Mortgage Updates from Lenders

Foundation Home Loans have increased the maximum value of the total portfolio that can he held with them from £3m as a standard to £5m.

Buckinghamshire Building Society have revised their minimum income requirements on their Buy to Let range. On loans of 75% LTV or below, they will now accept a minimum income of £25,000. For loans over 75% LTV, the minimum income of £35,000 remains. This is also applicable to First Time Landlords.

Chorley Building Society have launched a new product at 95% LTV as part of a government “First Homes” Scheme where Key Workers are given a discount on the purchase price of new homes.

The Mortgage Works (TMW) are returning to 80% LTV lending for properties with an energy performance rating of C or above.

Virgin Money have increased their LTV on new business Buy to Lets from 60% to 65% with no increases in pricing as of Friday 2nd July.

Loughborough Building Society have relaunched their university product, a joint borrower sole proprietor proposition for students who wish to rent out up to two rooms. The product is available on properties in England and Wales where the student has at least one year left on their course at a university. The university must be less than 10 miles from the mortgaged property and the borrower must intend to live in the property themselves.

Santander have told us that from Monday 5th July they will be making some significant changes with regards to where deposits come from. From 5th July, they will no longer accept Residential or Buy to Let applications where your mortgage deposit funds come from one of the following countries:

Afghanistan, Belarus, Bosnia & Herzegovina, Burundi, Central African Republic, China, Cuba, Democratic Rep. of Congo, Egypt, Guinea, Guinea-Bissau, Iran, Iraq, Lebanon, Libya, Mali, Montenegro, Myanmar (Burma), Nicaragua, North Korea, Republic of Serbia, Russian Federation, Serbia & Montenegro, Somalia, South Sudan, Sudan, Syria, Tunisia, Turkey, Ukraine, Venezuela, Yemen, Zaire (Democratic Rep. of Congo), Zimbabwe.

In addition to these deposit changes, from Monday 5th July the other following changes will also come into effect:

• They will not accept deposit funds originating from a child’s bank account/trustee account or a foreign business bank account
• For gifted deposit applications where the funds are received from abroad, there are some additional requirements they may ask for to evidence the deposit including a letter from each donor providing more details

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