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|Fleet Mortgages announce first in series of criteria improvements|
|Thursday, 04 February 2016|
Fleet Mortgages, the buy-to-let and specialist lender, has today (4th February 2016) announced the first of a series of criteria changes it will be rolling out over the next few months.
The lender has begun this process with three new criteria changes across both its new build and recent conversions lending and those for borrowers seeking finance on houses of multiple occupation (HMO) properties.
In the new build space, Fleet Mortgages will now offer loans up to 70% LTV for purpose built properties, and up to 60% for converted properties. New builds are defined as properties constructed or converted within the last 12 months, or properties that have never been occupied.
In the HMO space, Fleet Mortgages will also accept properties that have more than one kitchen, where previously this was not acceptable. HMO loans are available up to 75% LTV and subject to a minimum valuation of £150k; multi-unit blocks are accepted with up to 10 self-contained units and HMOs must be licensed where required.
These criteria changes come off the back of a successful first year of lending in 2015 for Fleet Mortgages which saw over £1.2 billion pounds of business flowing through its system. The lender is currently working at a 12-month business volume run-rate of £500 million of lending and aims to increase this to £750 million in 2016.
Bob Young, Chief Executive Officer of Fleet Mortgages, commented: “We kicked off the new year with the introduction of a number of new products and now we begin a focus on amending and updating our criteria in order to react to the changing market and the needs of our intermediary partners and their clients. Upping the LTV levels for new-build and recent conversion properties, plus accepting more than one kitchen within a HMO property, are just the first in a series of criteria changes we will be making in the forthcoming weeks. The team at Fleet Mortgages wants to ensure that when it comes to the buy-to-let space we have pricing, products and criteria which meet the needs of our intermediary partners.
“It has been an incredibly busy start to the year with activity at high levels. We see the limited company buy-to-let market continuing to draw in demand and interest because of the tax relief and stamp duty changes, however we still believe that, even post-end of March, we will continue to see strong levels of business across the sector.
“Our aim as always is to be adaptable and willing to react quickly in a nimble manner. While our overwhelming focus remains on buy-to-let, this adaptability means we see opportunities and potential in other mortgage sectors, where a vigorous approach to underwriting and our operational efficiencies would translate easily across. This is why we are looking at the commercial sector, which would be a natural move, but also perhaps the owner-occupier market. It will be an exciting year for Fleet Mortgages and we would urge all stakeholders to make sure they receive our regular updates on both product and criteria.”
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