Fleet Mortgages reveals criteria changes

Fleet Mortgages have announced new criteria changes which cover a wide range of areas including the acceptance of gifted deposits, minimum property valuation, maximum aggregate exposure for landlords and the acceptance of certain building certificates.

Related topics:  Mortgages
Rozi Jones
8th July 2016
Bob Young Fleet
"Certainly, since the result of the EU referendum there has been a need to adopt a slightly more cautious approach to our lending"

For the first time, Fleet Mortgages will now allow gifted deposits to borrowers if they have come from the immediate family, meaning a parent, sibling or grandparent.

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.

In terms of the maximum aggregate exposure a landlord borrower can have with Fleet Mortgages, the maximum LTV will be 60% up to £2m (previously 65%), however the lender has also introduced a further level of 55% up to £5m, allowing a greater level of total borrowing per individual/limited company.

Additionally, Fleet has 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, and if the property was built within the last 10 years, it has now added two certificates to its accepted certificates list – CRL Warranty Scheme and ICW Warranty Certificate.

Fleet also announced that it is in the process of reviewing its full product range in light of the Brexit vote and how the rest of the buy-to-let sector responds to it, and will be announcing new products shortly.

Bob Young, Chief Executive Officer of Fleet Mortgages, commented: “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% LTV/£5 million maximum aggregate exposure level. Add into this our dropping of the minimum valuation for HMO/ex-LA properties outside London and the South East plus the drop in minimum external floor area, and we believe we are responding to landlord (and intermediary) demand in a number of different areas.

More like this
Latest from Property Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.