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Important Changes to Family Building Society.

10 November 2016

National Counties and The Family Building Society logo

 

From 1st December, Family Building Society’s Buy to let product range will be underwritten differently to how they are currently under National Counties. This change is following the publication of the PRA's Supervisory Statement regarding underwriting of BTL loans rather than as a consequence of their rebrand.  

Family Building Society therefore wanted to let you know that from 1 December, They will calculate borrowing on BTL cases as follows:

Remortgage applications where no new borrowing is being taken

  • For loans up to 65% of the property value or purchase price (whichever is lower), the loan amount is assessed on the basis that the monthly rent must exceed 130% of the interest payable per month*
  • For loan amounts between 65% and 70% of the property value or purchase price (whichever is the lower), the loan amount is assessed on the basis that the monthly rent must be greater than or equal to 135% of the interest payable per month

* Calculated on their Residential Investment Managed Mortgage Rate (MMR)

Purchase applications or remortgages where extra funds are being taken

The loan amount is assessed on the basis that the monthly rent must be equal to or exceed 145% of the interest payable per month calculated at the higher of:

  • The origination rate plus 2%; or
  • The Society's monthly BTL MMR (currently 5.29%); or
  • 5.5%

This is in line with the rest of the market and doesn't affect the range of products they have on offer, which includes their expat lending.

Please note that they are now adopting this new approach for their pipeline business.

If you have any questions contact their Mortgage Desk on:

Telephone: 01372 744155 Email: mortgage.desk@familybsoc.co.uk


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