Fleet Mortgages has announced significant updates to its lending criteria, aimed at supporting a wider range of landlords and limited companies. These changes are designed to adapt to the evolving buy-to-let (BTL) market, making it easier for investors to secure financing.
What are the key updates to Fleet Mortgages’ criteria?
The latest changes from Fleet Mortgages include the acceptance of joint applications involving foreign nationals, provided at least one applicant is a British passport holder or possesses Indefinite Leave to Remain (ILR) or settled status. Additionally, applicants with eligible visas can now apply if they have lived in the UK for a minimum of three years and have at least 12 months remaining on their visa.
How does this affect limited companies?
Fleet Mortgages has expanded its lending criteria for limited companies, allowing company group structures registered throughout the UK, including Scotland and Northern Ireland. Previously, companies had to be registered only in England and Wales. This change opens up opportunities for more landlords operating through limited companies to access BTL financing.
What changes were made earlier this year?
In March, Fleet Mortgages made several updates to its lending criteria, which included removing the minimum income requirement and reducing the trading history requirement for self-employed applicants and contractors from two years to one full tax year. The maximum mortgage term was extended from 30 to 35 years, and the maximum loan-to-value (LTV) ratio for new-build flats was increased to 75%. Furthermore, height restrictions on blocks of flats were eliminated, and the range of acceptable property types and construction criteria was broadened.
What does this mean for landlords?
These updates are particularly beneficial for landlords looking to expand their portfolios or navigate the complexities of BTL financing. With more flexible criteria, including the acceptance of foreign nationals and a wider range of company structures, landlords can now pursue investment opportunities that were previously inaccessible. This shift reflects the changing dynamics of the BTL market, encouraging a more diverse range of applicants.
Frequently asked questions
What types of applicants can now apply for Fleet Mortgages?
Joint applications involving foreign nationals are now accepted, provided one applicant holds a British passport or has settled status. Eligible visa holders who have lived in the UK for at least three years can also apply.
How has the criteria for limited companies changed?
Fleet Mortgages now accepts limited companies registered anywhere in the UK, not just in England and Wales, broadening access for landlords operating through corporate structures.