Family Building Society has today relaxed its buy-to-let affordability assessment, resulting in additional lending up to 35%.
This will typically result in a 15% improvement in lending power for capital raising applications and a 35% improvement in pound-for-pound remortgage cases.
In addition, Family Building Society has also launched a new interest-only expat buy-to-let 2-year fixed mortgage at a 75% LTV, available to purchase and remortgage at 4.69% plus 2% product charges.
Family Building Association head of intermediate sales Darren Deacon said: “This significant improvement in our affordability rating calculations, alongside the launch of our new 2-year expat buy-to-let product, is testament to our continued support for landlords both here and abroad.
“We offer landlords more borrowing power because they continue to face cost pressure in an uncertain market. That is exactly what the market and intermediaries need now.”
For applications for products that have been fixed for five years or more, nothing has changed and the assessment will continue to take place at the wage rate.
Meanwhile, Vida Homeloans has expanded its foreign policy to its entire buy-to-let range.
The most important changes are:
Mixed status applicants are now accepted
Where one applicant has the right to live and work in the UK indefinitely and the other applicant(s) has a non-permanent but acceptable visa type (and has lived in the UK for a minimum of twelve months), applications can now proceed as per standard policy up to the scheme limits.
Extensive acceptance of foreigners without a permanent residence permit
Vida will now consider providing loans to buy-to-let applicants who do not have permanent residence permits, provided they have a visa on Vida’s approved list.
Reduced UK residency requirement
The latest minimum continuous residence period in the UK for buy-to-let applicants has been reduced from 24 months to 12 months, opening the door to more recently settled borrowers.
Ross Williams, head of mortgage product management at Vida, said: “By allowing mixed status applicants to apply under the standard policy, and by expanding eligibility to foreigners without indefinite leave to remain when they hold one of our approved visa types, we are giving brokers the confidence, flexibility and certainty they need to submit more complex cases to Vida.”