Exploring New Horizons in Buy-to-Let Mortgages – Beverley Building Society’s Debut
In a significant move that reflects the evolving landscape of real estate investment, Beverley Building Society has made its debut in the buy-to-let (BTL) mortgage market. With the launch of two new products, this long-standing institution is catering to the growing demand from landlords seeking competitive lending solutions to optimize their investments.
**The Unveiling of Beverley Building Society’s Buy-to-Let Offerings**
Beverley Building Society, a name synonymous with trust and reliability, has taken its first steps into the buy-to-let mortgage realm, introducing two distinct products tailored to address the needs of both UK residents and expatriate investors.
For UK-based customers, the society is offering a variable-rate BTL mortgage at an enticing rate of 5.64 percent. This product comes with a maximum loan-to-value (LTV) ratio and a reasonable completion fee of £995. This competitive offering is expected to capture the attention of landlords looking to leverage their investments to their fullest potential.
For expat BTL customers, Beverley Building Society has crafted a product set at a variable rate of 6.04 percent. This option is accompanied by a maximum LTV of 70 percent and a completion fee of £995. The society acknowledges the unique circumstances of expatriate investors and aims to provide them with an opportunity to maximize their real estate investments in the UK market.
The introduction of these BTL products signifies the society’s commitment to innovation and responsiveness to market demands. Both novice and experienced landlords can benefit from these offerings, with the opportunity to hold up to three buy-to-let properties per client—a compelling proposition for those seeking to expand their real estate portfolios.
It’s worth noting that these mortgage products are not restricted solely to non-owner occupiers; they are open to a broader spectrum of borrowers, further enhancing their appeal and accessibility.
**Eligibility Criteria and Next Steps**
For those interested in the UK BTL product, a minimum application income of £20,000 per annum is a requirement. On the other hand, the expat BTL product necessitates a minimum application income of £40,000 per annum. Additionally, for the expat offering, the society maintains a list of acceptable countries, and the involvement of a UK named individual—whether a family member or solicitor—is mandatory, alongside their address for service of notices.
Simon Glass, the Head of New Lending at Beverley Building Society, expresses his enthusiasm for this new venture: “I am thrilled to announce our official launch into buy-to-let lending. I am confident that our expertise and innovative solutions will empower aspiring property investors to achieve their financial goals. This strategic expansion marks a significant milestone in our mission to provide accessible and tailored mortgage products to a broader range of customers.”
**Shifts in the BTL Landscape: Bluestone Mortgages’ Transition**
In a contrasting development, Bluestone Mortgages, now under the ownership of BTL stalwart lender Shawbrook Bank, is shifting its focus away from the buy-to-let market. Starting from August 11, the lender will no longer entertain new BTL applications. Existing applications from BTL investors will continue to be processed according to standard procedures.
Bluestone Mortgages aims to redirect its efforts towards residential mortgages, particularly catering to more complex applicants such as the self-employed and those with intricate credit histories and income sources. This pivot is driven by a changing economic climate and a surge in customers who do not fit the conventional lending profile.
Reece Beddall, the Sales and Marketing Director of Bluestone Mortgages, elaborates on this shift: “With the current economic climate contributing to growth in the number of customers who no longer fit the mainstream lending profile, we are experiencing increased levels of demand. This is an exciting time for Bluestone, and we’re fully committed to and focused on doubling down our efforts to help would-be and existing borrowers who rely on our approach to realize their homeownership goals.”
As the real estate investment landscape continues to evolve, the entrance of Beverley Building Society into the buy-to-let mortgage market signifies a dynamic shift in lending solutions. With competitive offerings tailored for both UK and expat investors, and a commitment to expanding accessibility, this institution is poised to make a significant impact on the BTL market. At the same time, Bluestone Mortgages’ strategic transition reflects the adaptable nature of the industry, as it seeks to serve a changing clientele in a rapidly transforming economic environment.
If you are interested in a BTL mortgage from the Beverley Building Society, these are the basic terms:
What they need:
- The property must be in the UK.
- Up to 70% loan size to the value of the property (LTV).
- Rental income must be at least 130% of the monthly mortgage payment, at the higher rate of 5.5%, or the current interest rate of the mortgage + 2%.
- You must have at least £20,000 income from non-rental income (£40,000 if Ex Pat).
- Private individual landlord (no entities)
- Minimum EPC rating of E.
- If the landlord lives overseas, the name and address of a UK resident (family member or solicitor) will be required for the service of notices.
- The landlord may live in the following countries:
Austria, Belgium, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Italy, Japan, Kingdom of the Netherlands (The Netherlands, the Netherlands Antilles and Aruba), Latvia, Lithuania, Luxembourg, Malta, New Zealand, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, South Korea, Spain, Sweden, Switzerland, United Kingdom*, and UAE.*Does not include UK Crown dependencies; the Isle of Man and the Bailiwicks of Jersey and Guernsey).
What they won’t allow:
- You must not live or have lived in the property yourself.
- You must not have more than 3 Buy-to-Let properties already.
- Holiday Lets
- Mixed use
- First Time Buyers
- Second Charge
- Social Landlords