Woolwich relaunching B2L 75% LTV direct deals
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Woolwich is relaunching its 75% LTV buy-to-let deals tomorrow, through its direct only channel.
The lender was forced to pull its 75% LTV deals in November, less than one month after launching them, in order to manage service levels.
Woolwich is initially only launching the deals through its direct channel, but says it hopes to relaunch through brokers when it is confident its systems are ready.
A spokeswoman for Woolwich says: “We recognise the importance of supporting the buy-to-let market, therefore we will be re-introducing 75% LTV for buy-to-let in a controlled way, beginning with our direct channels.
“We will monitor demand and will make these products available to brokers as soon as we can, ensuring that customer experience and processing times are protected.”
Woolwich pulled its 75% LTV deals in November 2011 as a result of it being inundated with applications from brokers.
The lender also suffered another setback this month when its back office system for processing buy-to-let cases crashed for two days.
It also had to increase its service-level agreement for initial case assessments to fourteen working days.
It will be launching a number of new deals through its direct route tomorrow, including a two-year fixed rate up to 75% LTV at 5.29%, with a £3,999 fee.
It will also be launching a two-year tracker up to 75% LTV at base +3.99%, also with a £3,999 fee.
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Readers' comments (4)
paul taylor-fesler | 18 Jan 2012 3:25 pm
great idea but look at the fees!!
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Jools | 18 Jan 2012 3:44 pm
Cue Stephen Marchant doing voice over on the add:
oh, there's a cow - looks like it's made of cash - that'll be the cash cow then...
and underneath there's someone milking it for all its'worth.....and there's the £4k arrangement fees hitting the bucket"
....and there's a buy to let investor going somewhere else for their mortgage.
Ok so their previous deals were too generous when coupled with the criteria and ltv, but 5%+ with a 4k fee? pricing themselves out of the market big time.
Wonder how many walk in buy to let enquiries they actually get.
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Anonymous | 18 Jan 2012 3:47 pm
When compared with some of the percentage fees out there it probably works out ok though.
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Ketan Yadav - Avenue & Co Private Finance | 20 Jan 2012 8:29 am
The 3.99% Fixed rate deal for 2 yrs with £3999 fee at 60% LTV is actually currently the best BTL deal out there today - if you are borrowing over £300,000 to £1m.
Other lenders such as BMS charge on a similar rate and deal a 2.5% fee and Northern Rock a whopping 3.5% fee.
Large fixed fees are worth paying for larger loans, percentage fees are worth it for smaller loans.
Its just a shame that dual pricing is being tested hewre by Woolwich - through the back door via branches.
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