Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Foundation, Aldermore and TMW to Hike BTL Rates This Week
Three major buy-to-let lenders — Aldermore, Foundation and The Mortgage Works (TMW) — are making changes to their product ranges this week, with several rates being increased and some products withdrawn altogether. Intermediaries holding decisions in principle (DIPs) on affected products face tight deadlines to submit full applications or risk losing them.
Foundation to Withdraw Most BTL Products
Foundation will withdraw the majority of products across its buy-to-let range at 5.30pm on Thursday 17 September, with replacement products carrying higher rates being introduced the following day.
Two products will be withdrawn without replacement: the F2 MUFB five-year fixed at 6.34% with a £4,995 fee, and the F2 Holiday Let five-year fixed at 6.44%, also with a £4,995 fee.
Intermediaries with DIPs on affected products must convert them to a full mortgage application (FMA) and submit before the 5.30pm deadline on 17 September. Any DIP not converted and submitted by then will no longer be valid.
Foundation has also said that application and valuation fees must be paid within three working days of an FMA being submitted. Applications where either fee remains unpaid by 5.30pm on the third working day following submission will also become invalid.
TMW Announces Rate Changes
The Mortgage Works is making selected rate increases and reductions across its new business and switcher ranges from Thursday 17 September. New business fixed rates will start from 3.49%, while tracker rates will start from 3.99%. All trackers will include a switch-to-fix option. Intermediaries have been advised to consult TMW's latest new business and switcher product guides for full details.
Aldermore Reprices Residential and BTL Ranges
Aldermore is withdrawing and repricing rates across its residential and buy-to-let ranges at 5pm on Wednesday 16 September. The lender has urged brokers to submit DIPs ahead of the deadline, confirming that DIPs remain valid for 30 days and will secure the product even if it is subsequently withdrawn.
Aldermore has also reminded brokers that cases should generally not be converted to full application until they are fully packaged. Once a DIP is converted to a full application, brokers will have 10 days to provide the required supporting documents.
Other Lender Changes
CHL Mortgages and Moda Mortgages are set to withdraw their current mortgage product ranges on 16 September.
For letting agents and inventory clerks, the flurry of lender changes may affect landlords reviewing their borrowing costs, potentially prompting remortgage or refinancing activity in the weeks ahead.
Source: Mortgage Strategy