Here, we highlight just some of the changes we have witnessed over the past couple of
weeks.
On 3 rd July, TSB introduced a 5 year fixed rate residential mortgage product with no early
repayment charges within the fixed rate period. Godiva Mortgages already offers this attractive type of mortgage product for buy-to-let mortgages under what they call their
“flexx” range. This gives flexibility for landlords who can still obtain the certainty over
knowing what their monthly mortgage payments will be whilst not having to incur any
repayment charge should they wish to leave their mortgage deal to a new lender or sell
their property.
Kent Reliance, the specialist lender are still only accepting HMO applications for a maximum
of up to 6 bedrooms. Pre-covid they accepted 8 bedrooms but at the moment this is still
temporarily suspended.
Nottingham for Intermediaries have at the end of June launched a new buy-to-let product
range for Limited Company SPVs up to a maximum loan-to-value of 75%.
Meanwhile Ipswich Building Society as of 6th July are suspending all their lending to the buy-to-let property market with immediate effect including Expat buy-to-let and holiday-let
mortgages.
We are seeing lenders withdrawing again on higher loan-to-value products for residential
mortgages. Accord Mortgages have taken off their 90% LTV products after bringing them
back recently on 17 th June. The minimum deposit is now 15% for first time buyers with
Accord.
The Director, Jeremy Duncombe said that the move was motivated by believing more
lenders would have re-introduced their high LTV products but that belief evidently was not
following through. There is a general consensus from lenders that low deposits of as much
as 5% and 10% of the purchase price for residential mortgages is unlikely to return until
towards the end of the year.
The choice for 80% loan-to-value borrowing for buy-to-let lending remains to be minimal
with only a handful of lenders offering. The mainstream lenders left include Virgin Money,
Leeds Building Society, Accord and Clydesdale. Rates starting from 2.89% as a 2 year fixed
rate with Accord.
It is important to bear in mind that the mortgage market is constantly changing on a daily
basis. What might stand true yesterday may not hold today. It is advised that you contact a
mortgage broker to ascertain the most up-to-date lending criteria and product rates
available to you.
Sources:
Knowledge Bank intermediary market update emails
https://www.mortgagesolutions.co.uk/news/2020/07/06/accord-halts-90-per-cent-ltv-as-
lenders-say-expect-patchy-provision-for-months/