Tag Archives: mortgage lenders

FSA Propose New Mortgage Lending Restrictions Buy to Let News, Latest Articles

Tough new mortgage restrictions to stop borrowers falling in to arrears have been proposed by the Financial Services Authority after months of behind-closed-doors negotiation with lenders.

Out go self-certification and interest-only home loans for most mortgage borrowers.

In come strict affordability tests to combat payment difficulties and mortgage fraud for borrowers – with lenders having to prove borrowers could afford their repayments before taking any action to seek arrears or repossession. Continue reading FSA Propose New Mortgage Lending Restrictions

New Tracker Lender for Buy to Let Buy to Let News, Latest Articles, Property Investment News, Property Market News

Street with 'To Let' signs outside most houses
“State Bank of India set to enter the buy to let market”

A new buy to let mortgage lender is about to enter the market with broker-only deals.

The State Bank of India (SBI) has announced preparations to offer a 60% loan-to-value (LTV) tracker at 3.9%.

The first applications will be handled in branches and then opened to brokers and independent financial advisers.

The bank is accepting deals for loans between £50,000 and £1.5 million, and charges a £150 booking fee and £1,990 closing fee. No early redemption payments are charged.

SBI has 10 branches, mainly in and around London.

Leeds Building Society has launched a new five year 4.99% fixed rate buy to let mortgage at 70% LTV.

The closing fee is £1,299 and the lender allows borrowers make 10% capital repayments a year without penalty.

Borrowers are also being offered a free valuation and a legal service for remortgages in a bid to tempt them in.

Meanwhile, Kensington has pulled all 85% LTV buy to let mortgages; Skipton Building Society has raised the tracker rates from 3.24% to 3.59% and Aldermore Bank has stopped offering fixed rate deals.

Replacement deals are at more expensive interest rates or charge more fees.

Despite a flurry of activity among lenders, the market is still dominated by the big two – BM Solutions, owned by the Lloyds Banking Group, and The Mortgage Works (TMW), a Nationwide Building Society subsidiary

These landlord lenders have around a 90% share of the market.

The buy to let market has around 30 bank, building society and finance house lenders offering about 2,600 different loan deals at an average 23% loan-to-value.

Santander is the latest big name lender considering entering the property investment market. A spokesman has confirmed the bank is ‘considering’ buy to let loans to non-professional landlords.

What happens next to house prices and mortgages? Latest Articles, Mortgage News

House built up with jigsaw piecesSo the property market is stuck in a rut and prices and mortgage lending bottom out, according to the latest surveys.

Looking at the housing market from a seller’s point of view, fewer houses are taking longer to sell mainly because mortgage lenders are keeping their cash. Continue reading What happens next to house prices and mortgages?

Flatlining property market is as good as it gets Latest Articles, Mortgage News, Property Market News

Flatline imageThe mortgage business is flatlining as buyers, sellers and lenders wait for the property market to jump start.

The latest property market statistics show fewer buyers are in the market and this is affecting sales and mortgage advances. Continue reading Flatlining property market is as good as it gets

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