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TSB, Pepper Money and Foundation Home Loans make changes to their BTL Criteria

TSB introduces ten-year fixes and shared ownership deals, Pepper cuts residential rates by up to 1%, and Foundation changes BTL criteria ahead of new energy efficiency regs

TSB has doubled its cashback on 85%-95% loan to value (LTV) deals from £250 to £500, as well as making rate changes and introducing a new ten-year fixed range.

The lender is also launching shared ownership and shared equity products for remortgage and purchase, including a shared ownership home mover two-year fixed from 1.69% at 0-95% LTV, with fee and fee-free options.

Pricing on home mover and remortgage ranges have seen rates changed by up to 0.25%, with some rates hiked by 0.20% and others dropped by 0.15%.

TSB has also introduced a number of new products, including five-year fixes starting at 2.04% at up to 90% LTV, and ten-year fixes starting at 2.54% for 60% LTV.

Pepper Money has also been adjusting its offer, with new limited edition pricing across its residential mortgage range. Some rates have been reduced by up to 1%.
Limited edition rates are available on Pepper 6, Pepper 12 and Pepper 18 products for residential borrowers who have not registered a CCJ or default in the last 6, 12 or 18 months.

A two-year fixed rate on Pepper 6 up to 75% LTV is now available for 3.78%.

The lowest rate in the limited edition range is a two-year fixed Rate on Pepper 18 up to 70% LTV, which is available for 3.08%.

Rob Barnard, sales director at Pepper Money, commented:

“At Pepper, we believe in simple, cost-effective solutions for customers who do not fit the mould of a high street lender. We don’t use a credit score to make our lending decisions or dictate our pricing. Instead, we offer an attractive solution to borrowers who have experienced a credit blip or life event.”

Elsewhere, Foundation Home Loans has made changes to its buy to let criteria ahead of new energy efficiency regulations which came into force on 1st April.

From this date landlords will have to have an Energy Performance Certificate (EPC) rating of E or higher before granting a new tenancy, or renewing an existing one.

Properties registered with Foundation Home Loans are now required to meet this minimum standard. Those properties with an F or G rating require improvement to be made and a new EPC rating supplied within an agreed time frame.

Foundation Home Loans has announced that if the EPC rating has not been checked or cannot be confirmed by the valuer, the responsibility will be passed to the solicitor who will be required to carry out the relevant checks and provide written confirmation that the necessary work has been undertaken.

The process applies both to purchase and remortgage applications.

Brokers have complained that lenders have been slow to address this issue and update brokers about their policies.

Mortgages for Business sales director Steve Olejnik said:

“Some lenders are pointing out that solicitors will be responsible for checking these certificates have the required EPC rating.

“However, brokers will need to raise these issues at the start of the process. Otherwise they run the risk of the application being turned down at a later stage.”