Fleet Mortgages has changed its criteria to accept gifted deposits and a lower minimum property valuation of £100,000 outside London and the South East.
The lender’s chief executive Bob Young (pictured) said the changes aim to improve the lender’s flexibility after the EU Referendum result, while he revealed that Fleet is reviewing its entire product range and will release a new set of products shortly.
To use a gifted deposit with Fleet the borrower must supply bank statements to show the source of the funds, a solicitor must obtain identification from the gifter and written confirmation of the gift being non-refundable and the gifter having no interest in the property.
The minimum property valuation outside London and the South East applies to HMO and ex-Local Authority properties and was previously £150,000.
Fleet also changed the maximum aggregate exposure a landlord borrower can have with Fleet. The maximum LTV will be 60% LTV up to £2m (previously 65%) while the lender has introduced a further level of 55% up to £5m
Young said: “We are currently in the process of reviewing our full product range, in light of the Brexit vote and how the rest of the buy-to-let sector responds to it, and we will be announcing new products very shortly.
“Our commitment to both buy-to-let and intermediary distribution has not wavered and we will be working closely with all partners and stakeholders to deliver a service and proposition that can excel in this new market environment.”
He added: “Certainly, since the result of the EU Referendum there has been a need to adopt a slightly more cautious approach to our lending, given the level of uncertainty about how the decision to leave might ultimately pan out for our sector and coupled with the fact that it has been an incredibly busy time for us recently.
“That said, in terms of the criteria changes we have announced today, our aim has been to develop our flexibility.”
Fleet has also dropped its minimum external floor area property requirements from 40sqm to 35sqm, flats above or adjacent to commercial premises no longer have to be situated in a city centre location, and if the property was built within the last 10 years it has now added two certificates to its accepted certificates list – CRL Warranty Scheme and ICW Warranty Certificate.