Tag Archives: buytolet

Switch to a BuytoLet mortgage within six months of purchase Commercial Finance, Landlord News, Latest Articles, Property News

New commercial finance facilities are offering the option to switch bridging finance to a  BuytoLet mortgage within the normal 6 months period other lenders require you to wait.

Borrowers are now able to bridge  70% of initial purchase price and then, within six months, switch to a BuytoLet remortgage based on 70% of the ” new, higher valuation figure.

The best available product is 0.69% per month for the bridging finance and then 4.7% plus Libor for the Buy to Let term facility.

 

Continue reading Switch to a BuytoLet mortgage within six months of purchase


BuytoLet Lender BM Solutions allows Student and Benefits tenants Buy to Let News, Landlord News, Latest Articles, Property News

BMSBM Solutions relaxes its BuytoLet lending criteria to allow landlords to rent to students and benefit claimants

It was recently reported that BM Solutions was looking at changes to its BuytoLet underwriting criteria and the rumors were that they would be looking to remove its £25,000 minimum income requirement.

The initial reaction by some market commentators was that to remove the £25k minimum income would lead to the door being opened to low income households who are more at risk of defaulting, albeit that it could open the door to buyers outside of London, and would be of particular help for self-employed clients.

Another rumored criteria change was regarding the Lloyds restriction on its BuytoLet criteria which only allows a maximum of three buy-to-let properties per customer, across the whole of the Lloyds Banking Group (which now includes major lending brands such as BM Solutions, Halifax, C&G).

So, what has changed? How have BM Solutions relaxed their criteria? Previously, the lender’s list of exclusions included student lets, tenants claiming housing benefit, rent rebates or rent allowance, asylum seekers and tenants benefiting from diplomatic immunity.

With immediate effect BM Solutions has now adjusted its criteria to allow BuytoLet landlords to rent properties to students and benefit claimants. They are also now willing to offer loans on properties with a maximum of five occupants, a stipulation attached to all properties, although BM Solutions has never lent on House of Multiple Occupation, where tenants sign individual tenancy agreements and this still hasn’t changed.

This news comes just over a week after The Mortgage Works has also in dropped its restriction on lending to landlords with tenants who are on housing benefits.

Other lenders which will lend to landlords with student tenants include The Mortgage Works, Godiva, Abbey for Intermediaries, Woolwich, Aldermore and Virgin Money.

Howard Reuben, Principal of H D Consultants says that these most recent criteria changes are testimony that Lloyds is pursuing more business. He says “This criteria update appears to back up the news that BM Solutions is looking increase business via criteria rather than chasing the rate. This is a controlled measure which will provide some relief to a number of landlords”

From 19th March, BM Solutions has announced new semi-exclusive products starting at 3.89% up to 75% LTV available for purchase and remortgage, and which also benefits from a £500 cashback too.

To discuss any Buy-to-Let deal with our preferred broker please call us on 01603 489118 or email info@property118.com

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Buy to let auction property finance calculator


BuytoLet Mortgage Calculator Update Buy to Let News, Landlord News, Latest Articles, Property News

The BuytoLet Mortgage Calculator has recently had every product and lender listed checked and updated. From my observations doing this on a regular basis I can tell which direction the BuytoLet mortgage market is heading in.

As an overview of the last 3 months Variable and Tracker rate mortgages available seem to have decreased in rate on average by 0.2%. Fixed rates are now being listed at similar levels, but with a reduction in arrangement fees by as much as 1%. Continue reading BuytoLet Mortgage Calculator Update


Property Tax Question – CGT roll-over relief Landlord News, Latest Articles, Property Development, Property Investment Strategies, Property News, Tax & Accountancy, Tax and Accountancy

I have just received a property tax question from a lady called Barbara which I’m not sure of the answer. Therefore, I am publishing her email as an article to seek the opinion of other readers. I have also invited my accountants to comment too as I suspect there may be a way for Barbara and her husband to achieve CGT roll-over relief by creating a limited company for the purpose of property development (refurbishment and sell on) given their slightly unusual circumstances.

Barbara’s question relates to CGT roll-over relief and reads as follows:- Continue reading Property Tax Question – CGT roll-over relief


BuytoLet Loan Directory Commercial Finance, Landlord News, Latest Articles, Property News

The BuytoLet Loan Directory is the fourth feature publishing competitive and innovative product offerings to help clients identify appropriate funding facilities.

In this publication we provide a selection showing the most competitive and commonly used rates on offer depending on the Loan to Value or deposit available in respect of BuytoLet Mortgages. Continue reading BuytoLet Loan Directory


Funding for Lending Commercial Finance, Landlord News, Latest Articles, Property Development, Property News

As part of the government’s initiative to support Small and Medium sized enterprises, a number of lenders have signed up to the Funding for Lending scheme run by The Bank of England to provide subsidised commercial borrowing facilities.

At current borrowing levels the participating banks would have access to £60billion of funding. Whilst this is not geared to replace off the shelf BuytoLet mortgage products it could very well assist with commercial mortgage finance and development loan finance. This initiative is to assist businesses with the following advantages in the terms and costs of loans available in the market. Headline details are shown below: Continue reading Funding for Lending


Northern Rock BuytoLet Useful Criteria Buy to Let News, Landlord News, Latest Articles, Property News

Northern Rock BuytoLet who are part of Virgin Money have confirmed they will consider “Day One” remortgages otherwise known as “Back-to-Back” and Regulated BuytoLets for the use of close family members.

This is a very niche area for Lenders with only Mortgage Trust as the other company able to consider remortgages inside six months of the purchase date when significant works have been carried out and BM Solutions who will consider Regulated BuytoLet applications. Continue reading Northern Rock BuytoLet Useful Criteria


Godiva BuytoLet save £2499 on the same rate! Buy to Let News, Landlord News, Latest Articles, Property News

Godiva BuytoLet, owned by the Coventry Building Society, have further tweaked their Flexible variable and Flexible fixed products by keeping the interest rate charged the same and removing the fixed arrangement fees.

This is a whole of term flexible BuytoLet product with no early repayment charge and no need to remortgage after a prescribed time thus saving remortgage costs as well as the £2499 arrangement fee. The other product is a Flexible fixed for 2 years with no early repayment charge and no arrangement fee saving £749. Details and Criteria below: Continue reading Godiva BuytoLet save £2499 on the same rate!


The Mortgage Works BuytoLet major criteria and product changes Landlord News, Latest Articles, Property News

The Mortgage Works BuytoLet team have made major changes to their criteria and products focusing on First Time Landlords, Let to Buy, Purchasing from a family member and withdrawing from the regulated BuytoLet market.

This is significant for the whole of the BuytoLet market as The Mortgage Works have a very large market share of new business due to its popular, products, criteria and 80% Loan to Value range. All the changes detailed below are now in force for new applications. Continue reading The Mortgage Works BuytoLet major criteria and product changes


Leeds Building Society BuytoLet two and three year products discounted Landlord News, Latest Articles, Property News

Leeds Building Society BuytoLet department have discounted their two and three year products whilst keeping their 5 year deals at the same level.

These are 65 and 70% Loan to value products with an attractive initial rate and good value fixed fees of £999 that really do benefit the larger loan over percentage based fees. This proves there is still value to be found in the market provided there is a sufficient level of equity in a property to reduce a lenders perceived risk. Product details can be seen below:

Continue reading Leeds Building Society BuytoLet two and three year products discounted


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