Tag Archives: Kent Reliance

Kent Reliance Buy to Let no minimum income and 85%! Buy to Let News, Landlord News, Latest Articles

Kent Reliance Buy to Let have withdrawn their minimum income criteria of £25,000 even for 85% Loan to Value.

However this does not mean there is no criteria as a borrower would have to demonstrate a “reasonable” income and be able to prove it with payslips or 3 years accounts if self employed ie this is not non status.

It does mean that if an application stacks up on rental income and the borrower looks like they will be able to afford their ongoing commitments then Kent Reliance will consider the mortgage rather than just declining straight away as before if income was even £1 below 25,000.

To get figures and check how much you can borrow on Kent Reliance Buy to Let 85% LTV products you can use our Mortgage Calculator and quote engine.

Andrew Ferguson who is Head of Sales and Distribution for Kent Reliance, said “we have become increasingly confident in the BTL sector and having examined the way in which our book has performed, allied to the growing evidence of the strength of the rental market, we felt that insistence on a minimum income requirement was becoming less and less relevant as a measure of affordability. We shall however keep it under review.”

85% LTV Products:

  • 4.89% 2 year discounted variable rate, 2.5% Product fee and No Early Repayment Charges. Reverts to SVR currently 6.58% (ouch!)
  • 4.99% 2 year fixed, 2.5% Product fee and 4% year 1 and 3% year 2 Early repayment penalty. Reverts to SVR currently 6.58%.

The amount you can borrow on both of the above products is Stress Tested at 125% interest cover on a Notional rate of 5%. In short that means you can borrow 192 times the monthly rental income.

Lending Criteria:

  • Minimum Property value £75,000 or £250,00 for HMOs
  • No more than 20% exposure in any one block or development
  • Maximum of four properties on one Freehold
  • Studio Flats minimum of 30 square metres
  • HMOs maximum of 8 beds
  • Student properties maximum of 6 beds
  • Limited company applications accepted, but must be a Single Purpose Vehicle.
  • Flats above commercial will be considered except where above noisy, smelly or out of hours businesses.

If you require any assistance with a Buy to Let mortgage or any type of property finance just give us a call on 01603 489118 or email: info@property118.com if we can’t get to the phone straight away and we are always happy to help or know someone who can 🙂Kent Reliance Buy to Let


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 Let mortgage products and criteria – market update Buy to Let News, Latest Articles

After updating and writing the article on our Buy to Let mortgage sourcing system and calculator I thought I would give readers an update of what is still available and popular in the market.

You can find all these products on our system and get a quote (CLICK HERE), but many people ask me what has changed since they last took out a Buy to Let mortgage normally pre-credit crunch.

Loan to Value (LTV):

The industry standard maximum LTV is now 75% as opposed to 85% up to 2008.

You will find the cheapest rate products and and fees around the 60 – 65% LTV region with sub 3% short term rates or products with no arrangement fees and fees assisted such as Valuation and Legal cost.        Eg. 2.49% 2 year fixed with 2.5% fee

80% products will tend to have higher rates around the 5% point, with increased arrangement fees and stress testing to cover the perceived increase in risk compared to lower LTV products. A popular market provider of 80% LTV products is The Mortgage Works with rates starting from 4.14% 2 year fixed with a 2.5% arrangement fee to 5.29% with a £995 fee.

85% is still available with Kent Reliance but at a cost to rates fees and criteria – 4.99% 2 year fixed product fee 2.5% and reversion rate after initial term 6.58% SVR (ouch). Minimum property value £75,000 and £25,000 applicant earned income with proof.

Stress Testing:

How much you can borrow based on the rental income aka Stress Testing has actually changed very little over the years since 2008.  With reduced Loan to Values, lower property prices and increased rental income the amount you can borrow based on rent is not normally an issue unless the property is particularly poor yielding or the Loan to Value is high with a high stress testing.

The average stress testing figure is based around 5% notional rate and covering the interest by 125%. This in plain English equates to being able to borrow 192 times the monthly rental income. However at lower LTVs and interest rates this could be as much as 300 times or as little as 154 times for 80% products.

Criteria:

You can still borrow on Buy to Let mortgages for non standard properties such as HMO’s, new build flats, Multi-Unit, flats above none smelly or noisy commercial, however you have to be prepared depending on lender and the property for a lower LTV, higher interest rate and higher stress testing to cover the lenders perceived risk again.

Borrowing on Buy to Let mortgages in the name of a Limted company is still possible with Lenders such as Keystone, but it is preferred to be a Single purpose Vehicle rather than a Trading Ltd company and the options are vastly reduced. Therefore the tax advantages of purchasing using a Limited company can often be negated by difficulty and cost in finding finance.

Example Products:

Some other products not mentioned that I noted when updating the system as potentially stand out were:

3.99% 2 year Tracker Libor Tracker No Fee and Free Valuation 75% LTV

4.98% 5 year fixed £1,999 fee 80% LTV

3.49% Flexx variable mortgage for the term Fees £999 with no early repayment charge and free remortgage service and Valuation 65% LTV

4.74% Standard variable for the term No fees No early redemption penalty free valuation 65% LTV

2.99% 2 year fixed 2.5% fee 75% LTV

To Search for all the products on our own in house Buy to Let mortgage sourcing system and calculator please CLICK HERE

For any assistance you may need with a Buy to Let mortgage please email info@property118.com

Tel: 01603 489118Buy to Let Mortgage system

 


Latest Newsletter dated 22nd February 2013 Landlord News, Latest Articles, Property News, UK Property Forum for Buy to Let Landlords

NEWS from Paragon Mortgages for Professional LandlordsThis week 29 pages have been added to Property118.

(Links to the relevant pages are in blue and underlined).

5 Readers Questions Articles and Discussions

  • I think my tenants removal company knocked my garden wall down
  • Legal advice required on Scottish HMO issue
  • Shared ownership – can this be done on leasehold flat?
  • Should I sell tenanted or serve notice and sell with vacant possession?
  • Parting company with my letting agent

3 New Auction Catalogues for you to download

  • Network Auctions 6th March 2013 – Glaziers Hall, London SE1 9DD Commencing: 1pm
  • Pearsons Property Auction 5th March 2013 – 11am Hambledon Suite, The Solent Hotel, Fareham, PO15 7AJ
  • Salter McGuiness Property Auction 5th March 2013 – 1.30pm Quality Hotel, Empire Way, Wembley, HA9 0NH

11 New Articles containing News and Reviews:

To keep you up to date and help you to save money, minimise risks and maximise returns

Some good News for Landlords in Scotland at last

I keep in touch with what’s going on in the lives of my fellow landlords North of the border via my friends at the Scottish Association of Landlords…

Kent Reliance release new buy to let range for portfolio landlords

Buy-to-let products with no restriction on the size of the landlord’s portfolio. They are available for loans of up to £1m at 85% LTV, and at 75% TV for loans over £1m.

Property Portfolio Review Spreadsheet – FREE Download

This property portfolio review spreadsheet calculates your rental yields net of voids, the interest rate which will make your portfolio cash neutral and the true costs of rental void periods

Suffolk Holiday Homes on sale at bargain prices

You could own one of these 3 bed, brick built, double glazed Suffolk Holiday Homes for personal use or as an investment for just £55,995. That’s not the deposit, it’s the cash price!

A Landlords Mid Life Crisis

OMG, what have I done to this poor landlord! I wrote an article a while back called 10 things landlords must do before it is too late.

Tenants in Scotland missing vital deposit protection information

Tenants in Scotland could be missing vital information which can affect the return of their deposits at the end of the tenancy.

LANDLORDS – don’t let tenants steal your property

Is it even possible that tenants could steal a property you might ask! As part of its campaign to stamp out property fraud, the Land Registry has just set up a dedicated phone line.

Oxford – Not Hot But Always Warm!

I am often asked why Oxford represents such an attractive option for buy to let property investors.

Wealth Tax proposed by Lib Dems could affect Landlords

One of the best forum posts I’ve ever seen on the topic of economics and  the proposed new Wealth Tax.

Sprightly start to 2013 but ‘old hands’ support the market

Rightmove have just released their February 2013 House Price Index which shows a “Sprightly start to 2013”

Residential Property Inventory Services In A Nutshell

What is an Inventory? To sum it up in simple terms, an inventory is a detailed list using specific phrases to describe the features, items and condition of a property.

Good Landlords Campaign Click Here to see Sponsors

We would like to welcome the following new sponsors of the Good Landlords Campaign

  • Peter Harris of Bristol

  • Anthony Altman of Platinum Property Sheffield
  • Brian Turner of SCPR Sheffield
  • Dave Gardner of Top Management Wellingborough

  • Matthew Farrow of Phoenix Independent Advisers Cromer

  • Richard Baker – Northampton and Rugby
  • Oliver Cornes of Juicy Property London

  • Bill Cooper of WDC Rentals Ewloe

  • Glyn Jones of GPJ Ltd Stockton on Tees

  • Ramesh Pindoria of Regal Estates Willesden

Don’t miss this opportunity …….

Don’t miss this opportunity …….

The closing date to become a founder member of The GOOD Landlords Campaign is fast approaching. It doesn’t matter whether you have one property or you are a full time landlord, we welcome anybody who believes in sharing best practice in the UK Private Rented Sector. That includes letting agents and other associated property professionals…


Kent Reliance release new buy to let range for portfolio landlords Buy to Let News, Landlord News, Latest Articles, Mortgage News, Property Investment News, Property News

Kent Reliance release new buy to let range for portfolio landlordsKent Reliance has launched a series of buy-to-let products which place no restriction on the size of the landlord’s portfolio.

They are available for loans of up to £1m at 85% LTV, and at 75% TV for loans over £1m. Rates at 75% start at 4.49% for a two-year fix. A product fee is charged at 2% of the loan amount, plus an application fee of £130.

Kent Reliance only offer their products via a controlled sales distribution. Our recommended brokers have access to these products should you want to use them or just get a quote. Please complete the form below for an introduction

Contact Howard Reuben

Mortgages, Commercial and Bridging Finance, Life Insurance, Wills, Trusts and LPA's
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BuytoLet news round up Landlord News, Latest Articles, Property News

Despite the economic uncertainty surrounding Europe BuytoLet products have remained very stable in terms of pricing to the consumer. It will be interesting to see if the Bank of England’s offer of £80 billion in cheap long term loans to the UK banking system specifically for the purpose of increasing lending will have a positive effect on BuytoLet availability and cost.

After the recent LIBOR (London Inter Bank Offered Rate) fixing scandal it is good to see this rate being reduced for buytolet borrowers. Mortgage Trust part of the Paragon group have reduced their LIBOR from 1.1% to 0.9% and Keystone mortgages who specialise in limited company, multi-let and HMO applications have reduced their LIBOR from 1.1% to 1.05% Continue reading BuytoLet news round up


85% Buy to Let is back with Kent Reliance Buy to Let News, Landlord News, Latest Articles, Property News, Property118 News

85% loan to value borrowing is back with Kent Reliance Launching two new mortgage products.

These are both variable rates at 5.49% for the two year, and 5.69% for the three year discounted rate. The ability to borrow 85% of the value or purchase price of a buy to let property has been a milestone ever since the credit crisis, and indicates some recovery back to the “good old days”. Continue reading 85% Buy to Let is back with Kent Reliance


Buy to Let market update Latest Articles

A new buy to let lender has entered the market called Keystone

They specialise in buy to let mortgages for Single Purpose Vehicle limited companies, HMOs and Multi-Unit properties. This part of the market was largely exited by lenders after the credit crunch and it is great to see some competition for more niche criteria giving Landlords a greater range of options. Continue reading Buy to Let market update


Who updates the buy to let mortgage calculator? Buy to Let News, Financial Advice, Latest Articles, Mortgage News, Property Investment News, Property Investment Strategies, Property Market News

Hi it’s me for my sins

I started my career in banking in 1990 (when I was 8!) and on to the mortgage desk in the pre regulation days. Then on to a Building Society to become a branch and business development manager, and that’s where I came across a specialist Buy to Let brokerage called The Money Centre. At the time The Money Centre was one of the fastest growing businesses in the country and I likened it affectionately to a Black Hole eventually getting sucked in and becoming an Associate Partner. I then went on to be Head of Operations taking in training, quality control, project management and compliance along the way before making myself redundant and becoming a partner in Property118. Continue reading Who updates the buy to let mortgage calculator?


Eastern Landlords Association MARCH 2012 NEWSLETTER Eastern Landlords Newsletter, UK Property Forum for Buy to Let Landlords

Deposits

Three cheers for competition. A few weeks ago TDS, The Dispute Service, announced Deposit Guard, which at launch undercut the costs charged by My Deposits, and made a push for self-managing landlords, rather than agents. My Deposits have retaliated, by reducing their fees for agents, but not landlords. This may follow, and we shall keep members informed. The third, custodial scheme, used by many, as a free scheme is not affected.
Continue reading Eastern Landlords Association MARCH 2012 NEWSLETTER


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