Fleet Mortgages has altered its HMO criteria so it will accept properties with more than one kitchen and make loans available to 75% loan-to-value.
Fleet Mortgages has altered its HMO criteria so it will accept properties with more than one kitchen and make loans available to 75% loan-to-value.
With a minimum valuation of £150,000 multi-unit blocks are accepted with up to 10 self-contained units.
With new builds Fleet will offer loans up to 70% LTV for purpose built properties and to 60% for converted properties.
The lender defines new builds as 'properties constructed or converted within the last 12 months, or properties that have never been occupied'.
Bob Young, chief executive of Fleet Mortgages, said: “We kicked off the new year with the introduction of a number of new products and now we begin a focus on amending and updating our criteria in order to react to the changing market and the needs of our intermediary partners and their clients.
“Upping the LTV levels for new build and recent conversion properties, plus accepting more than one kitchen within a HMO property, are just the first in a series of criteria changes we will be making in the forthcoming weeks."
Fleet Mortgages is currently working at a 12-month lending run rate of £500m, while the lender aims to increase this to £750m in 2016.
Young added: “It has been an incredibly busy start to the year with activity at high levels. We see the limited company buy-to-let market continuing to draw in demand and interest because of the tax relief and stamp duty changes, however we still believe that, even post-end of March, we will continue to see strong levels of business across the sector.
“Our aim as always is to be adaptable and willing to react quickly in a nimble manner. While our overwhelming focus remains on buy-to-let, this adaptability means we see opportunities and potential in other mortgage sectors, where a vigorous approach to underwriting and our operational efficiencies would translate easily across.
“This is why we are looking at the commercial sector, which would be a natural move, but also perhaps the owner-occupier market. It will be an exciting year for Fleet Mortgages and we would urge all stakeholders to make sure they receive our regular updates on both product and criteria.”
