Banks and building societies are starting to increase their maximum loan sizes as part of their plans to ramp up lending. This follows the news property valuers are returning to work.
Santander for Intermediaries announced last week that its valuers will be inspecting properties again and it has been able to raise its maximum loan size for residential mortgages up to £1 million. The lender has also increased its cap back up to £750,000 for buy-to-let mortgages.
Applicants will need a 15% deposit to qualify for Santander's residential mortgages and a 40% deposit for its buy-to-let mortgages.
What has Barclays changed?
Barclays for Intermediaries is the latest large bank to announce that it’s property valuers are back at work. The bank is lowering the price on a selection of two, three, five- and seven-year fixed rates by up to 0.10% and the price cuts apply to mortgages between £5,000 and £2 million.
Aaron Strutt, product director at Trinity Financial, says: “If you are planning to apply for a mortgage there is a lot more choice than there was a few weeks ago. The lenders will still use automated property valuations for the more straightforward applications as it speeds up the process.
"Barclays cheapest rate is sub-1.35% for a two-year fix and below 1.65% for a five-year fix. It is still offering up to 5.5 times salary mortgages for borrowers earning over £75,000 or £100,000 jointly."
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Accord for Intermediaries has increased its maximum loan-to-value for residential purchases to 85% and raised its maximum property value from £1m to £2m.
New applications will receive a physical valuation where possible subject to guidelines and the lender is still using system-generated property valuations for lower loan-to-value transactions.