Fleet Mortgages has announced it will be reviewing a wide selection of current criteria in wake of the Brexit result, including the new acceptation of gifted deposits and minimum property valuation of £100,000, as well as tightening a range of criteria for buy to let lending.
The specialist lender will now be allowing gifted deposits for borrowers for the first time, as long as they come from an immediate family member, such as a parent, grandparent or sibling. In order for these to be accepted, bank statements must be shown to prove the source of funds, a solicitor must have identification from the person gifting and written confirmation they have no personal interest in the property.
The lender’s minimum valuation for Houses of Multiple Occupancy (HMOs) and ex-local authority properties has also been reduced from £150,000 to £100,000 in regions outside of London and the South East, yet remains at £150,000 for inside London.
In response to change in the property market, the lender has implemented the process of reviewing its full range of products, since the recent vote to leave the UK warranted a more cautious approach to lending. However, new products looking to develop more flexibility, are also in the pipeline.
Fleet Mortgages also made the decision to withdraw some of its higher loan to value (LTV) products, including all of its 80% and some of its 75% and 65% LTV mortgages from its range amid fears of falling property prices.
New products have also seen the maximum aggregate exposure landlords can have, be cut from 65% to 60% for loans up to £2 million, plus a further tier of 55% introduced for loans up to £5 million.
The changes are in response to not only the changing nature of the mortgage market, but also partner feedback and the need to maintain a responsible lending focus and still develop flexibility.
Despite many lenders responding to Brexit with more caution, the market remains a positive place, with some of the most competitive offers to date currently available.