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Lenders update criteria and rates for residential and buy to let products

The Mortgage Works, the buy-to-let arm of Nationwide, is removing its age limit at application for experienced landlords looking for a lower loan-to-value mortgage.

Currently there is a maximum age at application of 70 for all LTVs and all landlord types for buy to let loans, but no maximum age at redemption.

However from 18 April, there will be no maximum age at application nor at redemption for experienced landlords looking to borrow up to 65% LTV for either purchase and remortgage. The same criteria will also apply to limited company mortgages, currently being piloted by TMW.

There is no change in policy for those borrowing more than 65% LTV, or for first time landlords.

TMW recently increased the maximum LTV for buy-to-let mortgages from 75% to 80% for first time and experienced landlords, as well as Let to Buy and the limited company mortgage pilot.

Paul Wootton, TMW’s director of specialist lending, said:

“The group of experienced landlords is both growing and growing older, and market options are more limited for retirees seeking to retain their buy to let properties in order to supplement their pension. By removing the maximum age when applying for a buy to let mortgage, TMW is supporting the increasing market demand in this area.”

Elsewhere, Barclays is increasing mortgage rates across its residential, buy-to-let and reward range products from tomorrow.

However Barclays is reducing its 10-year fixed rate product at 60% LTV by 10bps, with rates now available from 2.59% with a £999 fee.

Additionally, Barclays has confirmed the new interest rates for its first Green Home Mortgage product range. 

The mortgage offers a 10bps discount off traditional Barclays products for homebuyers who choose to buy an energy efficient new build home.

Two-year fixed rates will be available at 1.84% up to 90% LTV and from 1.50% for a Help to Buy product up to 75% LTV.

Five-year fixed rates start at 2.05% for a Help to Buy product and 2.34% for residential products up to 90% LTV.

Meanwhile, Accord has launched seven aggressively priced two-year discounted standard variable rate loans.

The lender claims the new products undercut existing average two-year fixed rates by up to 0.81%. The range is available from 12 April
LTVs from 60% to 95% are available. Rates offer discounts to Accord’s standard variable rate, currently 4.99%.

At 90% LTV a borrower can get a rate of 1.64%. This is 0.81% below the average two-year fixed rate at the same LTV, according to Moneyfacts. At 75% LTV a borrower can get a 1.29% rate from Accord.

The new loans have a £495 product fee and a free standard valuation. The exception is Accord’s 0.97% rate at 60% LTV, which has a £1,495 fee.

All the loans are available for house purchase and remortgage except a 2.99% option at 95% LTV which is for house purchases only.

Borrowers can redeem at any point in the discount period and incur a 1% early repayment charge.

Accord mortgage manager Ben Merritt commented:

“Whilst the rate on these types of mortgages can go up as well as down, with our highly competitive range customers could potentially withstand a number of rate increases before their rate rises above the market average, which could mean customers pay less even if rates do go above that of a fixed rate offering.”

Further rate cuts are being made at Platform, the intermediary arm of The Co-op Bank, which has dropped its rates on high-LTV mortgages by up to 0.10%. The cuts apply to some of the lender’s two- and five-year fixed rates at 85 and 90% LTV.

Platform is now selling a five-year fixed rate loan at 2.34% at 90% LTV with a £1,499 fee.

The lender is also offering a two-year fixed rate at 1.54% at 85% LTV with a £999 fee and a 1.94% option for the same loan with no fee.

All Platform’s five-year fixed rate buy to let mortgages have also been reduced by 0.05 percentage points.

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