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Principality commits to ‘supporting UK landlords’ by increasing max loan size

Principality Building Society has reiterated its commitment to ‘supporting’ buy-to-let landlords looking to ‘extend and strengthen their investment portfolios’ by increasing its maximum buy-to-let and holiday let loan sizes.

Principality will now lend up to £750,000 at 60% loan-to-value (LTV), while landlords looking for up to £500,000 can borrow 75% LTV.

The lender has also increased the acceptable maximum age of applicants from 75 to 85 years old, while holiday let customers are now allowed to borrow on two properties rather than just one.


Emma Graham, national account manager at Principality Building Society, commented: “The enhancement to our criteria will allow us to continue to support clients who invest in property. We have also decided to lend on a second holiday let, which means we are offering an opportunity for clients to extend and strengthen their investment portfolios.

“With signs that more people are enjoying staycations, there is a growing need for suitable holiday properties across the UK, and our improvements reaffirm our commitment to supporting UK landlords.”

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    Haha....let me translate....
    We are not getting the loans we used to due to section 24, landlords are leaving the sector and selling up....
    We are loosing business and profits, so we are trying to broaden the loan book to make sure we can get as many loans and maintain profits...

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    • 08 March 2019 06:44 AM

    Yes one wonders whether the Govt eventually works out that fewer BTL mortgages equate to fewer corporate taxes!!!
    Probably far more corporate tax lost compared to S24 taxation gains.
    Then again with LL converting to corporate status; deleveraging or selling up there will be fewer S24 taxes coming into the Treasury.
    Who'd have thunk it eh!?
    So LL might consider converting BTL mortgages to FHL to avoid S24 which is what this lender has taken a punt on.
    After all the profits on lending for FHL are probably about the same as for normal resi BTL.
    It seems that many LL are taking a stand against S24 and diversifying.
    It is gratifying to see that certain Lenders have recognised these circumstances and are now coming up with offers to facilitate LL escaping to other forms or rental tenure.
    Obviously it is lender self interest that are causing them to adjust their relevant offers.
    But at least they are recognising it is pragmatic to adjust to the changing letting market mostly caused by S24.
    It could well be that lenders might be able to have such compelling offers for LL to changes tenure to FHL etc that such LL might with much lender assistance be able to escape S24.
    It is surely in the interests of Lenders to ensure their LL stay in the market.
    The last thing they want is LL paying off their mortgages.
    So converting a LL mortgage to a different type to keep the LL in a letting market of some sort must surely be in the lender's best interests.
    It is also bizarrely in the Govt's best interests as it will keep the corporate taxes going and taxes on LL profits but with no taxation on turnover.


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