Buy to let and residential clients enjoy incentives from key lenders

A selection of new criteria and incentives, from cashback on residential remortgages to record low buy to let rates, have been launched by a range of high street and intermediary-only lenders.

With the aim of loosening its family mortgage criteria, Barclays will now accept a 10% deposit from parents or family members looking to support their children get a foot on the property ladder.

The product in question is the Family Springboard mortgage, and prior to this latest announcement a 5% deposit from a family member was required in conjunction with an additional 5% deposit from the child purchasing the home.

In addition to this change in criteria, Barclays has also raised the maximum income multiple on the Family Springboard mortgage, to five and a half times the borrower’s income. The product is available on a three-year fixed rate.

The move follows recent research carried out by Barclays into first-time buyer trends. The research found that 35% of first-time buyers ask their parents for financial support when trying to secure their first mortgage.

Separate research from Legal & General predicts that in 2016 the ‘Bank of Mum and Dad’ will lend over £5bn, provide deposits for over 300,000 mortgages and help purchase £77bn worth of property.

Looking to entice new customers who are in the process of remortgaging their homes, Halifax is offering £750 cashback to homeowners who switch to the bank from another lender.

Once the sale completes, the cashback will be paid automatically via the conveyancer. Halifax will also pay standard valuation costs and basic legal fees.

Buy to let customers will also benefit from a series of new incentives launched this week.

The Co-operative Bank’s intermediary arm, Platform Home Loans, has extended the maximum loan cap it will apply to all loan-to-value (LTV) brackets.

Platform’s new criteria will see the maximum amount for 70% LTV mortgages increased to £1.5bn. For loans up to 75% the maximum amount is now £1bn and for 85% LTV and 90% LTV loans the maximum amount is £750,000 and £500,000 respectively.

Having taken on board feedback from intermediaries, the lender has also cut rates on its residential and buy to let products. Its new residential range includes fee and fee-free mortgage options, as well as a brand new two-year 85% LTV mortgage at 2.29%.

The lender’s buy to let range includes a five-year fixed rate at 3.04%(4.9% APR) and a two-year tracker at 1.89%(4.8% APR), both on 60% LTV mortgages (a £1,999 arrangement fee applies).

Landlords hoping to invest in lower value properties will be interested to hear that Accord Buy to Let has reduced the minimum property value on its buy to let mortgages.

The intermediary-only lender has reduced its minimum property value from £100,000 down to £75,000, in a move to appeal to buyers in the North and Midlands, where average property prices are lower in comparison to the rest of the UK.

Accord will also now offer buy to let mortgages on ex-local authority properties.

Meanwhile, Foundation Home Loans (FHL) is offering is lowest ever buy to let mortgage deal: a 3.49%(5.2% APR) two-year fixed rate deal for both individuals and limited companies.