10:16 AM, 9th September 2011, About 11 years ago
Surging buy to let mortgage applications have boosted mortgage valuations to record summer levels, according to surveyors.
Property valuations for landlords were up 85 per cent in August on figures of 12 months ago, according to Connells Survey and Valuation.
The total number of valuations in August was just 4 per cent lower than July, but the number of valuations grew by 49 per cent year on year.
“We’ve had our strongest August since 2007 and the expected August dip hasn’t really materialised. Valuation activity was 96 per cent of the level in July, and with the summer holidays coming to a close, we expect it to pick up pace as September progresses.” said John Bagshaw, corporate services director of Connells Survey and Valuation.
“Against an uncertain economic backdrop, we don’t foresee a sustained surge in the mortgage market or housing market, but there are signs that transaction and remortgaging activity is beginning to improve.”
Meanwhile, buy to let lenders are launching new products and tweaking their business terms to encourage more business.
Skipton Building Society has launched a new five-year fixed-rate investment mortgage for loans of up to 70 per cent of a property value up to a maximum £500,000 borrowing.
Rates are fixed at 4.89 per cent, with a two per cent completion fee.
Kris Brewster, head of products at Skipton, said: “Swap rates remain unusually low and this is allowing us to offer the kind of longer term fixed buy-to-let rate that would have been almost unheard of in the past.
“This is a good opportunity for landlords who intend to keep their properties for the long term and prefer the certainty of knowing what their payments are going to be over an extended period.”
Aldermore Bank has increased loan sizes for buy to lets to £1 million and scrapped the minimum income condition. The maximum age for borrowers is also upped to 85 years old and the bank welcomes applications from first time landlords for the first time.