UCB to increase LTVs and loan limits

UCB Home Loans is:

- Increasing the maximum LTV on buy-to-let properties from 80% to 85%, meaning that borrowers will now be able to borrow up to £350,000 at 85% LTV.

- Increasing the maximum buy-to-let loan size from £400,000 to £600,000.

- Increasing the maximum self-certification loan size from £750,000 to £1 million;

- Increasing the aggregate loan (the maximum amount outstanding on all buy-to-let mortgages for one borrower) from £400,000 to £600,000.

The changes reflect the increase in house prices seen across the UK since the maximum loan levels were last increased in October 2002.

“The decision to increase the buy-to-let LTV comes as a direct result of demand from brokers, and the new levels place us in a much more competitive position on self-certification and buy-to-let mortgages,” said UCB Home Loans managing director, Keith Astill.

“Together with our competitive products and excellent service I am confident that we shall continue to see increasing levels of business. We are now placing a significant emphasis on buy-to-let lending, and the new 85% LTV will enable us to provide the level of service that brokers are demanding.”

Around 75% of mortgage applications at UCB Home Loans are for self-certification customers, with the remainder being buy-to-let mortgages.