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Lender criteria changes 31.01.20

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Hodge Building Society

Criteria change: 55+ Residential Interest Only Mortgage now available from age 50

Now available from age 50, their newly renamed 50+ Residential Interest Only Mortgage has been designed with flexibility in mind. Here’s how:

  • Hodge will consider earned income up to age 80
  • They’ll consider future pension, investment, rental, and benefit income
  • Will accept sale of property as the repayment vehicle
  • Hodge will lend from age 50 – 95

They also offer free legals for remortgages, and free valuations from properties up to £1m on both purchases on remortgages.

The Mortgage Lender

BTL Enhancements… Go Live!

They have now launched some BTL Enhancements to or current proposition, these are:

  • Island Location Review – will now accept properties in bit Anglesey and Isle of Wight
  • Portfolio Cap Remove  – they have removed the number cap of 10 properties, this is now uncapped with a max aggregate borrowing of £5m – this will be assessed on a case by case basis
  • Remortgage within 6 Months – where this has been on an exception basis we will now accept as long as the property was bought with cash / bridge and applicant is an established portfolio landlord with a minimum 24 months experience or equivalent
  • Maximum Loan Increase – max loan size increased from £2m to £3m up to 70% LTV
  • HMO Leasehold Flats – they will now accept HMOs to be permitted over leasehold flats.
  • Builder Let Retention – will now allow a developer to apply for a BTL loan on a number of properties they have developed. This can range from a small number of properties unsold or as a core part of their development strategy. For a builder let retention the applicant may be a first time landlord where they are asked to fund on a standard BTL basis even if they have not owned a property in the last 12 months.  Any applications can be considered on a case by case basis

Mansfield Building Society

Have announced the launch of its Limited Company Buy to Let proposition, including product options with and without personal guarantees.

  • The Mansfield will accept companies with up to 4 UK based directors or shareholders.
  • Whilst Expats are excluded, purchasing or remortgaging a UK Holiday Let on the new Limited Company products is allowed up to 70% LTV.
  • Applications with a personal guarantee are available up to 75% LTV whilst those without are capped at 65%.

The new products are available on a 2 year discounted rate and come with a free basic valuation. The Interest Coverage Ratio (ICR) must be at least 125% at 5.5% or 2% above pay rate, whichever is the higher (excludes Holiday Lets which are based on an annual average income from seasonal rent).

Newbury Building Society

You asked; they listened: their Holiday Let mortgage now accepts Airbnb!

They can now take cases from applicants who wish to let their holiday property over shorter, more flexible rental periods.

Find out more here.

Don’t forget!

  • No credit scoring – all cases are assessed on individual merit
  • Tailored underwriting and each case individually considered
  • All types of income are considered
  • A dedicated helpdesk, open Monday to Friday, 9am – 5pm

Interbay Commercial

InterBay Commercial has reduced rates on new buy to let and HMO products.

InterBay Commercial can support your clients where others can’t, with:

  • Multiple properties on a single loan facility
  • HMO investment value considered
  • Complex proposals and ownership structures considered

Please note that these products are available for a limited time only.

Learn more by contacting your local senior business development manager or the sales support team on 0345 878 7000. Or for more information please visit www.interbay.co.uk.

The Tipton and Coseley Building Society

Please be advised of the following criteria enhancements which are effective immediately.

Residential

  • Self-employed – most recent accounts may be used to support mortgage (rather than applying two-year average). If a significant increase is reported they must be satisfied this increase is sustainable. Historic accounts are still required to support the underwriting decision
  • They will now consider lending on ex-local authority flats on a case by case basis – subject to review of location and re-saleability
  • Reverse JMSO (parent’s receiving support from their children) considered on a case by case basis.
  • Large properties where there is an annexe let out on an AST can now be considered
  • Returning ex-Pat – accepted on an owner occupier basis, provided the mortgage is being applied for within 3 months of them returning & that they can evidence that they will be in employment on their return
  • Seafarers – accepted, please refer potential cases for review prior to application
  • Properties up to 20 acres considered – no agricultural ties to apply

BTL

  • Ex-Pat BTL – They will accept foreign currency deposits (provided it is a currency of a country on our approved list of countries)

Vida Homeloans

You Said, They Did – how your feedback helps shape the way they work.

As a result of recent surveys, feedback has helped them deliver the following improvements;

  • Simplified their product range
  • Contractors – now based on day rate x 46 weeks
  • Launched a new Help to Buy proposition in England, Wales and Scotland
  • Launched a new Buy to Let hub for BTL portfolio customers, powered by eTech
  • Launched an 85% LTV option for Buy to Let
  • No longer require income & expenditure for self-funding Buy to Lets
  • Non EEA Expats – maximum LTV increased from 65% to 75% LTV
  • Launched the ‘Tell us your customers story’ feedback form – enabling you to tell them your customers story upfront, resulting in a quicker decision

Zephyr Homeloans

From High LTVs to no product fees

Submitting cases..? A breeze with eTech (BTL Hub)

They have partnered up with eTech (BTL Hub) to allow you send through background information about your client’s existing portfolio to us in a much quicker and easier way than ever before.

Want to find out more?

Visit their page or find out more about them – including full details of their product range and lending criteria

Get in touch: For help and support, call their expert intermediary support team today on 0370 707 1894