Fleet Mortgages, the buy-to-let specialist lender, has today announced a raft of changes to its lending and product criteria following feedback from its intermediary partners.
The changes are introduced with immediate effect and cover a range of criteria from loan sizes to valuations, transactions between connected parties to gifted deposits.
Specific highlights of the lender’s enhanced criteria include:
- Loan sizes – Fleet has increased its maximum loan size to £2m for a single loan at 75% LTV and £1m for a single loan at 80% LTV. This excludes HMO, MUB and flats above commercial properties.
- Valuations – Fleet has reduced its minimum property valuation to £50k (subject to max 70% LTV, up to £74,999), from a previous minimum of £75k.
- Portfolio lending aggregate exposure – Fleet will now lend up to a maximum of £5m per obligor; £2m at 80% LTV and over £2m at 75% LTV.
- Freeholder/leaseholder being connected – Fleet will now consider properties where there is a connection between the freeholder and the leaseholder – a situation which is common amongst landlords.
- Transactions between connected parties – Fleet will now consider applications where there is a connection between the buyer and the seller – for example, a trading company selling to an SPV or a parent/grandparent selling to a child/grandchild.
- Gifted deposits – Fleet will now accept gifted deposits on connected party transactions for immediate family members (Mother, Father, Grandparents or Siblings).
- Properties impacted by commercial – Fleet will consider properties above or adjacent to commercial premises providing its valuer confirms the property forms a suitable security.
The introduction of the new criteria follows the recent announcement by Fleet Mortgages of its new funding partnership with asset manager, One William Street (OWS) Capital Management.
Steve Cox, Distribution Director of Fleet Mortgages, commented: “It’s vitally important that we listen to our adviser partners when it comes to our lending and product criteria, especially at a time when the nature of the buy-to-let market is shifting and we’re seeing far greater activity levels, particularly in the portfolio/professional landlord space.
“Today, we’ve introduced a number of criteria enhancements that reflect this, specifically upping our maximum loan sizes and the portfolio lending aggregate exposure for each obligor. At the same time, we also recognise that some landlords want to add lower-value properties to their portfolios and have therefore dropped our minimum property valuation.
“Overall, these enhancements should ensure advisers have a further layer of flexibility to offer their buy-to-let clients and send the message that Fleet Mortgages can accommodate many different types of property, situation, and landlord financial needs. If you’re looking for further information on what we can offer your clients, then please contact your local or telephone BDM to see how we can help you.”