There is also a new limited-edition product for small house in multiple occupation (HMO) and multi-unit freehold block (MUFB) properties, again with a five-year fixed rate, £750,000 maximum loan size. This product is now part of the Specialist W1 range and priced at 3.59% with a 2% fee.
The W1 Specialist HMO/MUFB range has also seen reduced pricing by up to 10 basis points. Rates start from 3.49% with a 1.5% fee. Short Term Let, Ex-Pat and W2 light adverse products remain unchanged and available for selection.
As part of the changes, some products are being withdrawn or replaced and are no longer available for new submissions. These include the current limited edition product range (3.34%, five-year fixed), the current Standard and Specialist range products and the PMS/Sesame Small HMO Exclusive product (£3.64% with 1.75% fee).
Andrew Ferguson, managing director of West One buy-to-let, says the changes offered an increased choice to brokers and their clients, while at the same time broadening West One’s proposition.
He goes on: “There is a healthy level of demand in the buy-to-let market at present and our offering is being really well received by brokers. Our enhanced range, aligned with our strong service ethos, should ensure we continue to grow our business and become a go-to provider for brokers with landlord clients who need specialists in this field.”
“We are still maintaining strong service levels during a busy period and expect our refreshed range to grab real attention during the next few weeks as we enter summer.”
Mint Property Finance launches competitive ‘Power Products’
Specialist finance lender Mint Property Finance has launched the first in a series of ‘Power Products’ to the mortgage market.
The new Standard Bridging Loan offers up to 85% LTV with rates starting from 0.4% per month.
This unique product provides borrowers with the opportunity to borrow up to 10% more than traditional bridging loans, which are largely capped by competing lenders at 75% LTV.
The Standard Bridge is available on loans ranging from £75,000 to £2,500,000, with rates from 0.4% pm and terms of up to 12 months.
In addition, the lender has scrapped its minimum term, with no valuation or personal guarantee required on loans of up to 65% LTV. The new product is available on properties secured in England and Wales.
Finally, foreign nationals are invited to enjoy up to 75% LTV, up to 15% more than that of the majority of competitors.
Speaking on the launch, founder and managing director of Mint Property Finance Andrew Lazare says: “Most lenders including ourselves have always looked at short-term finance as an asset lending play where little credit is given to the borrower for their track record or net worth.”
“Over the last few years whilst the sector has grown, the mindset of only lending against the security on offer hasn’t. We believe that borrowers with a proven track record and experience ought to be able to borrow more money from us without us having to seek additional security from them. Provided the exit strategy is sound we are able to now offer enhanced, market-leading loan to values.”
“Our new products are a long time in the making and we are, with this first launch, delighted to bring them to market.”
Newcastle Intermediaries reduces rates on 85% LTV products
Newcastle Intermediaries has slashed rates on three products in its 85% LTV range by up to 0.20%.
The reduction includes a 0.20% cut on a two-year fixed-rate, now available at 2.30% (3.8% APRC) which comes with product fees of £499.
A fee-free two-year fix is now available at 2.55% (3.8% APRC), representing a 0.10% reduction on its previous rate. An early repayment charge of 2% applies until December 31 2022 and 1% until December 31 2021 on both fixed-rate products.
Alternatively, a fee-free two-year discounted rate has been reduced by 0.05% to 2.30% (3.8% APRC) which has an early repayment charge of 1% until 31.12.2023.
All refreshed products come with a free standard valuation on properties up to £500,000 and allow 10% overpayments per year in addition to the £499 regular monthly overpayments permitted.
John Truswell, head of intermediary mortgages at Newcastle Building Society, says: “We’re always listening to broker feedback and know it’s important to keep the range fresh in a very competitive market. Customers will benefit from the reductions on offer as well as our manual underwriting approach and leading service levels.”
Pure Retirement offers 20% overpayments ERC-free
Pure Retirement has announced the launch of its new Heritage Freedom 20 product, offering customers the ability to repay up to 20% of their loan each year free of an early repayment charge (ERC).
The product also allows up to 12 repayments per year, enabling customers to set up a monthly payment and reduce the impact of interest roll-up.
It follows last year’s successful launch of Heritage 40, which allows up to 40% repayments.
The Heritage Freedom product range has been designed to give customers greater flexibility when it comes to making optional repayments. It’s suitable for those who want to make either high-value monthly payments, or a single large payment from an anticipated future lump sum, from the likes of a pension pot, inheritance or investments.
As with last year’s Freedom 40 product, Freedom 20 is available to applicants from age 55 with an upper age cap of 80 at application and offers applicants LTVs between 23.50% and 52.32% depending on the number of applicants, their ages, and the product type.
The new products will accept properties valued from £70,000 with no maximum value cap, with loan sizes up to £1 million (£800k for Heritage Max Plus) that can be taken as either lump sum or drawdown facility.
Head of products Brendan Gilligan says the launch underlines Pure’s commitment to finding innovative and flexible product solutions for customers who, more than ever, are seeking plans that not only meet their needs now but also in the future.
“Freedom 20 is designed to strike a balance for customers simultaneously looking for competitive interest rates and higher-than-usual ERC-free repayment opportunities."
“In an increasingly competitive market, we’re aware of the need to offer products with clear benefits to consumers, and we firmly believe our Heritage Freedom range highlights our understanding of consumer needs and dedication to meeting them.”
BuildLoan and Vernon BS launch new self-build products
Lender BuildLoan has created two new low-rate, low-fee products funded by Vernon Building Society.
Designed for self and custom build, renovations, conversions and home improvements, the discount rate products are exclusively available from BuildLoan for intermediaries to offer to their clients in England and Wales.
Providing up to 85% of the client’s land and build costs, these products offer guaranteed stage payments based on project costs, either in arrears or in advance.
Rates are from 3.99% and repayments can be interest-only throughout the duration of the build to further reduce costs.
Chris Martin, head of product development and underwriting at BuildLoan, comments: “We’ve worked closely with the team at Vernon to develop these new products, which provide excellent value, while also meeting the needs of increasing numbers of self and custom builders who want to use more modern and efficient building methods.”
“Funds are released based on actual build costs rather than relying on site value during the build and the advance option means that up to 85% of the cost of each stage of work can be made available up-front.”
He says: “These features mean clients will get the funds they are expecting during the build which reduces the risk of delays due to running out of funds.”
Brendan Crowshaw, head of mortgage & savings distribution at Vernon Building Society, adds: “At Vernon, we recognise the growing self and custom build market, and the sector is an integral part of our lending strategy. We have designed these products with BuildLoan to provide the features that we know are important to self-builders.”
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