Tag Archives: Loan to Value

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


The 2013 Budget and how it affects Landlords and property Investors Landlord News, Latest Articles, Property News

Budget 2013The 2013 Budget is hoped to boost the housing market and construction industry. Yesterday Chancellor George Osborne announced new plans to help people buy their first homes homes with the Help To Buy Scheme and an extension of the previous NewBuy Guarantee scheme to include older houses as well as new-builds.

For three years from the start of 2014 the government will support £130bn of first time buyer mortgages by guaranteeing 15% of the loan leaving borrowers at risk of losing only their 5% deposit and lenders liable for only 80% of the purchase price.

Lenders taking part should therefore be happier to accept smaller deposits as security for loans, but it is still a relatively small proportion of the total mortgage market worth £1.2 trillion, according to the Council of Mortgage Lenders (CML).

The theory is that giving more people the ability to purchase a home will increase demand for property resulting in an increase in price and promoting an increase in supply (more construction) to fill the demand. It is very simple Supply and Demand economics that will work, but it is the amount that it works by that is the question.

Of all the sectors that contribute to the UK’s GDP it is the construction industry that has been most badly affected helping to drag us back into a double dip recession and a stagnating economy, so it makes sense for the government to try and stimulate demand for construction.

The Housing Market is also a very important barometer for confidence in the economy and when people feel confident they spend money and invest in business which includes Landlords.

Any kind of confidence boost in the housing market has got to be a good thing for Landlords and property investors in the long run. If the value of property strengthens then lenders will feel more confident to lend on better rates and Loan to Values. Landlords may eventually be able to remortgage again after the death of the remortgage market for the last four years. We will no longer be stuck locked into existing lenders and at the mercy of their desire to either get rid of Buy to Let mortgages or fleece Landlords for greater profit margins as the Bank of Ireland are trying to do.

A competitive Buy to Let market is essential for the long term planning of Landlords taking control back from the banks and into the hands of investors once again.

However we cannot get too excited as it all depends on the degree by which government support works that is all important, and with the revision of GDP growth forecasts halved it would indicate that there is a long road to recovery to travel yet.


Is rent hiking a good business model? Don't Shoot The Messenger, Landlord News, Latest Articles, Property News, UK Property Forum for Buy to Let Landlords

Is rent hiking a good business modelIt’s been a while since I wrote anything in my ‘Don’t shoot the messenger’ series. Mainly because I kept getting shot ha-ha.

But I have a tough skin.

This article is an open letter to all you P118 landlords but probably more the London crew, because it is about rent increases and London is a different animal to the rest of the UK. I see properties for rent in different parts of Britain where the rents seem reasonable.

London is off the scale though. Continue reading Is rent hiking a good business model?


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


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


Couples In Property Limbo HMO's & Student Lets, Landlord News, Latest Articles, Property News

Couples in property limbo are living in Flatshares with no way onto the property ladder.

  • 44% of couples living in flatshares say their living situation is affecting future plans to start families
  • 14% of couples in flatshares say they will never be able to afford to buy property
  • 35% of couples say the biggest challenge is finding flatshares that will accept couples
  • 13% of couples say they won’t even be able to afford to rent on their own Continue reading Couples In Property Limbo

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


Principality BuytoLet rates revised downwards Landlord News, Latest Articles, Property News

Principality BuytoLet rates have been revised downwards by 0.2% and introduced two new products all with low fixed fees down to a minimum of £99

These are two year variable rate products for the Building Society with the biggest advantage being the low set up costs for higher value properties instead of large percentage fees based on the amount of the loan. Product details in descending order of Loan to Value are: Continue reading Principality BuytoLet rates revised downwards


25 Year fixed rate BuytoLet Mortgage Buy to Let News, Landlord News, Latest Articles, Mortgage News, Press, Property Investment News, Property Investment Strategies, Property Market News, Property News

The Manchester Building Society has launched two new 25 year fixed rate BuyToLet mortgage products with a 5.74%  and 5.99% notional rate.

In the years I have been working in this industry and certainly since the popular advent of BuytoLet I have never before seen a 25 year fixed rate BuytoLet mortgage. The longest term I can remember is a 10 year fixed. This is certainly very surprising and confidence boosting considering the current economic climate and I have detailed the full costs and criteria below. Continue reading 25 Year fixed rate BuytoLet Mortgage


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