Buy to let lender tightens up mortgage termsMake Text Bigger
Platform Mortgages – the buy-to-let arm of the Co-op Bank – is tightening up lending with a change of terms and conditions from Monday (December 13).
Interest only loans are capped at 75% loan-to-value with a maximum lending threshold of £500,000.
Younger borrowers are cut out of the market with a hike in the minimum age for loans from 18 to 25-years-old.
At the same time, borrowers will have to prove they earn a minimum £20,000 a year – up 33% from the current required annual income of £15,000.
A Platform spokesman said: “Platform is committed to supporting brokers in the buy to let market as it is with the mainstream market.
“We have a wealth of experience and expertise in buy to let lending and we’re very clear about the area of the market that we want to focus on. This is reflected in our criteria.”
Platform’s focus further up the market comes after a recent remodelling of buy to let mortgages by The Mortgage Works – Nationwide’s buy to let lending subsidiary.
Best buy deals that are broker only offers
The lender sliced up to 0.35% across buy to let deals, tweaked loan-to-values and maximum loan sizes.
First-time landlords can opt for new deals and some loans have no arrangement fee.
Platform and The Mortgage Works offer about 50% of the current best buy deals for landlord mortgages.
Meanwhile old favourite buy to let lenders Bradford & Bingley and Northern Rock are still suffering the knock-on of high-risk lending at the height of the property market.
Both have been marked down by investment risk assessor Moody’s on the back of reports that they are expect to double their expected losses in 2010.
The credit ratings apply to mortgage securitisation trusts – Bradford and Bingley’s Aire Valley trust expects to see losses double from 1.75% to 3.5%.
Northern Rock’s trust Granite will see losses rise from 1.75% to 2.5%.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.