FHL, Coventry and Pepper refresh mortgage offerings and criteria

Foundation Home Loans (FHL) brings new rate of 2.99% to the market for its five-year fixed buy to let loan, while Pepper Home Loans is cutting the rates on its fixed products by up to 0.70% and Coventry for Intermediaries unveils its new plans for portfolio landlord lending.

Foundation Home Loans’ new five-year fixed rate buy to let mortgage is part of a limited edition offer available to individuals and limited companies.  At a rate of 2.99%, the loan has a 2% arrangement fee and is available at 65% loan-to-value (LTV).

FHL is also offering a 3.39% option, which has a £995 flat fee and is also available at 65% LTV.

“These limited edition products are based on feedback from our intermediary partners, and designed to offer choice with the two five-year fixed rate alternatives,” said Foundation Home Loans marketing director Jeff Knight.

“With the rental calculation based on the pay rate, these products will be appealing to experienced landlords, including limited companies and those with large portfolios.”

Pepper Homeloans is another lender to cut its fixed rate mortgages.

Across residential and buy to let ranges, the lender has introduced cuts of up to 0.70%. Pepper has also launched new five-year fixed rates for its near prime loans and has reduced rates by up to 0.60% on all its two-year and 30-month fixed rate non-conforming products.

Rob Barnard, sales director at Pepper Homeloans, explained:

“The days when borrowers with an adverse credit record had to pay a hefty price premium on their mortgages are now long gone.

“This market and these low rates represent a great opportunity for brokers to boost business volumes during the second half of the year.”

Pepper Homeloans do not use credit scoring and manually underwrite every case.  The lender also allows brokers to submit a Decisions in Principle (DIP) and applications online.

Coventry for Intermediaries, meanwhile, has now published its plan outlining how it will underwrite portfolio landlord applications from September onwards.  The lender specifies the following:

  •          A downloadable form for portfolio applications will be introduced that will capture information, such as mortgage value, monthly repayments, monthly rental amounts and estimated                property value.
  •          A maximum LTV of 65% will apply across the whole portfolio.
  •          A minimum interest coverage ratio (ICR) of 125% will also apply across the whole portfolio (including properties mortgaged with other lenders).
  •          Coventry will use a reference rate of 5.5%.
  •          No single property will be allowed below an ICR of 100%

Coventry will also stipulate that portfolio landlords must have bought their first buy to let investment more than 24 months before the current application and that no more than three properties should have been bought within the last 12 months. 

Kevin Purvey director of intermediaries at Coventry for Intermediaries, said:

“While intermediaries are adjusting to our new approach to portfolio landlords, we will of course be here to help.  

“Brokers can visit our website for full details of the changes to lending policy and the application process, or call the intermediary support team.”

 

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