Criteria Watch
It has been another very busy month for criteria updates, with lenders finding increasingly inventive ways of standing out from the competition and delivering innovative products to help brokers provide solutions to their clients. Here are some of the highlights:
Residential
The Hinckley & Rugby Building Society announced that it will now offer split mortgages that are tailored for first-time buyers who are being helped financially by their parents. Split terms are available across all of the building society’s residential mortgage products, including those which may appeal to later life borrowers.
Furness for Intermediaries also improved its first-time buyer proposition with a new range of mortgages at 95% LTV.
For borrowers with minor levels of adverse credit, The Mortgage Lender unveiled its unsecured arrears residential product to the whole of the market following a pilot with key distributor partners. The product adds a new tier of unsecured arrears for applicants with limited unsecured arrears in the last 24 months.
And Vida Homeloans simplified its product range, including basing contractor income on day rate x 46 weeks and the introduction of a new Help to Buy proposition in England, Wales and Scotland.
The Tipton and Coseley Building Society announced a range of improvements to its proposition, including the use of most recent year’s accounts for self-employed applicants and the ability to consider lending on ex-local authority flats. Large properties where there is an annexe let out on an AST can now also be considered and returning ex-pats are accepted on an owner occupier basis, provided that the mortgage is applied for within three months of them returning and that they can evidence that they will be in employment on their return.
Buy to Let
Landlords buying or remortgaging in an SPV have been delivered a wealth of new options with Nottingham Building Society, Mansfield Building Society, Newbury Building Society and Pepper Money all unveiling limited company Buy to Let products.
Aldermore Bank relaunched its Buy to Let proposition, with the maximum term extended from 35 to 40 years and maximum loan limits increased on 75% and 80% LTV. Aldermore has also added new products for portfolios up to £5m and reduced HMO and multi-unit freehold products.
Zephyr Homeloans reduced its ICR requirements on HMOs, multi-unit freehold blocks and flats above commercial property, from 155% down to 135% for limited companies and to 150% for individuals. Zephyr has also reduced its ICRs for new build properties, with different requirements depending on circumstances.
The Mortgage Lender will now accept Buy to Let properties in Anglesey and the Isle of Wight and has removed its portfolio cap of 10 properties. In addition, the lender has increased its maximum loan size from £2m to £3m up to 70% LTV and will now accept HMOs to be permitted over leasehold flats.
And Tipton and Coseley Building Society announced that it will accept foreign currency deposits on ex-pat Buy to Let
Equity Release
Hodge has lowered the minimum age on its residential interest-only mortgage from 55 to 50, in line with its retirement interest-only mortgage. The renamed 50+ residential interest-only mortgage offers a maximum lending age of 95 and free legal and valuation services on properties up to £1m.
Earned income up to age 80 will be considered and future pension, investment and rental and benefit income will also be taken into account at application stage. Hodge also accepts the sale of a property as a repayment vehicle.
Bridging
Octane Capital increased the level of works permitted on refurbishment bridging, from 50% up to 100%-plus of the current market value of a property for heavy refurbishment projects. It has also enlarged both the maximum day one LTV and maximum LTGDV up to 75%.
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