UCB Home Loans enhances buy-to-let rental cover calculation

UCB Home Loans has announced that it will be enhancing its buy-to-let rental cover calculation, with effect from 22 February.

This latest improvement to the lenders buy-to-let criteria sees the rental cover calculation enhanced from 125% at Bank of England base rate plus 1%, to 110% at Bank of England base rate plus 1%.

“This change is designed to increase our competitive position in the market and will enable a higher percentage of buy-to-let cases to be processed on a self-funding basis,” said UCB Home Loans managing director, Keith Astill.

“It also plays a key role in our marketing strategy, as we are becoming increasingly active at the high-net-worth end of the buy-to-let market, where competitive yield calculations play an important role,” he said.

UCB Home Loans, which is now listed by the Council of Mortgage Lenders as one of the top ten buy-to-let lenders in the UK, has gained considerable momentum in this sector over recent years, with a string of proposition enhancements which recently included increasing the maximum number of properties allowed per borrower to from two to ten.

Fee changes

The lender’s annual review of fees sees three changes taking place on 22 February:

Self-cert arrangement fees increase from £495 to £595
Buy-to-let arrangement fees increase from £595 to £695
Valuation fees and homebuyer fees increase by £50

“We have only changed our buy-to-let arrangement fees once in the last ten years,” said Keith Astill.

“The changes we are now making to valuation and arrangement fees are in line with those at the more competitive end of the market and our strategy is to continue to offer one of the best deals available to customers where fees are concerned, coupled with attractive products,” he said.