Residential and buy to let lenders bring new deals to the market

Metro Bank, Foundation Home Loans, Skipton Building Society, Accord Mortgages and Newcastle Intermediaries are among the latest lenders to review and update their product offerings, in an ever competitive residential and buy to let mortgage market.

Buy to let

Metro Bank is setting its sights on the consumer buy to let mortgage market, as it confirms it is soon to enter the sector following 'significant demand' from borrowers.

Metro Bank aims to provide support to landlords where there is at least one applicant who doesn't own a buy to let property, or where either they or a relative has been living in the property since it was purchased.

The move follows Metro Bank's decision to lower residential and professional buy to let mortgage rates earlier in the year.

Foundation Home Loans has also reduced the interest rates on its two, three and five-year fixed buy to let range of mortgages, by as much as 30bps in some cases.

Available to both individual landlords and specialist companies, headline deals include:

  • Two-year fixed rate, 65% loan to value (LTV) mortgage at 2.99%
  • Two-year fixed rate, 75% LTV mortgage at 3.19%
  • Three-year fixed rate, 65% LTV mortgage at 3.19%
  • Three-year fixed rate, 75% LTV mortgage at 3.39%
  • Five-year fixed rate, 65% LTV mortgage at 3.29%
  • Five-year fixed rate, 75% LTV mortgage at 3.59%

As with all Foundation Home Loans' products, these new deals will be available through intermediaries, with its standard range tailored to clients with cleaner credit records and the specialist range available to borrowers with more complex lending history.

Residential

In residential mortgage news, Skipton Building Society has revised its interest-only mortgage range, offering new solutions to borrowers who have £400,000 equity in their property or minimum pension pots of the same value.

The revision will mean that these borrowers will be able to use the sale of their home as an exit strategy, on condition that there is £400,000 of equity left after a mortgage has been secured on the property.

Sale of the property will only be allowed to cover the mortgage up to 50% LTV. However, the lender will allow borrowers to use a combination of vehicles if the mortgage exceeds that limit, up to a maximum of 70% LTV. Furthermore, the LTV can be extended to 80% if the mortgage capital is part repayment and part interest only.

Skipton will also accept up to 15% of a borrower's projected pension savings as a repayment vehicle, so long as the minimum projected value of the pot is £400,000.

In parallel, the lender has added new interest-only mortgage deals to its 60%, 70% and 80% LTV options, for purchase and remortgage.

Highlights include a fee-free two-year fixed rate 60% LTV mortgage at 1.66% for purchase and an interest-only remortgage deal at a rate of 1.79% for a 60% LTV two-year fixed product, which offers free valuations, standards legals and no fee.

Skipton also offers an enhance policy for interest-only residential lending, called Skipton Bespoke, available to borrowers who are looking for loans over £1m.

Accord Mortgages, meanwhile has cut rates by up to 0.15% on 50 of its residential mortgages.

The lender's homebuyer deals now include a rate of 1.82% for a two-year fixed mortgage at 75% LTV. The product is fee-free and comes with a standard valuation and £500 cashback.

Accord's five-year fixed rate of 2.24% is available to homebuyers and remortgage customers, up to 85% LTV and comes with a £995 product fee. The lender is also offering free standard valuations on all of its fixed rate mortgages with a £1,995 fee.

First-time buyers looking to get onto the property ladder in the North East of England will be interested to learn that Newcastle Intermediaries has launched a new range of products tailored to fledgling buyers in the region.

Included in the new range are a two-year fixed rate mortgage at 3.71%, as well as a five-year fixed rate product at 4.11% up to 95% LTV. The deals do not carry product reservation or completion fees and offer free standard valuation on properties up to a value of £500,000 and £200 cashback to borrowers.

Lastly Virgin Money covers both residential and buy to let borrowers with its new product updates. Included in its residential updates are a 1.28% two-year fixed rate at 65% LTV, as well as a 1.52% two-year fixed rate at 85% LTV.

As for the lender's buy to let updates, these include a 2.94% five-year fix at 70% LTV and a 2.99% five-year fix at 75% LTV. All loans carry a £995 product fee.

Virgin Money has also introduced an intermediary exclusive residential loan. Brokers will now be able to offer remortgagors a 1.19% fixed rate at 50% LTV, with a £1,995 product fee and minimum loan size of £300,000.

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