Buy to let lenders offer rate cuts and higher HMO terms

Foundation has cut selected buy to let rates by up to 0.10 percentage points, with its range starting at 4.99% at 75% loan to value (LTV).

The intermediary-only lender has also reduced its two- and five-year F2 holiday let fixed rates by 0.10 percentage points to 6.64% and 6.74% respectively, both at 75% LTV with a 2% fee.

Alongside those reductions, its revised holiday let criteria allow owners to stay in their properties for up to 60 days annually.

Grant Hendry, the lender’s director of sales, said: “These enhancements further demonstrate our commitment to make positive changes to our products as soon as the opportunity presents itself.

“We continue to stay close to the market to ensure our product range remains competitive and able to support the broad requirements of intermediaries, landlords, property investors and borrowers.”

Higher HMO borrowing

Meanwhile, Hampshire Trust Bank (HTB) has increased its maximum LTV on eligible houses in multiple occupation mortgages to 80%.

The higher limit is available to professional landlords who meet the bank’s lending criteria.

HTB says the change gives brokers greater flexibility when arranging finance for HMO applications.

Its managing director of specialist mortgages and bridging finance, Alex Upton, said: “Increasing maximum HMO lending to 80% LTV reflects the way experienced landlords are investing today, giving brokers greater flexibility to support clients who are thinking strategically about leverage, liquidity and future investment opportunities.”

Shared legal representation

GB Bank has introduced dual legal representation for eligible refinances on its simplified buy to let and bridging range, allowing the same approved firm to act for borrower and lender.

The arrangement covers standard property refinances where the total facility or group exposure does not exceed £2 million, including applications using title indemnity insurance.

Borrowers and ultimate beneficial owners must be UK-based, with foreign nationals who have UK residency rights also eligible.

Ward Hadaway, Lester Aldridge, Jury O’Shea and Harold Benjamin make up the approved panel, which the bank says will help reduce delays associated with separate representation.

Bridging finance cuts

Pivot has reduced rates across its bridging and development finance range by two percentage points, with pricing now starting at 6% a year above the Bank of England base rate.

Loans of £2 million to £15 million are available for terms of up to three years across England, Scotland and Wales.

Residential development funding reaches 70% of loan to gross development value and 90% of loan to cost, while the commercial development limits are 65% and 85% respectively.

Development exit and stabilisation finance is available at up to 70% LTV, with residential bridging capped at 75% and commercial bridging at 65%.

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