Criteria changes continue in relentless March

March was another month packed to the rafters with criteria changes. There was positive news for brokers working with first-time buyers, new products for self-employed borrowers and new additions to the Knowledge Bank platform.

Related topics:  Blogs,  Mortgages
Nicola Firth | Knowledge Bank
21st April 2022
Nicola Firth Knowledge Bank
"The river of green mortgages launched slowed in March following the torrent in February and January."

The buy-to-let market has been the busiest in terms of criteria changes and new product launches, although the river of green mortgages launched slowed in March following the torrent in February and January.

There was plenty for us to get our teeth into, so let’s dive straight into the key changes.

Week one – WC 28th February

The month started with Shrove Tuesday and a raft of changes of interest for those looking to flip a property along with their pancakes. There was also news from the Bank of England that it is consulting on whether to withdraw the affordability measure which borrowers currently must pass if they want to take out a mortgage with a UK lender.

This would have important ramifications for brokers and borrowers and so we’ll monitor the situation.

In criteria news, Aldermore added a Help to Buy (Mortgage Guarantee Scheme) with 85-95% LTV under its owner-occupied product switch range. There was more positive news for first-time buyers with The Nottingham announcing a pair of new two-year fixed 95% LTV mortgages.

Pepper Money launched a range of lifetime tracker mortgages with no completion fee and rates starting at 2.67% on its Pepper 60 range.

There were also new products launched in the buy-to-let market with Gatehouse Bank announcing a limited-edition tracker product range for all mortgages at £500,000 or above.

Week two – WC 7th March

The second week of the month started with Newcastle Intermediaries launching a range of mortgages exclusively for self-employed applicants with just one year of accounts.

TSB changed its lending criteria on its lending policy for flats. It will now accept flats in blocks with balcony or deck access if the property has a maximum of six storeys, secured access at ground floor level and valuer confirmation the property is marketable and mortgageable.

There were fewer green mortgages launched in March following the avalanche in February and January, however Quantum Mortgages did release details of its green mortgage offering.

The buy-to-let specialist announced that borrowers will enjoy a reduced completion fee and pay rate for properties with an energy performance certificate of A or B, as well as the maximum LTV being boosted by 2%, giving a maximum LTV of 82%.

Week three – WC 14th March

On St Patrick’s day there was positive news for another Gaelic nation as LiveMore announced that it is bringing its interest-only products to the Scottish market to provide alternative mortgage solutions for over-50s borrowers.

Skipton Building Society announced it was signing up to ‘Home for Ukraine’ scheme and promised to support borrowers who may also want to register.

The ‘Homes for Ukraine’ scheme allows individuals, charities, community groups and businesses in the UK to host Ukrainian refugees, including those with no family ties to the UK.

West One Loans added to its buy-to-let product range, including a seven-year fixed-rate and lifetime tracker products available for standard and specialist properties.

Buckinghamshire Building Society launched a new first-time buyer 95% LTV mortgage product with an interest rate of 3.85% for those looking to get a foot on the ladder.

There was good news to end the week for brokers working with borrowers concerned about credit searches, as The Nottingham announced it has made the move to soft searches at agreement in principle stage.

Week four – WC 21st March

As Spring officially sprung, the Knowledge Bank team announced the Black & White’s bridging product range is now live on the system. This took the number of lenders over 270 on the Knowledge Bank platform with over 135,000 pieces of individual criteria.

Hodge announced it is expanding its residential development offering to incorporate lending on the alternative residential asset class, including student accommodation and retirement living.

YBS Commercial Mortgages changed its criteria on buy-to-let product to make them accessible to landlords borrowing in their own name. It removed the minimum threshold on the amount an individual landlord can borrow where they have at least six buy-to-let properties mortgaged with the lender.

Week five – WC 28th March

The last week of the month had news from Buckinghamshire Building Society regarding a new area of lending, Scottish Building Society announced it is lending to new post code areas, a pilot scheme from Spring Finance, and criteria enhancements from Skipton.

Starting with Buckinghamshire, it became the latest lender to launch a holiday let offering. It is bringing its flexible underwriting approach and niche market specialisation to this segment, specifically offering a lending option for properties in coastal and national park areas.

Spring Finance launched its bridging pilot scheme which includes: regulated, non-regulated, first charge, second charge and refurbishment products. The pilot is being run with some of the industry’s leading intermediaries ahead of a full launch later in Q2.

And finally, Skipton Building Society updated its lending policy to allow for mortgages on new build buy-to-let flats, as well as changes to buy-to-let stress rate calculations.

Every month of 2022 has been filled with activity from lenders. March was no exception with plenty of buy-to-let changes, new first-time buyer products and it was great to see lenders signing up to the Homes for Ukraine scheme. To stay on top of all the latest changes brokers can sign up to Knowledge Bank to receive all the criteria changes across the lending spectrum.

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