Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Pepper Money Reduces BTL and Residential Rates
Pepper Money has announced reductions in both residential and buy-to-let (BTL) mortgage rates, alongside the introduction of a limited-edition remortgage range. According to the lender, residential rates now start from 5.38% up to 75% loan to value (LTV), while BTL pricing begins at 4.54% up to the same LTV tier.
The new limited-edition remortgage-only range is available across Pepper Money’s residential offering. The two-year fixed products in this range come with no application fee, a free valuation, and a completion fee of £1,995.
Atom Bank Improves Affordability Criteria
Atom Bank has improved affordability for its prime and near prime mortgage products by increasing the maximum loan-to-income (LTI) ratio. This change applies up to 90% LTV and is designed to enable borrowers with household incomes between £45,000 and £60,000 to access larger mortgages. Atom Bank stated that this could increase borrowing by between £23,000 and £31,000.
The prime range is available to applicants with no defaults in the last 36 months and no more than one default in the previous 37 to 72 months, with any unsatisfied defaults not exceeding £500 per applicant. The near prime range is open to borrowers with light adverse credit history or thin files, provided they have no county court judgements (CCJs) in the last 36 months and no more than one in the last 37 to 72 months. Any unsatisfied CCJs must not exceed £500, and applicants must have no mortgage arrears in the last 12 months, with no more than two months of arrears in the last 13 to 24 months.
Relevance for Letting Agents and Inventory Clerks
These changes may be of interest to UK letting agents and inventory clerks, as adjustments to mortgage rates and affordability criteria can influence landlord purchasing decisions and the overall buy-to-let market.
Source: Mortgage Solutions