Mortgage: New wave of loan to value products for homebuyers – what it means for deposits

Martin Lewis provides advice on mortgages in later life

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LTV is a percentage figure which reveals how much your mortgage borrowing is in relation to how much your property is worth.

It reflects the proportion of your property that is mortgaged, and the amount of your own equity.

TML

Recently, The Mortgage Lender (TML) announced the addition of new 80 percent LTV products, which results in its minimum loan value falling to £25,001 across most of its buy to let range.

Some 15 of these new products have been added to the lender’s wider buy to let (BTL) range.

Said products come to the market with a two-year fixed rate starting from 4.35 percent with a 1.5 percent fee, as well as a five-year fixed rate from 4.44 percent with a two percent fee.

All products by TML are available to parties looking to buy in the market, including individual, Limited Company and LLP applicants for mortgages and remortgages.

Steve Griffiths, TML’s Sales and Product Director, revealed that the new product is mainly responding to increasing consumer demand.

Mr Griffiths said: “This is one of a number of enhancements we’ve made to our buy to let range in recent weeks as we evolve to meet market demand and demonstrate our commitment to real life lending.

“We’ve made these changes with portfolio landlords very much in mind as smaller deposits enable them to grow more quickly by allowing them to distribute their funds across more properties.”

In July 2021, TML revealed reductions on its two and five-year fixed rate BTL Limited Edition products with rate reductions of 0.15 percent.

TML’s two-year fixes are down from 3.39 percent to 3.35 percent at 70 percent LTV, and 3.55 percent to 3.45p percent at 75 percent loan to value.

On this Limited Edition range, Mr Griffiths explained: “Landlords and brokers are benefiting from increased competition in the specialist buy to let mortgage market.

“The combination of reduced rates and our Limited Edition with reduced completion fees makes us stand out from our peers. It also offers greater choice for landlords.”

He added: “Whether they are looking to raise capital to increase the number of properties in their portfolio or refinance existing arrangements to better suit their needs.”

Pepper Money

Pepper Money recently announced increases to its maximum LTV for its Pepper 60 BTL.

On top of this, the UK-based money lender confirmed rate cuts across several of its BTL and residential mortgages.

Pepper Money has raised its LTV for its BTL range to include 75 and 80 percent LTV, with five-year fixed rates starting at 3.23 percent.

For individuals who have had negative credit history recorded over the last two years, the lender expended its 85 percent LTV to include this group.

Its biggest rate cut came towards its two-year fixed rate product, which has dropped from 6.45 percent to 5.65 percent.

Overall, Pepper made around 50 rate reductions across its two and five-year fixed rate residential mortgages.

Across its BTL range, the lender completed 30 rate reductions on its two and five-year fixed rates,

Pepper’s two-year fixed rate ‘Pepper 48’ product from its BTL range has been cut by 0.35 percent to 3.25 percent.

In an effort to make its BTL range accessible to consumers, the lender has streamlined its valuation fees.

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