Fair Rents (Scotland) Bill or Artificial state manipulation of free market rent?10:34 AM, 6th November 2020
About 4 weeks ago 36
Buy to let borrowers and property investors can choose from almost 300 mortgage packages – more than double the number available a year ago.
Competition between banks and building societies has hotted up as more lenders joined the market, and is set to intensify as more prepare to start lending in the coming months.
Skipton Building Society is already welcoming new business after an absence from buy to let lending, while the Yorkshire Building Society and Metro Bank are readying to lend.
Loan to value restrictions on lending are easing – with averages around 66% for buy to let and 63% for houses in multiple occupation (HMOs), according to a study by mortgage brokers Mortgages For Business.
Their figures also revealed average HMO yields are 9.3% compared to 8.7% at the end of 2010 and blocks of self-contained flats are returning 7.4% compared to 5.3% in 2010.
Other recent figures suggest buy to let mortgages make up around 69% of all specialist lending, and the largest buy to let lender last year was The Mortgage Works, a subsidiary of the nationwide, with loans totaling around 316.4 billion.
Latest buy to let mortgage packages include:
Leeds Building Society has launched a two-year discount deal at 4.44% up to 70% LTV with a £199 booking fee and an £800 completion fee.
New to the scene, Whitelaw Laidlaw Bank has buy to let and residential investment property deals available via selected intermediaries.
NatWest Intermediary Solutions has a new buy to let remortgage package of a 24-month fixed rate at 75% loan to value at 5.79% with a fee of £999. Valuation and basic legal fees are free.
Aldermore has increased the maximum number of properties on buy-to-let mortgage applications from two to three, subject to a total portfolio value of £1 million.
Applicants should own one buy-to-let. Rental coverage should be the higher of 125% at the product pay rate or reversion rate.
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