Fleet Mortgages has launched a new range of buy to let mortgages, while buy to let lenders, Coventry for Intermediaries and TSB have upped their Interest Coverage Ratio (ICR) criteria.
In addition to announcing a new collaboration with Mortgage Intelligence, buy to let and specialist lender, Fleet Mortgages has launched a new range of products.
- An individual two-year fixed mortgage at 70% loan to value (LTV) at a rate of 3.09%(5.1% APR), with a 1% fee.
- A limited company two-year fixed mortgage at 65% LTV at a rate of 3.99%(5.5% APR), with a 1.5% fee.
- A limited company lifetime tracker mortgage at 70% LTV at a rate of 4.5%(4.8% APR) and rental calculation 125% at 5%, with a 1.5% fee.
- An HMO two-year fixed mortgage at 65% LTV at a rate of 4.09%(5.7% APR), with a 2% fee.
In preparation for the forthcoming changes to landlord tax relief, Coventry for Intermediaries and TSB have revised their ICR criteria.
The rental calculation Coventry for Intermediaries uses when assessing new applications has now been increased from 125% to 140% of the monthly mortgage interest payment and will be calculated using the reference rate or product rate – whichever is higher.
The lender’s reference rate will remain unchanged.
Following the trend, TSB has also upped its buy to let mortgage ICR from 125% to 145%. As such, its buy to let rental calculation has been revised as follows:
- Up to 65% LTV: 145% of 5% or pay rate, whichever is higher
- From 65.01% to 75% LTV: 145% of 5.5% or pay rate, whichever is higher.
This revision will also apply when TSB is reviewing affordability for residential mortgages, where a customer already has buy to let mortgage investments.
The lender stipulates that the rental income should cover 145% of the buy to let mortgage at the customers’ pay rate. Any shortfall will be included in the lender’s affordability assessment.
18th July 2016