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Variety of lenders cut rates and improve product criteria

A range of buy to let and residential lenders have refreshed their product offerings; cutting rates, launching new mortgage deals and improving product criteria.

Yesterday, Paragon Mortgages launched six new buy to let products and announced that it was overhauling its product range.

The new range includes a two-year fixed rate, 65% loan to value (LTV) mortgage starting at 3.40%(5.4%APR) for single self-contained units, as well as a two-year 65% LTV fix at 3.75%(5.4%APR) for HMOs and multi-unit blocks. Both products carry a 1.50% arrangement fee.

The lender is also bringing in three new five-year fixes. Rates start at 4.20%(5.3%APR) with a 1.50% arrangement fee at 65% LTV for single self-contained properties – for both individual and limited company landlords.

Allowing landlords extra flexibility, Paragon has also redated the rates on its stepped rate products launched in March and advises landlords to speak to their brokers to check whether they would be suited to their circumstances.

Looking to capitalise on the self-employed niche market, Pepper Homeloans has enhanced its self-employed criteria by reducing the minimum trading period to one year.

The lender has also refreshed its existing product criteria for its range of residential and buy to let mortgages, following feedback from intermediaries.

The minimum term for all mortgage applications has been reduced to five years, and remortgages will be considered for applicants who have been registered owners for six months.

For buy to let mortgages, the maximum age for applicants has been increased to 85 at the end of the term, and rental income will now be taken into account as long as it is not the sole or primary income of the borrower.

Kent Reliance, meanwhile, has launched its product transfer scheme. The scheme covers all the lender’s products and allows existing Kent Reliance customers to use a broker to act on their behalf in facilitating a mortgage product transfer.

The lender says that the simple transfer process will not usually require a revaluation of the property or the need for a solicitor, so there should be no additional borrower costs.

Moving on the the residential market, NatWest Intermediary Solutions has cuts rates on many of its five-year residential fixed-rate deals by up to 28 basis points.

The rate cuts have been reported as follows:

Residential – purchase
60% LTV decreasing by 28bps to 2.25% (APRC 3.5%)
70% LTV falling by 20bps to 2.53% (APRC 3.6%)
75% LTV decreasing by 25bps to 2.63% (APRC 3.8%)
80% LTV decreasing by 24bps to 2.74% (APRC 3.7%)
85% LTV being cut by 28bps to 3% (APRC 3.8%)

The products above each have an arrangement fee of £995.

However, the lender is also raising the rates on some of its other products.

NatWest’s first time buyer residential mortgage at 90% LTV will rise by 5bps to 3.65%, with an APRC of 3.9%.

Its two-year fixed rate mortgage at 95% LTV and 3.79% will increase to 3.99%, with 4.1% APRC and 4% SVR.

Meanwhile, the lender’s five-year fixed 95% LTV mortgage at 4.61% will rise to 4.69%. The product will continue to have 4.4% APRC and 4% SVR.

None of these products carry a fee.

NatWest’s residential house purchase and remortgage two-year products will also see rate rises.

Its 90% LTV two-year product at 2.5% will increase by 10bps to 2.6%. The product will keep its APRC of 3.9% for purchase and remortgage, as well as its 4% SVR and £995 product fee.

Finally, with the aim of tackling affordability issues, Skipton Building Society and Skipton Intermediaries have axed their £500,000 maximum loan cap for first-time buyers.

The lender says that the move is designed to support the London and South of England housing markets, where first time buyers with good jobs and large deposits still struggle to meet lenders’ affordability criteria.


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