtained or are not needed.
However, applications which require a physical valuation will be put on hold.
It added: “We appreciate that this will be a stressful time for many of your clients in the process of buying or selling a property.”
Residential remortgage applications are being accepted up to 60 per cent LTV, for loan sizes up to £300,000, with a minimum property value of £80,000 and maximum of £500,000.
For buy-to-let remortgage applications, the maximum LTV is 55 per cent with a maximum loan size of £275,000. A minimum property value of £80,000 and maximum of £500,000 applies, and the lender said it is unable to accept personal income cases.
Clydesdale pulls out of bridging market – exclusive
A spokesperson for CYBG, parent company of Clydesdale, said: “We launched bridging loans in pilot form earlier this year.
“We are always willing to try new things and, while the pilot results were not as strong as we would have liked, we think it’s right to have tested the market.
“Going forward we will continue to focus on supporting our core areas of residential and buy-to-let loans.”
Bridging applications will be accepted by the bank until the close of business on 11 November.
Any cases that have already been accepted by CYBG will be honoured. The bank will be issuing offers until 5pm Monday 25 November. Offers are valid for 90 days.
The pilot was launched in February. At the time of the launch, CYBG cited the bridging market’s resilience over the last two years and its integral role in the home buying process as its reasons for dipping a toe in the short-term lending market.
CYBG is made up of Yorkshire Bank, Virgin Money, B and Clydesdale Bank.
Last month, CYBG obtained a single banking license for the combined group of companies and can now begin its rebrand to Virgin Money.