Barclays to stop limited company and multi-unit BTL lending
This will include unencumbered applications, with the last day for these submissions being 26 June.
The lender explained the changes along with others in a notification sent to brokers.
On the same day, Barclays is also closing further advance and transfer of equity applications through brokers on its legacy buy-to-let (BTL) platform. This will affect clients with a six-digit account number.
Any client in this situation requiring further borrowing can still do so through direct channels.
“Please be aware that we continue to accept intermediary applications for further advances for your clients with a Barclays BTL mortgage with a ten-digit account number,” the lender said.
Brokers can continue to submit buy-to-let product transfers using the online tool in the lender’s hub, irrespective of whether they have a six- or ten-digit account number.
MFS completes £17.64m bridging loan
The multi-million-pound sum was used to support a limited liability partnership’s acquisition of a portfolio of properties in central London. Collectively, the property portfolio had a market value of £27,147,000.
Paresh Raja (pictured), CEO of MFS, said: “The final outcome of Brexit may be uncertain, but investors are clearly seeking out new property investment opportunities, particularly here in London. The challenge they face is accessing the finance needed to complete on these purchases. High street banks have become increasingly risk-averse, and this has resulted in more investors turning to specialist lenders to meet their capital demands.
“This bridging loan marks a significant milestone for MFS, demonstrating our expertise in deploying large funds and handling complex cases. By being able to quickly deploy the necessary finance to our borrower, the case shows just why MFS is ideally placed to manage the needs of investors seeking large bridging loans to quickly complete on a property acquisition.”
Raja said the latest loan demonstrated its capabilities in “handling complex cases at the upper end of the property market” and “addressing the specialist finance needs of high-net-worth individuals.”
He added: “Looking to the future, MFS will continue to service this end of the market while at the same time supporting the needs of loans starting from £100,000.”
State Bank of India to offer buy to let though The Right Mortgage Network
The range provides financing up to 70% loan to value (LTV) and offers products for individuals, special purpose vehicles (SPVs), limited liability partnerships (LLPs) and limited companies. The loans are available on a fixed or tracker basis, with rates from 2.44%, over a term of three or five years.
The move follows the bank’s declaration that it will increase limited company buy-to-let lending, which is expected to grow significantly given changes to the tax system.
Stephen Banks, head of national sales for SBI UK, said: “We are delighted that our buy-to-let mortgages are available through intermediaries such as The Right Mortgage, thus ensuring a wider distribution of our buy-to-let range.
“In particular, we believe SPV/LLP mortgages will become more central in the market in the coming years. We believe our range is a compelling offer for mortgage intermediaries.”
Martin Wilson (pictured), chief executive of The Right Mortgage & Protection Network, added: “State Bank of India will be another fantastic addition to our panel, offering our members greater choice when sourcing for their clients’ BTL needs. The products that SBI can offer will add significant value for our advisers.”
Kent Reliance begins lending through LLPs
Lending to non-trading LLPs will now be considered part of Kent Reliance’s standard policy. Requirements for new applications include evidence that the company is non-trading and personal guarantees for 100% of the loan provided by all members of the LLP.
The move follows a change to Kent Reliance’s criteria in March when it began allowing buy-to-let clients transfer assets from their individual name to a limited company SPV or an LLP.
Adrian Moloney, sales director for OneSavings Bank (pictured), explained that changes to taxation in the buy-to-let sector had prompted the lender to review its policy for customers.
“Following the Chancellor’s recent changes we introduced products designed specifically for property investors who were moving their investments into a limited company. We are pleased that we can now extend the same proposition to support LLPs,” he said.