Lenders push up rates; restrict application volume

A number of lenders have announced increases to their product ranges after the base rate was cut to 0.1 per cent last week .
Foundation Home Loans, which offers both buy-to-let and residential mortgages will increase rates on all products within these two categories by 0.30 per cent.
Specifically, in its BTL range it will be withdrawing its remortgage special product and all of its low loan products.
In its residential range the lender is withdrawing its fee-assisted range and pulling back free valuations.
Zephyr Homeloans is following suit, putting the initial rate on all of its products up by 0.30 per cent and changing the reversion rate to Libor + 5 per cent. It has also set its maximum LTV at 75 per cent and brought the maximum loan size for all products to £1m.
Keystone Property Finance, meanwhile, has announced that it will be increasing rates by 0.25 per cent across its standard and specialist product ranges.
Kensington Mortgages is also making changes. It is taking its Options range of the market and changing the maximum loan amount to £750,000 across its Select and Large Loan ranges, and up to 85 per cent LTV, providing the same maximum loan amount. For up to 80 per cent LTV, the maximum loan amount is now £500,000.
It is also withdrawing its 80 per cent LTV BTL products and setting the maximum loan amount to £500,000.
As well as this, Barclays has announced that the closure of two of its underwriting sties along with a high volume of applications has “resulted in a reduction in our overall capacity.”
As a consequence, mortgage application volume will be restricted, with the lender’s capacity refreshed every day at 10am. Once the daily limit has been reached, the broker will have to wait and try again the next day.
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