Accord has given portfolio landlords a lift by offering free standard valuation and up to £1,000 cashback on fixed rate purchase mortgages.
From today (1 November), the extras will be added to the lender’s mortgage range, which includes a two-year fixed rate at 1.99 per cent and a 2.19 per cent three-year fixed rate for landlords with a 40 per cent deposit.
The mortgages have a £950 product fee and come with free standard valuation, and £500 cashback on completion.
Longer-term loans include a 3.19 per cent five-year fixed rate at 75 per cent loan-to-value, which has a £195 fee, £1,000 cashback on completion and free standard valuation.
If they sort out their underwriting, the rest will follow. I think it will sort itself out.Michelle LawsonPortfolio landlords – those with four or more properties – have recently been hit by a wave of regulations that have made borrowing more difficult and led to reports that some could leave the market.
Since 30 September, the Prudential Regulation Authority has required lenders to consider the viability of a landlord’s whole portfolio when they apply for a new loan, as well as taking into account their income and expenditure.
The changes came on top of tougher affordability tests for buy-to-let lending that came into effect on 1 January.
Chris Maggs, commercial manager at Accord Buy-to-Let, said: “Despite the changes to the buy-to-let market in recent years property investors have not been deterred, and many are still looking to expand their portfolio where they can.
“That is why we are offering landlords a few additional extras to help manage the upfront costs of buying a new property.
"Our new purchase range includes a choice of over 20 mortgages which offer a cashback boost plus free standard valuation, so there are plenty of options to suit many budgets and circumstances.”
Michelle Lawson, director at Hampshire-based Lawson Financial, said: “It all helps - I am all for innovation. It is great that lenders are bringing out a lot of incentives but if it doesn’t fit, it doesn’t fit.”
She said affordability requirements and criteria were stopping cases from going through, along with poor underwriting.
Ms Lawson said: “If they sort out their underwriting, the rest will follow. I think it will sort itself out.”
simon.allin@ft.com
