BTL, commercial, and residential loans see updates
In a series of announcements today, several UK lenders have revealed significant changes to their mortgage offerings, effective January 17.
Foundation Home Loans expanded loan size limits
Foundation Home Loans, specialising in non-mainstream borrowers, has focused on increasing maximum loan sizes across its residential product tiers:
F1 and F2 tiers
- 65% LTV: Maximum loan size increased from £2 million to £3 million.
- 75% LTV: Raised from £1 million to £1.5 million.
- 80% LTV: Increased from £750,000 to £1 million.
- 85% LTV: Remains capped at £750,000.
F3 tier
- 65% LTV: Loan size doubled from £500,000 to £1 million.
- 75% LTV: Increased from £500,000 to £750,000.
- 80% LTV: Remains at £500,000.
“The needs of specialist residential borrowers continue to grow and this demographic continues to develop with a strong requirement for improved criteria and greater product options,” said Tom Jacob (pictured), director of product and proposition at Foundation Home Loans.
Accord adjusts transfer rates
Accord has announced modifications to its buy-to-let product transfer range. Most rates will see increases, with products at 60% and 65% LTV rising by up to 0.15%, and 75% LTV products increasing by up to 0.20%. Meanwhile, the 80% LTV two-year product rate will decrease by 0.21%, though its five-year counterpart will rise by 0.10%. The current range will be withdrawn at 8pm on January 16, with the new range launching at 9am the following day.
Metro Bank expands lending criteria
Metro Bank has expanded its commercial mortgage offering by increasing its maximum loan-to-value ratio from 70% to 75% for large commercial mortgages.
Mark Davies, director of commercial banking, emphasised the move’s importance for business growth. “For businesses of any size in any sector, the chance to own their own premises can be transformational in terms of enabling future growth and financial security. We are serious about supporting business and we hope that these changes will support entrepreneurs and continue to drive growth across the country,” he said.
Atom Bank reduces commercial mortgage rates
Atom Bank, currently the UK’s highest-rated bank on Trustpilot, has implemented significant rate reductions across its commercial mortgage range. Fixed rates have been cut by up to 0.47%, while variable rates have decreased by up to 0.41%. The bank now offers variable rates starting at 1.65% over base rate and fixed rates from 6.23%. Additional discounts are available for loans between £1 million and £4 million, potentially reducing variable rates to 1.40% over base rate.
Visit the respective sites of lenders to learn more about the specific rate increases.
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