Barclays is now accepting buy to let applications from first-time buyers and non-owner occupiers whilst Coventry for Intermediaries reduces its buy to let mortgage rates
Barclays is now accepting buy to let applications from first-time buyers and non-owner occupiers. In a note to brokers, Barclays has said it will lend to first-time buyers providing the subject property will be let out to a tenant and that it will not be lived in by the borrower or a family member.
The bank says the change offers an "alternative way of helping first time buyers get onto the property ladder".
One type of borrower Barlcays expects to see interest from is young professionals renting in an area with higher than average house prices, who could purchase a property to rent out as an investment in a more affordable part of the UK, without having to relocate themselves. The change also gives non-owner occupiers, who might be looking to remortgage an existing investment property, access to Barclays' buy to let product range.
Barclays says there will be no adjustment to the existing application process but all existing pipeline applications will be impacted "to give customers the benefit of the new rules". A Barclays spokesperson said:
"Barclays is a responsible lender and we’re always looking at ways to innovate and open up access to home buying. First time buy-to-let will give someone who does not have a mortgage an opportunity to get onto the property ladder.”
Meanwhile Coventry for Intermediaries has cut rates on its two-year fixed buy to let range by 0.20 per cent, with prices now starting from 1.49 per cent. The range now includes rates from 1.49 per cent at 50 per cent LTV, a £1,999 fee and early repayment charges. It also has a product with a rate of 2.05 per cent at 75 per cent LTV, also with a £1,999 fee.
The lender’s director of intermediaries Kevin Purvey says:
“We’re very happy to reduce rates across our buy-to-let two-year fixed range from 50 to 75 per cent LTV.”
Early repayment charges of 2 per cent apply until 30 April 2019, then 1 per cent until 30 April 2020.
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.