It is possible to remortage within six months of purchase, even on a buy to let property, I promise you! Forget everything you have heard about “the CML’s six month rule”, no such rule exists!
The legend of the “CML’s six month rule” for remortgaging has been bandied around forums for at least five years now but I can assure you that no such rules exists – allow me to explain. Continue reading You can remortage within six months!
IFA Howard Reuben
As an avid reader of Property118.com I was very interested to read a couple of recent articles 1) Should landlords buy life insurance and 2) What happens when a landlord dies – both of which touched on the subject of what happens to the BTL mortgage contract if a borrower / landlord dies and also what happens to the property(ies) in this situation too.
What caused me to carry out some further detailed research in this matter, however, is that it was quite clear, not only from the comments left by readers but from my own experience as a Financial Adviser with 20 years business practice working in the BTL mortgage and insurance sector, and also as a portfolio landlord myself, that different people think different things will happen to their estate when they die. Continue reading Life Insurance for Landlords – IFA readers letter
I had a really interesting discussion about life insurance yesterday with a lady I’ve respected for many years. I will not embarrass her by publishing her full name as she doesn’t know I’m writing this. Some people reading this (former clients of The Money Centre in particular) and the lady in question if she reads it, will know who I’m referring to though. I will call her Ms T. She was one of the best buy to let consultants we ever had working at The Money Centre and always finished in the top 10 fee earners every year. Ms T literally went from being our tea lady to becoming an Associate Partner in the business whist bringing up two lovely daughters as a single parent. She also managed to buy a few properties for investment too so I think you can begin to see why I have such respect and admiration for her achievements.
When The Money Centre pulled out of the buy to let mortgage market back in 2009 Ms T decided to become a financial advisor. She obviously still arranges lots of buy to let mortgages but what really surprised me was when she told me that landlords also ask her to arrange their life insurance. Most of the landlords I talk to aren’t interested which is why we never sold life insurance at The Money Centre. Ms T said that’s what she used to think too but her opinion now has completely changed and she explained why. Continue reading Should buy to let landlords buy life insurance?
The ‘bad bank’ that owns former buy to let specialist Mortgage Express has announced a massive surge in pre-tax profits to just over £1 billion.
UK Asset Resolution, the government-backed bank that took over the debts of Northern Rock and Bradford and Bingley in 2010, claims the improvement is due to tough action to reduce arrears and stamp out fraud.
Mortgages three months or more in arrears fell 14% during the year to 33,216, with 98 homes repossessed. Continue reading Bad bank profits leap to £1 billion
Ever since I got into this business I have avoided SVR (Standard Variable Rate) mortgages or discounted/fixed rate mortgage products that revert to an SVR like the plague. Now I’m not talking about bank base rate trackers or LIBOR rates, they are fine. I prefer bank base rate trackers myself but that’s another story and I’m rambling now so I will move on. Continue reading The Dangers of SVR’s (Standard Variable Rate) Mortgages
Landlord’s Log, the Personal Blog Of Mark Alexander, the Founder of Property118
** I was so shocked when I received this commentary last weekend that it has taken me until now to decide to post it. The following was sent to me as an email by a person who prefers to remain anonymous for obvious reasons. The commenter has not responded to my numerous emails. Is this a joke? I have decided to share it with you because; frankly I was flabbergasted and wanted to see what you have to say. I’ve decided to give this poster a name and a picture and in a strange sort of way I hope he will be back to entertain us all again with his responses to your comments. The name I’ve given to him (at least I think it’s a him) is “The Banker”. The following is what he had to say …
I knew that title would catch your attention.
One mans misfortune is another mans opportunity, mine!
You and your highly leveraged buy to let pals are all like lemmings heading towards a cliff, oblivious of your fate.
Well here I am, to warn you of your fate.
I’m not the only one hoping that the next boom will in fact be an implosion in terms property values, you call it a property crash, it will be the making of the likes of me. The chaps on that House Price Crash forum are doing me a big favour by talking up the next crash. Continue reading The Property Boom of 2012
Bridging loans expected to increase by £billions
Buy to let lending is likely to increase by billions over the next three years as smaller, independent lenders come to the market, claims specialist lender Precise Mortgages.
The firm’s managing director Alan Cleary gives some interesting insights into buy to let borrowing for landlords in an interview with a trade magazine. Continue reading Bridging lenders aim for £8 billion buy to let boost
Buy to let specialist Mortgage Express expects to write-off another £80 million to loan fraudsters and slack business practices this year.
The former buy to let lender shut up shop for new business during the credit crunch and has already put aside around £200 million to pay for suspected fraud and negligence. Continue reading Mortgage Express sets aside another £80 million for fraud
A spokesman for Mortgage Express revealed their exit strategies at the Northern Property Tribes last night which was met with uproar both on and off-line.
Apparently, if you sell a property that’s mortgaged to them, Mortgage Express have the right to call in all of your other loans. The details of how they can insist on this are apparently in the small print of their buy to let lending terms and conditions. It was also intimated by the Mortgage Express spokesman that the bank is retaining the entire proceeds of sale where a property is sold. Questions have been raised by landlords over the legality of this practice and terms and conditions are being poured over by landlords and their legal advisers all over the country. Continue reading Uproar as Mortgage Express spokesman reveals their Exit Strategies
The bank closed it’s doors to new lending a few years ago as a result of the credit crunch and has a strategy to clear all existing lending within eight years.
They are encouraging redemptions (waiving penalties) and selling off loans to achieve their goal so they are definitely serious.
Their latest offering is a five year fixed rate at 4.09% to existing borrowers only. The deal is a bit sketchy and we don’t know yet whether the ERC’s will apply to these fixed rate deals or what the reversion rate will be at the end of year five.
Whilst the rate will appear attractive to many borrowers there is a catch. Continue reading Mortgage Express reveal 4.09% fixed rate deal for five years (existing borrowers only)