Tag Archives: Mortgage News

1 in 5 Mortgage Applications are for Buy to Let Buy to Let News, Latest Articles, Mortgage News, Property Market News

Buy to let mortgage applications make up one in five of all home loan applications, according to one of the UK’s largest estate agents.

Haart also claims buy to let remortgage applications reached a new high for the year, despite the Council of Mortgage Lenders disclosing the number dropped by 1% in the first three months of the year in official figures. Continue reading 1 in 5 Mortgage Applications are for Buy to Let


Buy to let shines as mortgage lending slumps to 40 year low Buy to Let News, Latest Articles, Property Market News

Buy to let lending was the only bright point in a year when mortgage lending slumped to the lowest levels for almost 40 years, according to the Council of Mortgage Lenders (CML).

Landlord loans were up 40% in the year with advances of £14.1 billion against £10 billion a year earlier, says the CML annual report for 2011. Continue reading Buy to let shines as mortgage lending slumps to 40 year low


Principality 70% LTV buy to let rate revised Buy to Let News, Latest Articles, Mortgage News, Property Investment News, Property Market News

Principality has revised one of its two buy to let products upwards.

The new rate at 4.99% has a low fixed product fee of £999 and includes a free valuation and remortgage service, reducing upfront costs for larger loan amounts up to a maximum of 70% Loan to Value. Continue reading Principality 70% LTV buy to let rate revised


Godiva Rate Added to buy to let mortgage calculator Buy to Let News, Latest Articles, Mortgage News

Godiva 3.65% two year Bank Base Rate Tracker for buy to let.

Godiva has an attractive looking Tracker product with fixed arrangement fees instead of a percentage of the loan amount, making it especially competitive for higher value loan amounts up to a maximum of 65% Loan to Value. Continue reading Godiva Rate Added to buy to let mortgage calculator


Confidence is high for buy to let landlords and brokers Buy to Let News, Latest Articles, Mortgage News, Property Market News

Buy to let mortgage brokers are celebrating a buoyant first quarter of business as landlord demand for loans increased.

Almost 80% of mortgage brokers expect buy to let to continue growing for the rest of the year, according to the findings of a buy to let broker sentiment survey by Paragon Mortgages. Continue reading Confidence is high for buy to let landlords and brokers


Landlords safe from Bank of Ireland mortgage rate hike for now Buy to Let News, Financial Advice, Latest Articles, Mortgage News, Property Investment News, Property Market News

Landlords safe from Bank of Ireland mortgage rate hike for nowLandlords with Bank of Ireland buy to let loans can breathe a sigh of relief as mortgage interest rates are hiked by new owner the Nationwide.

The bank’s standard variable rates for residential mortgage borrowers are set to rise from 2.99%, to 3.99% in June and then to 4.49% in September, affecting around 100,000 customers. Continue reading Landlords safe from Bank of Ireland mortgage rate hike for now


Bank wants to pry into your personal spending Buy to Let News, Latest Articles, Mortgage News, Property Market News

Mortgage underwriters are set to ask borrowers detailed personal questions about their spending habits as the banks tighten up lending rules.

Santander’s Abbey for Intermediaries – which includes buy to let lending for landlords – will quiz applicants about how much they spent on Christmas and birthday presents.

Other one-off spending will also come under scrutiny, like holidays, celebrations and ‘miscellaneous’ spending. Continue reading Bank wants to pry into your personal spending


First ever government-backed mortgage indemnity scheme set to launch in March Latest Articles, Mortgage News, Property Investment News, Property Market News


-By Guest Columnist Daniel Coleman


The first ever government-backed mortgage indemnity scheme is set to be officially launched within the next few weeks. The NewBuy Guarantee scheme which takes off in March, aims to help 100,000 homebuyers who only have access to a five percent deposit to purchase a new-build property, in order to kick-start the housing market.

Under the new programme, developed jointly by the Home Builders Federation and Council of Mortgage Lenders, 95 percent mortgages will be made available to people spending up to the value of £500,000, a larger value than expected, on a new-build property. This will be great news for first-time buyers in the capital, where the average price of housing is much higher than anywhere else in the UK and also for existing homeowners who are looking to move up the property ladder into bigger homes. Continue reading First ever government-backed mortgage indemnity scheme set to launch in March


A serious new blow to mortgage borrowers Guest Columns, Mortgage News

I read with interest an article in the Daily Mail this week based on an announcement by Santander that they are radically over-hauling their policy on interest only mortgages. Now you can’t get an interest only mortgage from Santander unless you have 50% deposit to put down.

Business as usual, they can run things as they see fit.

For those of you that may not know, interest only mortgages (monthly payments of interest but no capital) have soared over the past few years as people gambled on property price increases covering the outstanding capital by the time the mortgage finished or as cheaper monthly mortgages underpinned by a known future pension or inheritance payout. Continue reading A serious new blow to mortgage borrowers


Lloyds tightens interest only rules for landlords Buy to Let News, Latest Articles, Mortgage News

Lloyds is the latest bank to tighten up interest-only lending criteria following the lead of Santander.

Both banks are significantly restricting interest only borrowing for personal residential mortgages, but leaving buy to let options intact. Continue reading Lloyds tightens interest only rules for landlords


Property is a Pension for 80% of Landlords Buy to Let News, Latest Articles, Mortgage News, Property Market News

Eight out of 10 landlords plan to supplement their pension income from letting property, according to the latest research by the National Landlords Association.

Landlords see buy to let as a way to increase their wealth and as a key method of generating a retirement income as an alternative to mainstream pension savings. Continue reading Property is a Pension for 80% of Landlords


Renting Costs £100 a Month More than Buying the Same Home Buy to Let News, HMO's & Student Lets, Latest Articles, Lettings & Management, Mortgage News

Buying a house is still £100 a month cheaper than renting – if you have a credit rating and the cash for a deposit that a mortgage lender demands.

The average monthly cost of buying a three-bedroom house is £600 per month, while average rent on the same property is £716, according to The Halifax.

The figures were taken from the bank’s lending figures and official databases in December. Continue reading Renting Costs £100 a Month More than Buying the Same Home


Buy to Let Mortgage Conditions Eased Buy to Let News, Latest Articles, Property Investment News, Property Market News

As the buy to let mortgage wars hot up, several lenders are easing their terms for landlords.

Yorkshire Building Society has decided to offer buy to let across England and Wales, instead of just London and the South East. Continue reading Buy to Let Mortgage Conditions Eased


Buy to Let Mortgage War Hots up with New Deals for Landlords Buy to Let News, Latest Articles, Lettings & Management, Mortgage News, Property Market News

Buy to let lenders have fired the first shots in the battle to win the hearts and minds of property investors.

Platform, the landlord loan subsidiary of the Co-operative Bank, is increasing funding in the sector by 33% from £450 million last year to £600 million in 2012. Continue reading Buy to Let Mortgage War Hots up with New Deals for Landlords


Aldermore Announce 80% LTV Buy to Let News, Latest Articles, Mortgage News, Property Investment News, Property Market News


News Sourced by Property118 News Team


Aldermore have increased the loan-to-value on its fixed buy to let range to 80%, as well as reducing its buy to let reversion rates by 0.5%. They’ve also reduced their two year discount and three and five year fixed rates.

The maximum portfolio size has been increased to 5 properties and £2million with a maximum loan available at £400,000. The property must also be valued at over £75,000. Continue reading Aldermore Announce 80% LTV


Brokers Slammed for Bridging Loan Abuse Financial Advice, Latest Articles, Mortgage News

Mortgage brokers have come under fire from consumer watchdogs for failing to advise customers about the risks of short-term borrowing to earn huge commissions.

After a mini-boom in lending over the year reported by bridging lenders, the Financial Services Authority (FSA) has warned that some brokers are doubling or trebling their fees by recommending bridging to customers rejected by banks and building societies. Continue reading Brokers Slammed for Bridging Loan Abuse


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


Buy to Let Lenders Forget to Mention the Missing Link Buy to Let News, Latest Articles, Mortgage News, Property Market News

Buy to let mortgage lending is going from strength to strength, according to industry trade body the Council of Mortgage Lenders.

In a lengthy review of the market, the CML discusses various reasons why buy to let is thriving while the rest of the mortgage market is in the doldrums – but fails to mention a key fact. Continue reading Buy to Let Lenders Forget to Mention the Missing Link


Mortgage Lending Recovers But Still Less Than a Year ago Latest Articles, Mortgage News

House on Calculator

"Mortgage lending is up, but not up to last year"

Mortgage lenders released the purse strings on home loans slightly in August, but this year looks unlikely to equal last year’s lending.

Remortgaging was up significantly, with 34,100 loans worth £4.2 billion, making both the number of loans and amount borrowed were more than 30% higher than August 2010.

The number and total value of home buyer loans also hit a high for 2011, with 52,000 mortgages worth £7.9 billion.

Nevertheless, lending for the year so far stands at just 329,000 loans to buy homes worth £48 billion when the totals for 2010 were 513,000 loans worth £75 billion. Lenders will have to advance substantially more funds for the rest of the year to reach last year’s levels.

The lack of home sales is reflected in a rising number of remortgages throughout the year.

Although the Council of Mortgage Lenders (CML) reports a massive increase in August, their statistics show that last year’s 865,000 remortgages worth £118 billion is unlikely to be matched, with this year’s totals currently standing at 230,000 remortgages worth £28 billion.

Paul Smee, director general of the CML, said: “Even though it is impossible to ignore the knocks to confidence emanating from the Euro zone, August lending showed welcome signs of life. With those moving house experiencing a record low in the proportion of their income needed to pay their mortgage interest, it is clear that the low rate environment is a benefit to those with mortgages, even against the backdrop of the gloom in the wider economy.

“Lending to both first-time buyers and home movers was at its highest for over a year.”

The outlook for first time buyers even bleaker as just 19,000 mortgages worth £2.4 billion were agreed in August – up 5% on July and 5% on 12 months earlier.

Most home buyers opted for repayment mortgages.


Cheap Buy to Let Mortgages Set to Disappear Buy to Let News, Latest Articles, Mortgage News, Property Investment News

Notes being squeezed into coins

"Buy to let mortgages to go up?"

Cheap fixed rate and tracker buy to let mortgages may be on the way out as the rate lenders pay for money has increased.

This is likely to lead to higher mortgage rates even if the Bank of England base rate stays at the record low of 0.5%.

Banks and building societies pay returns based on the London Inter Bank Offer Rate (LIBOR) for money they borrow – and the rate went up from 0.83 per cent in August to 0.95%.

The supply of money has also tightened due to the Euro-zone debt crisis.

Buy to let mortgage rates have dropped during the past 12 months, but are still higher than homeowner rates. Continue reading Cheap Buy to Let Mortgages Set to Disappear


CBI Challenges Government to Kick Start Housing Market Latest Articles, Property Investment News, Property Market News

Monopoly houses on piles of Pound coins

"CBI want the Government to do more to restart the misfiring economy"

The government should remove the financial and planning constraints that are throttling the housing market in a bid to boost the economy, industry leaders have urged.

In a keynote speech planned to influence Chancellor George Osborne’s autumn budget statement, Confederation of British Industry Director General John Cridland spelled out what employers want to see. Continue reading CBI Challenges Government to Kick Start Housing Market


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