Lower rates on two-year fixes and higher LTVs aim to support landlords and intermediaries
Family Building Society has introduced a new range of owner-occupier interest-only and buy-to-let mortgage products, alongside adjustments to its lending criteria.
The lender has reduced rates on its two-year fixed owner-occupier interest-only mortgages by five basis points (bps) and cut rates on its two-year fixed BTL products by 10bps. However, five-year fixed rates for owner-occupier interest-only mortgages have increased by 10bps, while five-year fixed BTL rates remain unchanged.
As part of the update, the mutual has raised the maximum loan-to-value (LTV) across its UK landlord, limited company, and expat BTL product ranges to 75%. Multi-unit freehold block (MUFB) applications will continue to be capped at 70% LTV.
The lender has also expanded its limited company BTL lending criteria by adding an additional standard industry classification (SIC) code. Special purpose vehicles (SPVs) registered under 68100 (buying and selling of own real estate), 68209 (other letting and operating of own or leased real estate), and 68320 (management of real estate on a fee or contract basis) are now eligible for applications.
Further details on the updated products are available on the Family Building Society’s intermediary website.
Darren Deacon (pictured), head of intermediary sales at Family Building Society, said the latest changes to their mortgages would support both UK-based and expat landlords.
“Enhancing our already flexible BTL criteria by increasing our maximum LTV, as well as adding to our acceptable list of SIC codes, will be welcomed by UK and expat landlords,” Deacon said. “And as the market undergoes further upheaval with uncertainty surrounding swap rates, landlords looking for short-term security of rate will, I’m sure, be pleased to see the price reductions we were able to make on our two-year fixed rate products.”
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