Brendan Crowshaw, Mortgage and Savings Distribution Manager at the Vernon Building Society, says: Support this sector.
“Our new 90% mortgage has a low interest rate of 2.35% and borrowers can apply for the mortgage over the phone, in branch or through a mortgage broker.”
The new 90% loan-to-value product is available for mortgages between £ 150,000 and £ 350,000, either directly or through mortgage brokers.
The discounted rate is a reduction of 2.85% on the company’s standard variable rate of 5.2% with a floor of 2.35%. Prepayment charges apply for the two-year discount period.
High Rise Trading Company and BTL Now Available at Landbay
Specialty lender Landbay has launched a line of rental products for commercial limited companies that buy or remortgage standard properties, multiple occupancy homes (HMOs) and multi-unit freehold blocks (MUFBs).
Most rental limited companies (BTLs) are incorporated as a “special purpose vehicle” and must apply for a Standard Industrial Classification of Economic Activities (SIC) code that indicates that they specialize in real estate.
Meanwhile, commercial limited companies can be any small business such as doctors, dentists, or brokers who want to use their business to buy property for rent. However, few BTL lenders will lend to commercial limited companies.
Additionally, Landbay increased the loan-to-value (LTV) ratio on large HMO / MUFBs (up to 12 beds / units) to 75%, from 70%. There is also no limit on the number of floors of a property on which Landbay will lend.
Paul Brett, Managing Director of Intermediaries at Landbay, comments: “Being one of the few lenders dealing with public limited companies, brokers now have more options when it comes to advising business executives, who are not specialized in real estate. If small businesses have excess profits, buying property for rent can be a tax-efficient investment. “
“Our appetite for loans has been boosted by our new five-year £ 1bn funding source from our new friends and partners, Allica Bank. We are having a great year across the company and I think there are even more exciting times ahead. “
Shawbrook 48-Hour Mortgage Offer Ends Via New Technology Platform
Shawbrook Bank provided a formal mortgage offer to a client within 48 hours of submission, using its new Buy-to-Let platform before its official launch.
The platform aims to streamline the entire application process for brokers using the latest technology.
By applying advanced decision-making techniques and “sophisticated” information via API technology, Shawbrook says the new system will provide “a faster, more intuitive journey” for credit decisions and real estate appraisals, where appropriate.
While testing the new platform, a broker submitted a new case for review. All third-party checks were performed automatically as part of the Request-in-Principle (AIP) process, significantly reducing the requirements of the underwriting team.
An instant IMO was then generated, alongside a successful Automated Real Estate Valuation (AVM). The broker has provided the necessary documentation required for a formal offer. From submitting an AIP to issuing the offer, the process took 48 hours.
Emma Cox, Director of Sales at Shawbrook Property Finance, comments: “Over the past twelve months, we have invested heavily in the technology we rely on behind the scenes to help provide the best possible service to our clients.
“The launch with our strategic partners has already demonstrated the benefits these improvements will have. This is just the start of a series of digital enhancements we’ll be announcing in 2021 to improve the broker experience and ensure a more efficient app journey for our clients. “
Hope for Scotland as lender enters Scottish market
Hope Capital has announced the launch of its short-term funding proposal in Scotland.
After following the Scottish property market for some time, the specialist lender is expanding its offering to brokers and their clients who own property in Scotland.
This includes a range of bridging loans for residential, mixed-use and commercial properties.
Gary Bailey, Managing Director of Hope Capital, comments: “Despite the challenges of Covid-19, we have experienced a consistently high level of inquiries and now is the time to extend our loans to the underserved Scottish market. “
“We are monitoring the Scottish property market and it has remained dynamic over the past 12 months, so it is clear that there is a growing demand for bridge financing. It’s really great to see, especially after such a difficult year.
He adds: “We look forward to providing the same great service in Scotland and helping brokers deliver innovative, unique and flexible bridging finance solutions that will help their clients achieve their business and investment ambitions.
Ewan Macfarlane of Simple Commercial Finance Scotland, adds: “I am delighted to hear that Hope Capital has chosen to offer its unique and competitive bridge finance products in Scotland and I look forward to working with the Hope Capital team in the near future.
Dudley delivers Easter giveaway with new product line
Dudley Building Society has launched a new product line with lower fixed and discounted rates, increased loan-to-value (LTV) ratios and now offers 90% LTV up to £ 1million.
Some 18 new basic residential products were introduced this week, including two-year fixed rates from 3.69%, three-year fixed rates at 3.64% and five-year fixed rates also from 3.69%. 3.69%.
Two products with a discount of 1.30% from the current standard variable rates (4.99%) to 3.69% and a discount of 1.30% for the futures product also from 3.69% to 90% LTV.
Features include the acceptance of offered deposits and tiered fixed rate LTVs on two- and five-year fixed rates between 85% and 90% with a tiered level of 87.5%.
Dudley Commercial Director Sam Ward said the new product line reflects an exciting development for the company.
She comments: “It is fitting that as the days grow longer and with Easter on the horizon, the Dudley unveils a new range of fresh produce for our introducers and their customers. Whether buying or remortgage, there is something for everyone.
“We’re especially excited to introduce tiered LTVs, as we wanted borrowers who had managed to save slightly higher deposits to benefit from lower rates without having to find an additional 5%. “
Newbury Building Society cuts mortgage rates
The Newbury Building Society has cut rates on a standard residential mortgage product line to 60% and 75% loan-to-value ratio (LTV), as well as its shared ownership LTV line to 95%.
The mortgage products – including variable and fixed rates – have been reduced by up to 0.50%.
The Company has also eliminated its reservation fees for fixed rate shared ownership products. The Condominium’s fixed-rate products allow you to buy new houses and apartments with a down payment of 5% of the part purchased.
The reduced rates are as follows:
GoGreen advances a new 5-year discount at 1.49% – 60% LTV (instead of 1.69%)
Existing borrower discount over 5 years at 1.59% – LTV 60% (instead of 1.69%)
GoGreen advances a new 5-year discount at 1.49% – 75% LTV (vs. 1.79%)
Existing borrower discount over 5 years at 1.59% – 75% LTV (instead of 1.89%)
5 year discount at 1.69% – 75% LTV (was 2.09%)
3 year discount at 1.69% – 75% LTV (instead of 2.09%)
Custom made at 1.99% – 75% LTV (vs. 2.49%)
Existing 3-year borrower set at 2.14% – 75% LTV (vs. 2.49%)
3 years fixed at 2.24% – 75% LTV (vs. 2.69%)
5 years set at 2.49% – 75% LTV (vs. 2.89%)
Roger Knight, Director of Loans at Newbury Building Society, comments: “We want to offer products that give potential and existing borrowers the best possible chance to achieve their homeownership ambitions.
“We believe the decision to downsize a number of our products does just that, as we continue to listen to brokers and their clients to ensure we are delivering the financial products they need. ”