BM Solutions aligns buy to let criteria with market response

Following market research into the requirements of contemporary landlords and their buy to let mortgage needs, BM Solutions has revised its criteria to allow for longer-term tenancies of up to three years.

While the extension of its tenancy criteria is contrary to the industry norm of 12 month agreements, it is thought the new terms will offer more choice to intermediaries when discussing investors’ requirements around the security of tenure.

As part of its on-going market research, BM Solutions will also be monitoring the impact of limited buy to let products on the market and is in talks with several distributors. The lender says it currently has no plans to launch into this sector.

It has now launched its consumer buy to let proposition however, so as to comply with the upcoming Mortgage Credit Directive (MCD) and new fields have also been added to its applications forms capturing employed and self-employed income details and residential mortgages, enabling the lender to assess landlords’ financial stability.

In guidelines issued to brokers it stressed the importance of recording this information correctly, as applicants’ personal income is considered when a lending decision is made.

SME-focused bank, Aldermore, has reported a 7% drop in its year-on-year buy to let lending.

The lender’s gross buy to let lending fell from £726m to £673m in 2015, the lender’s full year results have revealed.

Never the less, Aldermore has described its buy to let performance as robust, reporting 10% growth in the direct distribution of buy to let mortgages, which it said accounted for 19% of its overall buy to let lending last year.

The bank’s residential lending saw a steady rise of 4% in 2015 to £582m from £560m the previous year. Help to Buy mortgage sales were said to have been partly responsible for the rise and for the increase in its net interest margins.

The lender’s direct distribution channel was responsible for 9% of its gross residential mortgage lending.

Aldermore said it was ‘pleased’ with the increase in direct business which has risen by 33% year-on-year. The group reported profit before tax up by 88% to £95m from £50m in 2014.

Kent Reliance, meanwhile, brings new five-year fixed rate products to the buy to let mortgage market.

Its exclusive specialist buy to let range includes a 75% loan-to-value (LTV) five-year fixed rate mortgage with an initial rate of 4.79%.

While its 80% LTV five-year fixed rate mortgage is advertised at 4.99%. Both products come with a product fee of 2% and early repayment charges apply.

The lender is also offering an 85% LTV five-year fixed rate mortgage at 5.49%, with a product fee of 2.50% and early repayment charges.

Kent Reliance’s exclusive standard buy to let range includes a 75% LTV five-year fixed rate at 4.49%, as well as an 80% LTV five year fixed rate at 4.69%.

A product fee of 1.50% and early repayment charges apply to both products.

An 85% LTV five-year fixed rate mortgage at 5.29% is also available and carries a product fee of 2.50% and early repayment charges.