British multinational Barclays has now placed restrictions on buy-to-let deals, fixing the loan-to-value limit at 70 percent, and as a result has repriced several of its available products.
These new restrictions represent a five percent drop from how much Barclays previously lent in terms of loan-to-value on properties to be used for renting.
In a recent communication issued to mortgage brokers, Barclays explained why it was making alterations to both criteria and pricing. It stated that the month of September is commonly among the busiest times on the calendar for the market, and that the bank expected it to be the same for 2020.
With this in mind, and to ensure that it is still able to create the correct balance between providing an extensive array of different products while still maintaining the same levels of service, it has reviewed the presently available product offerings and made some alterations.
As well as the changes made to loan-to-value pricing, it is also lowering the rates offered for two of the products from its range entitled “Help to Buy”.
Barclays will trim down the rate for its 60 percent loan-to-value, two-year fixed rate offering called “Great Escape” by 0.1 percentage point. It is also bringing back a 60 percent loan-to-value product with a five-year fixed rate at 1.85 percent, without a fee included.
The restrictions and changes made to the loan-to-value for buy-to-let products currently available from the bank were made effective from Friday, September 4.