Lender offers new fleet of LTV rates

Lender offers new fleet of LTV rates

Fleet Mortgages has made criteria changes across its new build and recent conversions lending, and for multiple occupation properties (HMO).

In the new build space, the lender is offering loans up to 70 per cent loan-to-value for purpose-built properties, and up to 60 per cent LTV for converted properties.

New builds are defined as properties that have been constructed or converted within the last 12 months, or properties that have never been occupied.

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In the HMO space, the lender will also accept properties that have more than one kitchen, where previously this was not acceptable.

HMO loans are available up to 75 per cent LTV and subject to a minimum valuation of £150,000. Multi-unit blocks are accepted with up to 10 self-contained units, and HMOs must be licensed where required.

Bob Young, chief executive officer at Fleet Mortgages, said the criteria changes have come off the back of a successful first year of lending in 2015, which saw more than £1.2bn of business flowing through its system.

Mr Young said: “Upping the LTV levels for new-build and recent conversion properties, plus accepting more than one kitchen within a HMO property, are just the first in a series of criteria changes we will be making in the forthcoming weeks.”

Adviser view

Andrew Turner, director of, said: “Housing policy is evidently evolving to favour investment that encourages construction activity, or renovation of old properties to accommodate more households. As such, it is welcome news that Fleet has increased the maximum loan-to-value for new builds and recent conversions.

“What is particularly positive here is the acceptance of houses in multiple occupation with more than one kitchen, as there are very few lenders who will look at properties of this type, and yet this is a growing part of the market.”