Fleet Mortgages, Nationwide and Virgin Money have all made changes to their mortgage ranges, cutting rates and revising lending policies for buy to let and residential customers.
Intermediary-only lender, Fleet Mortgages has overhauled its buy to let mortgage offering. For individuals, the lender has introduced two pay rate lifetime tracker deals, with rates at 3.99%(4.2% APR) up to 75% loan-to-value (LTV). A rental calculation of 125% at 3.99% applies.
For limited companies, Fleet is advertising a rate of 4.19% (4.5% APR) up to 75% LTV, with a rental calculation of 125% at 4.19%.
The lender has also reduced the rates on its limited company, Houses in Multiple Occupation (HMO) and multi-unit block products.
A two-year fixed rate limited company mortgage at 75% LTV has been cut from 4.19% to 3.6%(5.2% APR) and its five-year fixed rate limited company mortgage has been cut from 4.69% to 3.99%(5% APR).
As for the rates on its HMO and multi-unit products, a two-year fixed 65% LTV product is now 3.79%(5.5% APR), reduced from 4.09% and its five-year fixed rate 75% LTV has been cut to 4.29%(5.4% APR) from 4.99%.
Nationwide, meanwhile, has decided to increase the maximum LTV for customers remortgaging on a like-for-like basis from 85% to 90% LTV.
Starting at a rate of 2.39%(3.6% APRC), Nationwide’s two-year 90% LTV remortgage products carry a £999 fee. The rate on the no-fee option of the same deal is 2.79%(3.7% APRC).
For a three-year product, rates start at 2.74%(3.6% APRC), while five-year deals start at 3.19% with a £999 fee or 3.39%(3.6% APRC) with no fee.
Nationwide is also offering residential remortgagors a free standard valuation and the choice between free standard legal work and £250 cashback.
Aiming to improve its offering to residential and buy-to-let customers, Virgin Money has up-dated its lending policies.
When lending into retirement, residential borrowers will benefit from Virgin Money’s amended policy allowing more applicants to use their current income for affordability.
In a statement to brokers, the lender explained that if a customer is to retire in 10 or more years, affordability will now be based on their current incomes, so long as the customer is able to show that they are making provisions for a pension.
For customers who are either 10 years away from retirement or the age of 67 (whichever comes first), Virgin will now base affordability on the lower current income or expected pension income.
The lender has not revised its maximum age policy, and the age limit for end of term remains at 75 years and 364 days.
Applying to buy to let and residential customers, Virgin has increased the number of storeys it will allow for flats and maisonettes to 10. This will apply across the UK, with a more relaxed policy being applied to certain areas of London, where the lender may accept an unlimited number of storeys.
However, if a building has more than 10 storeys, the maximum LTV will be restricted to 80% for all properties within the building.
Changes to Virgin’s leasehold policy mean that the lender now requires a minimum unexpired term of at least 70 years at the point of application.
The new policy is applicable to all Decisions in Principle (DIP). DIPs already approved on Virgin’s existing policy will be honoured if converted to a full application within a 90 day validity period.
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2nd November 2016