KRFI launches sub 4% BTL product

Kent Reliance for Intermediaries (KRFI), part of the OSB Group, has introduced two limited edition buy-to-let ranges, including a sub-4% product with rates starting at 3.99% for loans of £100k to £750k at LTVs of 55%-75%. The fixed fee range offers reduced fees from £799 with two- and five-year fixed rate options at 75%-80% LTV. These products aim to support brokers and landlords amid a challenging market, according to OSB’s Adrian Moloney.

Analysis: Mortgage rates up, savings down – are banks profiteering?

Banks are facing criticism for quickly lowering savings rates following Bank of England base rate cuts while raising mortgage costs and keeping standard variable rates (SVRs) high. Although fixed savings and mortgage rates are not directly tied to the base rate, experts argue that these trends often benefit banks’ profits at customers’ expense

Mortgage rates are affected by swap market volatility, and SVRs are set at lenders’ discretion, with rates currently ranging widely from 5.34% to 8.99%.

Some lenders, such as Virgin Money and Clydesdale Bank, have reduced SVRs more significantly than recent base rate cuts, but their rates remain high. Experts highlight the limited impact of SVRs, as most borrowers are on fixed rates, though “mortgage prisoners” remain stuck on costly SVRs.

Fixed-rates continue upward trajectory: Moneyfacts

Fixed-rate mortgage costs continued to rise this week despite the Bank of England’s recent rate cut, driven by volatile swap rates. Average rates for two-, three-, and five-year fixed mortgages increased, with five-year rates rising the most, up 0.06%.

Building societies were particularly active, adjusting rates, withdrawing products, and launching new ones, while major lenders like Virgin Money, RBS, and NatWest raised selected fixed rates. Progressive increases were noted across various building societies, with inflationary pressures dimming hopes for early 2024 rate cuts. However, standout deals, such as TSB’s two-year fixed at 4.59% with incentives, still emerged.

Metro Bank removes maximum accepted rental limit

Metro Bank has removed its £100,000 maximum annual rental limit for buy-to-let (BTL) products, now accepting common law tenancies with rents exceeding this amount for terms up to 12 months. However, other types of common law tenancies, such as company lets or where the landlord is resident, remain excluded.

Director of mortgage distribution Charles Morley reaffirmed Metro Bank’s commitment to supporting landlords and strengthening its position as a specialist lender. This change follows a reported 22% drop in net loans in Q3, partly due to a mortgage portfolio sale.

BoE begins biggest overhaul in 30 years of rate-setting framework

The Bank of England is overhauling its rate-setting and communication processes, its biggest reform since 1997. Deputy governor Clare Lombardelli announced updates to forecasting, modelling, and decision-making to address past shortcomings, including failure to predict 2022’s inflation spike.

The changes include using alternative scenarios, modernising models, and improving communication, with progress to be reviewed next summer.

Halifax launches 1.5yr fixed product, TSB makes rate changes

Halifax has introduced a 1.5-year fixed-rate remortgage product, offering rates from 4.37% with £250 cashback and fees of £1,499, providing shorter-term stability and flexibility.

TSB has adjusted its rates, increasing five-year fixed rates for residential products at higher LTVs by 0.15%, while reducing rates for certain buy-to-let products by 0.10%. However, other buy-to-let and additional borrowing rates have risen by up to 0.30%.

FCA branded incompetent and MPs demand overhaul

A cross-party group of MPs and peers has issued a critical report on the Financial Conduct Authority (FCA), labelling it “incompetent” and highlighting failures in whistleblower handling, transparency, and oversight.

The report calls for reforms including a supervisory council, changes to leadership appointments, and a no-tolerance policy for integrity lapses, requiring legislative action. While the FCA claims it has improved, critics argue it needs greater scrutiny and collaboration with academics to strengthen its framework.

Revolut to enter European mortgage market

Revolut plans to enter the mortgage market in 2024, starting in Lithuania, followed by Ireland and France in 2025, with a fully digital offering promising rapid approvals within one business day. The move is part of its broader credit strategy, including potential overdrafts, as the bank continues to expand its services after reaching 50 million customers across 38 countries.

Recent milestones include limited UK banking authorisation and plans for branded ATMs, a business credit product, and buy-now-pay-later services in Europe.

Simply Conveyancing partners with Moverly to offer new platform

Simply Conveyancing has teamed up with Moverly to launch a platform that streamlines property transactions for estate agents. The platform speeds up listings, ensures compliance, and automates data collection, currently being trialled across 450+ estate agent branches. This partnership aims to modernise the property sales process by reducing admin and simplifying client onboarding.

Aldermore changes criteria for BTL remortgages

Aldermore has improved its buy-to-let remortgage criteria for properties purchased within the last six months, now allowing remortgages to be based on the current market value, up to a 75% LTV. This change enables landlords to apply for a remortgage from day one, potentially securing better deals and increasing equity.

Evidence of the original purchase price and funds used will be required, and the property must be fully registered with the Land Registry. The updated criteria apply to both portfolio and non-portfolio landlords, with free valuation and legal fees.