BM Solutions and The Mortgage Works refresh product offerings

BM Solutions has reduced the rates on a selection of its buy to let mortgage products, while The Mortgage Works (TMW) increases its minimum leasehold term and refreshes its Houses in Multiple Occupation (HMOs) criteria.

BM Solutions has applied several rate reductions to a variety of its mortgage products, effective as from the 23 March.

The rates on the lender’s two-year products, which carry a 0.5% fee, have now been reduced by 0.2%.

This applies to its 0–75% loan to value (LTV) fixed and tracker products.

A rate reduction of 0.15% has also been applied to BM Solutions’ fee free buy to let two-year products. Again this applies to its 0-75% LTV fixed and tracker products.

The rates on its 0-75% LTV products which carry a fee of £1,495 have been reduced by 0.10% and the rates on its three-year products have been reduced by 0.20% on 0-60% LTVs and by 0.25% on 0-75% LTVs.

BM Solutions five-year, 0-75% LTV fixed rate buy to let mortgages will also see a rate reduction of 0.20%, and within the five-year range two new products have been introduced: a 60% LTV with no fee at 3.39%(4.5% APR) and a 75% LTV with no fee at 3.99%(4.7% APR).

Nationwide’s buy to let arm, TMW, has also made a series of changes to its lending criteria.

From Thursday, 24 March, TMW will extend the minimum lease term on leasehold properties from 55 years to 70 years.

Revisions will also apply to the lender’s HMO criteria: the maximum number of lettable rooms will decrease from nine to seven and the minimum property value will rise from £50k to £100k, but the minimum valuation for buy to let and let to buy applications will remain unchanged at £50k.

A spokeswoman for TMW said:

“TMW has implemented changes to lending on leasehold properties to address the issue of short leases and their effect on the saleability and hence value of the properties on which we lend. The evidence shows that the decrease in property value accelerates once the lease falls below 55 years, and the cost of extending the lease increases as the term erodes.

Extending the minimum lease term to 70 years will help to address this issue and brings us into line with the market as a whole.

“The changes to lending on HMOs, limiting the number of lettable rooms to seven and introducing a minimum property value of £100,000, is to minimise the risk of lending on non-residential properties and those of poorer quality.”