From today, the lender confirmed that there have been criteria changes made in the areas of minimum valuations, landlord experience and shared accommodation.
The main changes are a reduction in the minimum valuation on converted freehold properties outside London and the South East down to £100k from £150k. This had been £150k for all regions and it remains at this figure for London and the South East. A reduction in the number of years experience required by landlords for HMO properties down to two years, if the primary applicant has owned a HMO property for that period. Three years’ standard buy-to-let experience is required otherwise.
Fleet also said that shared accommodation will now be accepted on standard buy-to-let products and will be valued on a room-by-room basis. Fleet Mortgages will now allow locks on bedroom doors while downstairs rooms can be used as bedrooms as long as there is a communal room.
The new range, launched at the start of November, increased maximum LTVs up from 70% to 75% with new products including:
Two new pay rate lifetime tracker products. For individuals the rate is 4% (LIBOR plus 3.6%) up to 75% LTV, with a rental calculation of 125% at 4%; for limited companies the rate is 4.20% (LIBOR plus 3.8%) up to 75% LTV with a rental calculation of 125% at 4.20%.
All other limited company and individual products are now offered at a rental calculation of 125% at 5%.
Rate cuts for limited company products – a two-year fix at 75% LTV of 3.6% (previously 4.19%) and five-year fix at 3.99% (from 4.69%).
Rate cuts for HMO/multi-unit block products – two-year fix at 65% LTV down to 3.79% from 4.09%; two-year fix at 75% LTV at 3.99% from 4.29%; and a five-year fixed rate now at 4.29% (75% LTV), having previously been 4.99%.
The lifetime tracker products for both individual and limited companies are only available to strong credit-scoring customers.
Bob Young, Chief Executive Officer of Fleet Mortgages, commented: “As promised we continue to review and change our criteria following conversations with our intermediary partners and our own experience and view of the needs of today’s landlord client. These three main criteria changes reflect the cases we are seeing, and the types of landlords and properties that are seeking mortgage finance from us.
We are reflecting on the varied house price situation outside London and the South East by dropping our minimum valuation requirement there, whilst also opening up our HMO range to those with two years’ experience in this sector and acknowledging that shared accommodation, with the necessary caveats attached, is acceptable for our standard buy-to-let range.
We’ve always wanted to reflect what is happening in the market and, where possible, to be flexible and responsive to the changing needs of advisers and their landlord clients. Our recent product launch has been well received and we will continue to review this, and our criteria, to ensure it is fit for purpose and accessible to quality landlord borrowers looking for a specialist, experienced lender to work with.”
