Buy to Let Mortgage products and market update – essential reading

Buy to Let Mortgage products and market update – essential reading

13:46 PM, 29th October 2013, About 8 years ago 17

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Having just updated the Buy to Let mortgage products on our own in house Buy to Let Mortgage sourcing system and calculator I thought I would give you a summary of what’s Hot or Not in the current market.

Virgin Money have been added to the system because of their helpful attitude and criteria which includes:

  • Day one remortgages – So no need to wait 6 months to remortgage for cash purchases, refurbs, Auction purchases etc
  • First Time Buyers
  • Regulated Buy to Let

However Maximum LTV is 70%. Stand out different product is a 5 year fixed at 4.09% with £750 Cash Back and 2.5% product fee (better for smaller loan sizes where looking to fix costs long term is important.

The Mortgage Works (TMW) always been and old favorite of mine going back to 2003 have a selection of 80% LTV products and no income requirement for existing landlords.

Interestingly they have no longer term products currently above an initial 2 year deal. This will either be because they have purchased no long term funds or are uncertain of market direction at the moment. Example products range from:

  • 2.49% two year fixed with 2.5% arrangement fee at 60% LTV (really only a headline grabber) to
  • 4.14% 2 year fixed 2.5% fee at 80% LTV (one of the lower interest rate high LTV products)

BM Solutions were the old industry go to lender until introducing a maximum exposure of 3 mortgages, but still have one of the most comprehensive range of products up to 75% LTV.  They are also often helpful for flats above or adjacent to commercial premises.

  • 3.19% 2 year tracker £1295 fee 60% LTV
  • 3.89% 2 year tracker 0.5% fee 75% LTV
  • 4.34% 3 year fixed 1% fee 75% LTV
  • 4.99% 5 year fixed 1.25% fee 75% LTV

BM Solutions have NO customer service staff so any mortgages or further advances even must be done by a broker.

Kent Reliance are really mostly famous for being THE 85% LTV lender.

However minimum property value £75,000, proof of £25,000 income required stress tested at 192 times monthly rental income.

  • 4.99% 2 year fixed 2.5% fee 85% LTV reversion rate 6.58%
  • 4.89% 2 year discount 2.5% fee 85% LTV reversion rate 6.58%

Aldermore have a good range of 80% LTV products at 4.98% including 2, 3 and 5 year fixed and a varibale rate for the term. They will do day 1 remortgages for properties bought with a bridging loan on a like for like basis and inherited properties.

They will also consider customer with light adverse credit which very few lenders will allow including:

  • 1 or 2 missed mortgage payments over 12 months
  • CCJs and Defaults registered over 3 years ago
  • Missed unsecured credit payments such as credit cards, mobile phone, loans et

Principality have a penalty free no tie in 2 year discount product at 3.39% with only a 1% + £99 fee at 60% LTV.

Also interestingly they will consider Holiday Homes on their BTL range!

Godiva owned by the Coventry building society are the “Does what it says on the tin lender” I liken them to the Yorkshire tea, or a sliced white loaf of a the buy to let product market. Nothing spectacular just a good solid no frills value for money products.

  • 3.49% variable penalty free for the term of the loan, £999 fee max 65% LTV (very good value with flexibility)
  • 3.79% 2 year fixed, £500 fee max 65% LTV
  • 4.74% Standard variable penalty free no fee max 65% LTV

Cost and product wise the market has been reasonably stable with small improvements adding up each month giving a healthier range of options available especially in niche areas such as:

Terms beyond retirement age, Bridge to Let, Remortgages inside 6 months, Ltd company applications, Higher LTV, Lower fees, Light adverse, Holiday let and more.

All of the above products, lenders and many more can be found by using our Buy to Let calculator and quote engine Please Click Here

If you need any assistance with a Buy to Let mortgage you can also:

Email: info@property118.com or

Telephone: 01603 489 1182013



Comments

by James Noble

16:13 PM, 2nd November 2013, About 8 years ago

Thanks Neil, I'll get back to you on Monday.

by Daniel Chow

18:23 PM, 14th November 2013, About 8 years ago

Hi guys, just stumbled on the site by chance after searching on google. Was wondering if anyone knows of a mortgage company that could offer me a btl mortgage in the following circumstances:

Property value - £23000
Deposit - £4000
Income is roughly £15k a year.

At the moment the low valuation seems to be the main reason I haven't found a lender. Any help appreciated.

by Mark Alexander

18:36 PM, 14th November 2013, About 8 years ago

Reply to the comment left by "Daniel Chow" at "14/11/2013 - 18:23":

Hi Daniel

Take a look at this thread >>> http://www.property118.com/buy-to-let-mortgages-on-low-value-properties/41785/
.

by Daniel Chow

18:45 PM, 14th November 2013, About 8 years ago

Hi Mark, many thanks. Will contact him to see what he can offer.

by Simone Gilks (Mortgage Adviser)

10:12 AM, 15th November 2013, About 8 years ago

James - Given that you have already been given the heads up on the various mortgages available to you, you may wish to approach a lender yourself but I must highlight the fact that a decent broker who understands commercial as well as the BTL market will know where to look for such a deal.

Banks still take a very cautious approach to ''Alternative Lending'', yet there are still streams of lenders who are keen to remain within this market place.

One question - are you an experienced Landlord?

Applying for a mortgage of this nature can be slightly daunting but this is something I do every day, so if you need any help check out my members profile.

by James Noble

19:01 PM, 15th November 2013, About 8 years ago

Hello Simone, Yes, I like to think of myself as an experienced Landlord, about 18 years in the business. I have to say, it's no easy job gaining a mortgage these days. The 'underwriters' (whoever they may be) need more and more detail,and more and more guarantees in place, including a separate income of over £25,000. I wonder why you are not allowed to include your rental income? One application, from a High Street bank, has been in the system for a month- no reponse yet. The other is via a broker, but still requires me to be a cast iron customer. At this rate, I might get back to you...

by Simone Gilks (Mortgage Adviser)

18:08 PM, 17th November 2013, About 8 years ago

Reply to the comment left by "James Noble" at "15/11/2013 - 19:01":

James - given that there are sill lenders who do not require a set income, nor do they require you to be employed it may well be that you are not receiving the correct advice, though its not for me to say without knowing your circumstances in more detail.

Banks still like to have full control over their clients financial affairs yet they lack the understanding of the needs of Landlords, such as your good self. See how you get on.

What I can say is that on Friday I found a mortgage product for my client whose only income is that derived from rental, like most of my clients he an experienced landlord.

See how you get on.....


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