Competition from rental lenders intensifies – Dynamo


Competition in the purchase and lease market continues to intensify among lenders, resulting in relentless demand from homeowners for various purchase and re-mortgage purposes.

In the specialist rental purchasing sector, it was encouraging to see innovation and product diversity nonstop throughout September.

West One Loans has launched an environmental initiative to fund projects with sustainability and carbon reduction measures in mind. As part of its “Finance the Future” campaign, West One has developed a series of products across its range, launching with the publication of a green buy-lease agreement.

Penrith Building Society has launched an expatriate vacation rental product and a multi-unit mortgage. The expatriate vacation rental is available to non-owner occupants, first-time buyers and / or first-time owners. It offers a maximum loan-to-value ratio (LTV) of 70 percent over a three-year period at 4.25 percent. Applications are assessed on an average of low, medium and high season rental yields. There is an application fee of £ 249, a product fee of £ 1,350 and a variable evaluation fee.

Buckinghamshire Building Society has unveiled a series of new mortgage products. Home from Home is the first new addition to the company’s mortgage portfolio – a proposition that gives people the ability to own a second vacation home and rent it out for up to 90 days each year as a vacation rental.

Shawbrook Bank is hosting a new buy-to-let product, available exclusively through its recently launched digital portal, MyShawbrook Buy-to-Let. The lender has also cut rates by up to 0.60% across its range of rental purchases on mortgages of up to £ 1million. The non-portfolio product is designed to complement the new system and support cases that will benefit the most from its automation features.

By focusing our attention on changes to standard products, Precise Mortgages has reduced rates and fees within its rental product line across the entire Personal Property, Multi-Occupancy Home (HMO) product line. and limited liability companies. The lender has also introduced products with appraisal repayment and £ 500 cash back to help support the remortgage market.

CHL Mortgages has lowered rates on its entire range of products for individuals and public limited companies. Rates now start from 2.88 percent on the lender’s two-year fixed-rate rental product range up to 65 percent LTV and 3.05 percent to 75 percent LTV.

Accord Mortgages has reduced rates on certain mortgage products to 0.12% to 60% LTV and 0.08% to 65% LTV. Notable reductions include a two-year fixed rate mortgage at 1.31% (vs. 1.43%) for homeowners with 40% equity, which comes with a £ 1,495 completion fee, free standard assessment and £ 300 cash back or free remortgage legal services. .

Specialty lender Hampshire Trust Bank has made a series of updates to its rental product line for loans of up to £ 5million. The changes provide for two-year fixed rates to start at 3.84% up to 65% LTV, 3.99% up to 70% LTV and 4.09% up to 75% LTV. Its five-year fixed rates start at 3.99% up to 65% LTV, 4.14% up to 70% LTV and 4.19% up to 75% LTV.

Paragon Bank has launched two limited edition products for single stand-alone units, HMOs and multi-unit blocks (MUBs). Offered on two- and five-year fixed rate terms, with rates starting at 2.65% and 2.99% respectively, the products include free mortgage assessments and £ 750 cash back. Both mortgages are offered at 75% LTV and are available to experienced homeowners who purchase and remortgage rental properties as individuals or through limited liability companies.

Finally, Foundation Home Loans introduced fixed-price limited editions for individual owner-borrowers and limited companies. The new rental limited editions are available for both purchase and remortgage purposes and offered to individual owners and limited companies. The 75 percent two-year LTV fixed rate is available at 2.94 percent, while the five-year option is available at 3.14 percent. Each product comes with a lump sum of £ 1,995 and there is no minimum loan amount.

After reading this, it’s easier than ever to see why Christmas is just around the corner.

Cat Armstrong, Mortgage Club Director, Dynamo for Intermediaries

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