Tag Archives: TMW

There’s good money in bungalow refurbishment Buy to Let News, Commercial Finance, House Prices, Landlord News, Latest Articles, Property Development, Property Investment Strategies, Property Maintenance, Property Market News, Property News

Whilst a bungalow isn’t likely to provide you with the highest possible rental yield, bungalows should not be overlooked as property investment opportunities, especially by investors with with good refurbishment skills or a good team of tradesmen. Continue reading There’s good money in bungalow refurbishment


All change on the buy to let mortgage front Buy to Let News, Latest Articles, Lettings & Management, Mortgage News, Property Investment News

Co-Operative Bank buy to let mortgage customers can breathe a sigh of relief as the wholesale scrapping of interest only loans does not include buy to let borrowers.

The bank’s specialist property investment subsidiary Platform will continue to offer interest only deals to landlords. Continue reading All change on the buy to let mortgage front


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


Eastern Landlords Association MARCH 2012 NEWSLETTER Eastern Landlords Newsletter, UK Property Forum for Buy to Let Landlords

Deposits

Three cheers for competition. A few weeks ago TDS, The Dispute Service, announced Deposit Guard, which at launch undercut the costs charged by My Deposits, and made a push for self-managing landlords, rather than agents. My Deposits have retaliated, by reducing their fees for agents, but not landlords. This may follow, and we shall keep members informed. The third, custodial scheme, used by many, as a free scheme is not affected.
Continue reading Eastern Landlords Association MARCH 2012 NEWSLETTER


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


New mortgage deals for HMO and student landlords Buy to Let News, Latest Articles, Lettings & Management, Mortgage News


– News Sourced by Property118 News Team –


Kent Reliance has launched 80% loan-to-value buy to let and HMO mortgages. Rates include two and three year fixed and discounted deals.

The lender has joined the ranks of few banks and building societies inviting applications for houses in multiple occupation loans, specifically for student landlords.

HMO, student let and limited company mortgages start at 5.19%. Continue reading New mortgage deals for HMO and student landlords


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

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


Buy to Let Lender Reveals Landlord Loan Home Truths Latest Articles, Mortgage News, Property Market News

Buy to let insiders have revealed some home truths behind the property business in an online video for mortgage brokers.

The key speaker was Paul Howard, head of the Nationwide’s specialist accounts, which includes major landlord lender The Mortgage Works (TMW)

The video debate was hosted by trade magazine Mortgage Solutions, bringing Howard together mortgage brokers and an independent adviser. He said he expects to see a continuing and growing demand for buy to let mortgages.

“I expect buy to let to grow to 20%, maybe 25% of all broker business,” he said. “The market is very significant and the trend has already started. More people need to rent and this demand is driving more demand for buy to let.”

He explained that landlord mortgages are likely to grow 40% this year – from £10 billion of lending in 2010 to £14 billion.

The reason is margins on lending – Howard highlighted that mortgage lenders can make bigger profits on lending the same amount of money to landlords rather than other homeowners.

“Buy to let margins are a lot more attractive than residential lending,” he said. “Lender’s criteria will soften, tighter margins will give landlords better pricing.”

He went on to explain why landlord lenders charge such high fees.

“Buy to let fees are misunderstood,” he said. “Higher fees give borrowers lower interest rates and improves cash flow for a landlord. High fees also make the rent cover calculation work better.”

Howard then discussed how the cost of a high fee/low rate mortgage is similar to a no fee/high rate loan – but 90% of TMW customers opt for the higher fee product because the lower mortgage rate gives them better cash flow.

“Low rate, low fee mortgages are not going to happen,” he said. “The lender won’t make a profit from these loans and buy to let mortgage rates are higher because lenders are not paying the Bank of England base rate for their money.”

The debate also covered mortgage regulation, which Howard spoke out against.

View the debate here


Buy to let Borrowers Braced for New Lenders Latest Articles, Lettings & Management, Property Investment News, Property Market News

House with for rent sign

"Buy to let is about to been shaken up by new lenders"

The buy to let mortgage market is set for changes as new lenders are ready to offer loans to property investors.

Santander was poised to start lending last month, but has held back blaming technology problems.

The bank had approached mortgage brokers with a 75 per cent loan-to-value deal for landlords with small portfolios of up to three properties.

The loan will come with a capped £1,000 arrangement fee.

Santander has hinted that the bank was to enter the buy to let market for months. Continue reading Buy to let Borrowers Braced for New Lenders


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.


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