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Buy to Let Mortgage products and market update – essential reading Buy to Let News, Landlord News, Latest Articles

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

Buy to Rent Latest Articles

I was recently asked about buy to rent and having thought about the conversation afterwards I was amazed at how indoctrinated into the jargon of the financial industry I have become. This was to the caller a simple mix of perfectly reasonable English e.g. I want to buy a property and rent it out. Buy to rent is just as much a perfectly reasonable a name as buy to let, but we have so much jargon in the industry it is easy to misunderstand someone and go off at a tangent.

Buy to rent could be confused with Rent to buy, however the latter is a scheme designed for tenants to rent a property with the intention of buying, whereas a buy to rent landlord may have no intention whatsoever of selling a property to his tenant. Continue reading Buy to Rent

Buy to Let Purchasing Tips & Calculators Latest Articles

Do you know how to decide what the best properties will be to invest into in your area?

In the short video below I provide general guidance on where to source information and how to crunch the numbers.

If you need a buy to let calculator that’s simple to use, factors in all the costs, tells you the interest rates you will break even at and doesn’t try to sell you a mortgage then you’re in the right place. What’s more, these are free to use. Continue reading Buy to Let Purchasing Tips & Calculators

Private Landlords Wary of Rate Rises Buy to Let News, Latest Articles, Mortgage News, Property Investment News

"A buy to let interest rate rise could be catastrophic for some"

Official bank rates will stay at 0.5% after the Bank of England’s monetary policy committee voted for no change for a record 29th month in a row.

They also agreed to keep quantitive easing at £200 billion.

Buy to let landlords are concerned that mortgage interest rate rises could drive them out of business, according to new research.

Around nine out of 10 of landlords feel a 2% mortgage interest rate rise would have a severe impact on the profitability of their property portfolios – with more than half (53%) confessing the rate increase would affect them ‘significantly’.

In fact the financial repercussions of paying more mortgage interest would force 8% to reconsider whether they could remain as property investors, while 6% would have to consider selling up, according to the findings of a survey by the National Landlords Association (NLA).

A rate hike of 1% on buy to let mortgages would still have a severe impact on 80% of landlords – with nearly a third (29%) expecting ‘significant’ financial problems to follow.

Know where you stand – check out our Number Crunchers to calculate the break even interest rate on your portfolio.

Around three quarters of the landlords taking part in the poll  (73%) had one or more buy to let loans, and 47% of them had five or more property investment mortgages.

Just under half of landlords (49%) strongly agree that the market would further benefit from more buy to let lenders and greater competition.

David Salusbury, NLA chairman, said: “These statistics show how important it is for a landlord expanding their portfolio to construct a sound long-term business plan when considering buy-to-let properties.

“The NLA believes that such properties can be a worthwhile investment and can help ease the current housing crisis by providing a source of much-needed housing, but landlords should ensure that they plan for the future and are mindful of any potential increases in buy-to-let interest rates.”

Meanwhile, more than half of mortgage brokers do not expect the bank rate to rise until some time in the new year, according to the findings of a poll by mortgage lender Kensington.

The survey showed 53% believe rates will start to rise in the first half of 2012, while one in four predict they will go up later this year.

Around 13% state rates will not rise until the second half of 2012, while 7% expect the rate to stay at 0.5% until 2013.

Charles Morley, head of sales at Kensington: “While our research is not unanimous, there is a clear feeling that base rate is unlikely to rise before 2012. “

Property Investment Calculators Latest Articles

House on CalculatorUse our Property Investment Calculators to work out your yields, returns on capital invested and to analyse your break-even point based on various interest rates? These FREE TO USE Number Cruncher tools allow our Members to complete these calculations in just a couple of minutes. You don’t need a degree in mathematics to use them either. Property is a numbers business so it’s vital to get your math’s right in order to find the right risk/reward balance for you.

You will need to register as a Member to use these Number Crunchers but Membership is free and the registration process only takes a couple of minutes to complete. Continue reading Property Investment Calculators

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