Landlord lenders widen buy to let mortgage options and criteria

Landlords have been offered more buy to let borrowing options after four specialist lenders announced changes to their mortgage ranges and lending criteria.

Fleet Mortgages has broadened its criteria for joint applications involving foreign nationals, while YBS Commercial Mortgages has launched a tracker mortgage for larger multi-unit freehold blocks.

Hampshire Trust Bank has introduced lower semi-commercial rates and a new 65% loan-to-value range, while Shawbrook has cut selected commercial mortgage rates by as much as 0.50%.

Joint BTL applications

Fleet will now consider joint buy to let applications where at least one borrower holds a British passport, Indefinite Leave to Remain or settled status.

Additional applicants may be accepted with eligible visas if they have lived in the UK for at least three years and have at least 12 months remaining on their visa.

The lender has also expanded its limited company criteria to accept group structures registered throughout the UK, including Scotland and Northern Ireland.

Previously, companies had to be registered in England and Wales.

Fleet said it would lend to UK-incorporated special purpose vehicles, although the mortgaged property must remain in England or Wales and the loan will be governed by English law.

YBS Commercial unveils tracker

Meanwhile, YBS Commercial Mortgages has introduced a three-year tracker product for multi-unit freehold blocks containing seven or more units.

The mortgage has a variable rate of 4.99%, calculated at 1.24% above the Bank of England base rate of 3.75%.

It is available on capital-and-interest or interest-only terms at up to 75% LTV, with a 2% arrangement fee.

A multi-unit freehold block is a building containing at least two separate residential or commercial units under a single freehold title.

Angela Norman, the managing director of YBS Commercial, said: “By introducing this tracker product we’re providing landlords with more choice, and the ability to better respond to changing market conditions, as well as strengthening our competitive position in this space, reinforcing our commitment to delivering solutions that meet their evolving needs.”

HTB boosts semi-commercial loans

Hampshire Trust Bank has also revised its semi-commercial mortgage range, introducing a pricing band for loans between £250,000 and £1 million with rates starting at 6.64%.

A new 65% LTV range has been launched with rates from 6.24%. The options are available immediately for mixed-use and other semi-commercial investment transactions.

Alex Upton, the managing director of specialist mortgages at Hampshire Trust Bank, said: “Semi-commercial continues to be an important part of the conversations we’re having with brokers, and those conversations continue to evolve. We’re seeing a broad range of mixed-use cases coming through, and it’s important that our proposition adapts to support them.”

Shawbrook’s cuts BTL rates

Shawbrook has cut rates across selected two, three, five and 10-year fixed commercial and semi-commercial mortgages by up to 0.35%.

Rates on selected two, three and five-year commercial trading mortgages have been reduced by up to 0.50%, covering owner-occupiers and businesses purchasing or refinancing commercial premises.

Daryl Norkett, Shawbrook’s director of real estate proposition, said: “As activity across the commercial property market continues to strengthen, these latest rate reductions provide even greater value while reinforcing our commitment to making it easier for brokers to place business with Shawbrook.”

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