HTB Update

Specialist BTL, semi-commercial and holiday let criteria enhancements

As a lender who is constantly evaluating how we improve and simplify our proposition in what is an increasingly complex lending environment, we’ve introduced a raft of positive enhancements.

The new measures include key criteria improvements for marginal semi-commercial cases, broader appetite for holiday let landlords, support for vulnerable tenants, and changes to our policy on mortgage debentures alongside other improvements.

Increasing loan amount certainty for semi-commercial cases

Change:

• For semi-commercial cases where, following valuation, the residential aspect is less than 50% we will continue to lend up to 75% LTV and 1.25x interest cover. *
• Note that where the residential aspect is less than 50%, we may need to reprice the application, which could impact serviceability.

Benefit:

• This reduces the risk of the loan amount being lowered following valuation, due to a change in the residential/commercial split.

Supporting more holiday let landlords, including first timers

Change:

• Restrictions removed on the maximum number of units with HTB and the maximum loan amount.
• This is subject to our existing exposure limit which is currently £25m with no requirement for experience now required.

Benefit:

• This will open the door for first-time holiday let landlords and, due to lifting the restriction on the number of units, enable us to accommodate larger holiday let landlords.

Supporting landlords with vulnerable tenants

Change:

• We now accept cases where properties are let to a third party for emergency housing, rehabilitation or social transitional purposes, provided there is a credible professional operator providing appropriate management.

Benefit:

• We are now able to accept vulnerable tenants and offer additional support for landlords with wider property portfolios. This will add further value for those of you working on more complex cases. 

Reducing client burden with mortgage debenture threshold increased to £2m

Change:

• The threshold above which a mortgage debenture is required has been increased to £2m.

Benefit:

• Reduces the administrative burden on your borrower and makes lending even quicker and simpler for you.

These measures have been made as a direct result of your valued feedback, and whilst the above is only a few of the key improvements we are announcing today, we appreciate there’s a lot to digest here.

Rest assured that we have an expert team of property specialists in place to detail these changes and support your clients with all their buy-to-let, semi-commercial and holiday let borrowing requirements.

So, if you have any questions, please contact your Business Development Manager or call the Specialist Mortgages team on 020 7862 6244.