The Mortgage Works is ratcheting up loan to values for buy to let mortgage borrowers.
All 60% loan to value deals will now be offered at 65% loan to value, while other mortgages are available at 75% and 80% loan to value.
A new lifetime variable rate loan at 65% loan to value with a £995 fee was launched alongside the news.
“Structuring our products by loan to value is designed to create consistency and reflects our risk-based approach to lending. Implementing a lower follow-on rate relative to the stress rate provides an extra safeguard for landlords to protect rental cover in the event of future base rate rises,” said a spokesman.
Coventry cuts booking fee
Coventry Building Society is cutting a £250 booking fee on buy to let mortgage applications from brokers.
Kevin Purvey, Coventry’s head of intermediaries, said: “We have decided to extend this to all buy to let investors, not just direct customers.”
The lender’s buy to let mortgages also come with a free valuation worth up to £700.
Fleet’s new mortgage range
Fleet Mortgages has released details of new loans for buy to let and house in multiple occupation (HMO) investors that should be launched before Christmas.
- A two-year buy-to-let fix at 65% loan to value at 2.79% with a 3.29% rate at 75% loan to value and 4.79% at 80% loan to value
- A five-year buy to let fix at 4.29% at 75% loan to value
- Buy-to-let trackers for three years at 65% loan to value at 2.85%; 75% loan to value at 3.35% and 80% loan to value at 4.75%. Tracker rates are LIBOR based.
- A two-year fix for company-owned buy-to-let at 4.39% up to 65% loan to value, 4.59% up to 70% loan to value and 5.29% up to 80% loan to value
- A two-year HMO fixed rate at 5.29% up to 65% loan to value and 5.39% up to 75% loan to value.
Completion fees range from 1% to 2%, depending on the type of investment property.