Tag Archives: Stress Testing

Godiva launch new 75% buy to let product range Buy to Let News, Landlord News, Latest Articles, Property News

Godiva, owned by the Coventry Building Society, have launched an aggressive new buy to let product range extending its loan to values to 75% and adding 5 year fixed rates with no early repayment charges.

They have obviously secured funding and are hungry for market share with the 5 year flexible fixed at 5.75% and a lifetime flexible variable at 5.49%. These products are targeting the market that wants a long term deal without the need to remortgage in a short space of time whilst keeping options open for future changes in circumstances (further details below) Continue reading Godiva launch new 75% buy to let product range


How to combat Commercial and development loan rate increases Commercial Finance, Landlord News, Latest Articles, Property News

Bank tariffs are increasing amidst fears of the Euro zone instability and the resulting increase in funding costs. There is no doubt that rates will continue to increase, which is why fixed rate deals are particularly attractive.

Protecting your business against future interest rate shocks and having peace of mind of a fixed payment term is proving to be a popular choice. Lenders also see this as an attractive option because it lessens their exposure to the risk of borrower default as a consequence of rate increases over the term of the loan. Equally popular is a mix of variable rate and fixed.

Continue reading How to combat Commercial and development loan rate increases


My first intentional property investment part 5 Landlord News, Landlords Stories, Latest Articles, Lettings & Management, Property Investment Strategies, Property News

By 1999 I had realised that I needed to put money aside for maintenance. Tenants were moving in and out all the time and I was bleeding money on carpet cleaning, magnolia paint and replacement carpets at an unbelievable rate. I’d started investing into bigger houses and renting them to people with children and groups of professionals so the wear and tear was much higher. Remember, I’d also been furnishing my properties with cream carpets. When they got shabby it was difficult to find new tenants without replacing the carpets. Continue reading My first intentional property investment part 5


Development Finance is still supported in the current market Commercial Finance, Landlord News, Latest Articles, Property News

We are witnessing a significant rise in the incidence of some banks refusal to offer new or extended terms to development loan facilities. In extreme cases, some banks are demanding early loan redemption. This often leaves the borrower with a major headache in a market where commercial lending is restricted and competitive alternatives are not immediately apparent.

There is no doubt that some banks are ‘shoring up’ their liquidity positions by not lending as broadly as they have done in the past, but there are still a good number lenders very much in the market. Continue reading Development Finance is still supported in the current market


How to calculate the amount you can borrow on a buy to let mortgage Buy to Let News, Latest Articles, Property Investment Strategies

“How much can I borrow?” is a question I am asked on a daily basis and thought I would assist by creating a written reference point.

The first thing to bear in mind is that Lenders perceive a buy to let mortgage as a self funding commercial business proposition with the rental income covering the loan repayments. Buy to lets are an “off the shelf product” very similar to residential mortgages, but are not regulated under the FSA in the same way and do not normally require your personal income to cover the loan repayments. Continue reading How to calculate the amount you can borrow on a buy to let mortgage


A simple guide on how to calculate maximum loan based on lenders criteria. Latest Articles

By Neil Patterson, Partner of The Money Centre.

Most mortgage lenders use credit scoring to determine whether an applicant is “good for credit”. However, unlike personal mortgage lending, which is based upon an applicant’s ability to service mortgage payment and repay the loan from earned income, buy to let lending is often based upon the ability of a property to be rented to provide sufficient income to service the mortgage interest and associated expenses.

Continue reading A simple guide on how to calculate maximum loan based on lenders criteria.


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