Buy-to-let lenders have announced a flurry of criteria and rate changes today.
Accord, Foundation and HTB are the latest to reveal criteria changes or rate cuts.
Earlier today Pepper Money announced it was returning to the buy-to-let purchase market and introducing light adverse options for landlords.
Hampshire Trust Bank also emailed brokers earlier today to announce that it is improving its criteria.
The lender is increasing its maximum LTV to 75 per cent for all loan sizes up to £15m.
It is reducing income cover ratios to pre-Covid levels and returning to the holiday let market.
In the email, managing director Charles McDowell says: “As the initial shock of Covid-19 and lockdown threw everything in the air, we reined in our appetite, but over the last few months we have gradually, yet purposefully, stepped up our drive to lend – and it’s fair to say this next step is a big one.”
He adds: “We continue to look closely at the quality of property income on each deal and therefore have no appetite to rely on income in the form of serviced accommodation, corporate lets or student accommodation.
McDowell also sets out the lender’s position on landlords who have taken a payment holiday.
He says: “I have seen people raise concerns that some lenders, including ourselves, are looking at applications for borrowers who have taken payment holidays differently.
“My view is clear and resolute on this point.
“I hold nothing against anyone who has taken a payment holiday, this is an extraordinary situation and it is right that borrowers are supported, but taking a payment holiday on a buy-to-let portfolio is clear evidence that there are underlying rental cash flow pressures.
“Many of the issues of the last financial crash were caused by financial products being put in the hands of people who couldn’t afford them and we must learn from that. In many circumstances, it is not appropriate to allow someone to become further indebted when they are struggling to service their current debts.”
Foundation Home Loans has written to advisers to say it is withdrawing products on Thursday to make “exciting changes” which include reductions of up to 20 basis points on some two-year fixed rate deals.
Applications for existing products will need to be submitted by 7pm tomorrow (Wednesday 22).
Meanwhile, Accord announced that on Thursday at 6pm it would be making a small reduction of 2 basis points to all its product transfer two-year fixes for landlords at 75 per cent LTV and increasing end dates to November 30.
