Fleet Mortgages today announced a raft of criteria changes that take place immediately, including allowing gifted deposits to borrowers.
The gifted deposits apply to donations from the immediate family. A solicitor must get identification from the gifter, as well as authorised bank statements.
The criteria changes also tweak the lender’s minimum property valuation, maximum aggregate exposure for landlords and the acceptance of certain building certificates.
The minimum valuation accepted by Fleet Mortgages for both HMO and ex-Local Authority properties has been cut by £50,000 to £100k in regions outside London and the South East.
It remains £150k for properties in London and the South East.
In terms of the maximum aggregate exposure a landlord borrower can have with Fleet Mortgages, the maximum LTV will be 60 per cent up to £2m.
Previously this was 65 per cent. However, the lender has also introduced a further level of 55 per cent up to £5m, allowing more total borrowing per individual or limited company.
Fleet has also dropped its minimum external floor area property requirements from 40sqm to 35sqm.
Flats above or adjacent to commercial premises no longer have to be situated in a city centre location.
Additionally, if the property was built within the last 10 years, Fleet has added two certificates to its accepted certificates list – CRL Warranty Scheme and ICW Warranty Certificate.
Fleet Mortgages chief executive Bob Young says: “When we review our criteria our aim is to maintain our responsible lending focus but to also respond to our intermediary partners’ feedback and to the changing nature of the mortgage and property market.
“Certainly, since the result of the EU referendum there has been a need to adopt a slightly more cautious approach to our lending, given the level of uncertainty about how the decision to leave might ultimately pan out for our sector and coupled with the fact that it has been an incredibly busy time for us recently.
“That said, in terms of the criteria changes we have announced today, our aim has been to develop our flexibility – in areas such as the acceptance of gifted deposits from immediate family members – and to recognise the quality of our borrower and the ongoing demand for our products, which is why we have introduced the new 55 per cent LTV/£5m maximum aggregate exposure level.
“We are currently in the process of reviewing our full product range, in light of the Brexit vote and how the rest of the buy-to-let sector responds to it, and we will be announcing new products very shortly.”