Rolled out to boost borrower access and property investment
Butterfield Mortgages has introduced new products, while April Mortgages and The Mortgage Lender (TML) have made policy changes, aiming to support borrowers and property investors.
Butterfield Mortgages, a London-based lender specialising in prime residential mortgages, has launched two fixed-rate products aimed at high-net-worth individuals.
Available through brokers and directly from the lender, the offerings include a two-year fixed rate starting at 5.15% and a five-year fixed rate starting at 4.95%. These rates apply to new owner-occupied mortgages exceeding £2 million, subject to individual assessment.
The new products are available for a limited time and add to the lender’s existing range, which includes a two-year base rate tracker product starting at 1% - plus the Bank of England rate, with a minimum pay rate of 2.5%.
“We are very pleased to introduce these new offerings to the prime central London market,” said Alpa Bhakta (pictured left), chief executive of Butterfield Mortgages. “Following the Bank of England rate cuts and the latest house price indices returning year on year growth, momentum is returning.”
Meanwhile, April Mortgages has increased the proportion of bonus, overtime, and commission income considered for affordability calculations from 50% to 80%. The change is aimed at supporting borrowers with variable income, particularly first-time buyers, home movers, and those seeking like-for-like remortgages.
The lender’s AffordAbility+ offering allows borrowers taking out 10- or 15-year fixed rate products to access loan amounts up to 25% higher than before.
“Affordability remains the hot topic across the mortgage industry with first-time buyers and those looking for a bigger home struggling to access the loans they need,” said James Pagan (pictured centre), director of product and portfolio at April Mortgages. “Having listened carefully to broker feedback, we understand this is an area where our proposition can make a real difference to UK homebuyers.”
The Mortgage Lender (TML) has also raised its maximum loan amount for first-time landlords from £350,000 to £500,000 to improve accessibility for new investors. In addition, the lender has introduced a new 80% loan-to-value (LTV) product for buy-to-let investors, allowing landlords to purchase properties with a smaller deposit or extract more equity from existing assets.
The specialist lender has also repriced several buy-to-let and residential products, with selected rates in its buy-to-let range reduced by 0.05%. It reintroduced its two-year fixed rate limited edition buy-to-let products at 75% LTV, offering a 5% fee variant at 3.79% and a 3% fee variant at 4.79%.
“The rental market is a massively important part of the UK economy and social landscape, and as a lender that understands BTL, we want to continue to support this as much as we can,” said Chris Kirby (pictured right), head of sales at The Mortgage Lender. “The property market, particularly for BTL, is more complex than it has ever been before, and will continue to evolve as further governmental changes, such as energy efficiency ratings and enhanced tenant protection, become law and are implemented.”
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