Posts with tag: buy-to-let finance

Together Launches New Specialist Buy-to-Let Range

Published On: June 13, 2017 at 8:13 am

Tags: buy-to-let finance,finance,mortgages,property investors

Together has launched a new, specialist buy-to-let product range, created to support property investors as they expand their portfolios.

Together Launches New Specialist Buy-to-Let Range

The finance provider has also increased its maximum loan size to £2m.

Aimed at landlords and investors with multiple properties, as well as those looking to secure finance on Houses in Multiple Occupation (HMOs) and semi-commercial properties, the new, specialist buy-to-let range is tailored for complex situations, and applies across both first and second charge loans.

The higher loan size of £2m is available for first charge applications on both the standard and specialist buy-to-let products, and spans most property types.

The maximum loan size for second charge has also been increased to £500,000.

The Commercial CEO of Together, Marc Goldberg, says: “We’re seeing continued demand for buy-to-let lending, with an increase of 44% in 2016, so we’ve developed this new product range to support property investors as they build their portfolios. As a leading buy-to-let lender, we’re committed to improving and enhancing our products in line with market needs, and our increased loan size of £2m is reflective of the growing demand for larger loans.

“The buy-to-let sector is in a period of transition and, whilst there are a lot of changes taking place, it’s also an exciting time for the market as it adapts and evolves. In fact, we’re seeing that long-term investors are not being deterred, but are perhaps focusing on lower loan-to-values and using larger deposits to take the various changes into account.”

He continues: “We’re very much committed to growing our buy-to-let business and have a dedicated team in this area whose knowledge of the market is second-to-none. We look at applications from all types of customers, including limited companies, and apply our common-sense philosophy to each lending decision. Our recent growth in this area is a clear indication of our success, and we hope that this will continue as we move forward.”

A recent study by Mortgages for Business suggests that landlords still have an appetite for future property investments – Together’s new, specialist buy-to-let range may have come at the right time!

Lender Targets High Net Worth Buy-to-Let Investors with New Range

Published On: May 4, 2017 at 10:03 am

Author: Em Morley

Categories: Finance News

Tags: buy to let mortgages,buy-to-let finance,high net worth,mortgages

Lender Targets High Net Worth Buy-to-Let Investors with New Range

Specialist mortgage lender Investec Private Banking is hoping to attract more high net worth buy-to-let investors with a new range of buy-to-let mortgages.

The selection of two, three, four and five-year fixed rate buy-to-let mortgage products on offer have been linked to Investec bank’s base rate, rather than the three-month LIBOR.

The fixed rate deals, available to individual landlords and those investing through a limited company structure, feature rates starting from 2.69% at 50% loan-to-value (LTV), and are available up to 70% LTV.

The buy-to-let base rate tracker product currently has rates starting from 2.25% over Investec bank’s base rate of 0.25% at 50% LTV, with rates also available up to 70% LTV.

A Business Development Manager at Investec Private Banking, Peter Izard, comments on the new range aimed at high net worth landlords: “We’re delighted to be expanding our buy-to-let range by offering brokers and their clients a choice of competitive fixed rates or trackers linked to Investec bank base rate.

“Our proposition is designed to appeal to high net worth borrowers, particularly those looking to acquire rental property in the higher value prime central London and South East property markets.”

The high net worth range follows an announcement from Paragon Mortgages yesterday, which included details of its updated buy-to-let range, with longer term planning in mind.

Landlords – including high net worth individuals – thinking of investing in the buy-to-let sector must be aware of the Government’s reduction in tax relief on mortgage interest and other finance costs, which is currently being gradually introduced.

Some basic rate taxpayers may be forced into the higher tax bracket as a result of the changes.

Mortgage Trust Launches Lowest Ever Fixed Rates

Published On: April 25, 2017 at 10:05 am

Author: Em Morley

Categories: Finance News

Tags: buy to let mortgages,buy-to-let finance,mortgage rates,mortgages

Mortgage Trust Launches Lowest Ever Fixed Rates

Specialist buy-to-let mortgage provider Mortgage Trust has launched its lowest ever fixed rates.

The three new limited edition products for buy-to-let property purchases and remortgages are being offered at the firm’s lowest ever rates.

These two-year fixed rate products are now available at the lowest rates ever offered by Mortgage Trust.

Addressing a continuing preference amongst buy-to-let landlords for fixed rates, the limited edition products include a two-year fixed rate deal at 1.95% for borrowing up to 75% loan-to-value (LTV). Product fees start at just £495, and each of the limited edition products includes a free valuation.

The mortgage provider is also offering a deal at 2.05%, while a 65% LTV ratio is available.

The Director of Mortgages at Mortgage Trust, John Heron, comments on the new offerings: “There is currently an overwhelming preference for fixed rates, with intermediaries now recommending them in 90% of cases. Half of all fixed rates sold are two-year products – these new fixed rates should therefore present an attractive option for many buy-to-let landlords.”

First Time Landlord Product Availability in Decline

Published On: April 12, 2017 at 9:49 am

Author: Em Morley

Categories: Finance News

Tags: buy to let mortgages,buy-to-let finance,first time landlords,mortgages

First Time Landlord Product Availability in Decline

The availability of first time landlord mortgage products is in decline, according to research from Moneyfacts.co.uk.

Although the overall number of buy-to-let mortgage products has risen, the availability of deals for first time landlords has dropped by 5% over the past year.

The Finance Expert at Moneyfacts.co.uk, Charlotte Nelson, explains: “Over the past few years, the number of buy-to-let products on the market has increased but, despite this, new landlords have missed out on the buy-to-let boom, as they now have a smaller percentage of the market to choose from, following a drop in availability of 13% over just two years.

“This can be explained in part by the uncertainty that exists in the market at current, which has made some providers slightly more risk-averse. By their very nature, first time landlords lack experience in managing rental properties, and this is considered more of a risk now than perhaps it once was.”

She continues: “The tougher affordability rules which have reduced the amount landlords can potentially borrow are being felt in the market, with the average two-year fixed rate at 70% loan-to-value [LTV] having risen by 0.14% to 3.16% since January. This could be disproportionally affecting first time landlords, who may want to borrow at higher LTVs.

“This extra regulation means borrowers will face added checks and questions about their finances. So, any would-be landlords will need to do their homework and prepare in advance to ensure they can pass with flying colours and get the buy-to-let mortgage they want.”

However, she adds: “Despite the reduction in availability for first time landlords, deals have not been removed completely, and with savings rates remaining in dire straits, buy-to-let still looks like a good option. However, anyone considering it should seek the advice of an independent financial adviser to see if this riskier option is the right choice for them.”

If you a first time landlord considering a property investment, you must be aware of the recent changes introduced in the buy-to-let sector regarding tax relief. This Government guide explains exactly how you will be affected: /government-guide-tax-relief-changes-residential-landlords/

Landlords, are you a Buy-to-Let Mortgage Prisoner?

Published On: March 24, 2017 at 9:44 am

Author: Em Morley

Categories: Finance News

Tags: buy to let mortgages,buy-to-let finance,landlord taxes,lending criteria

Many landlords are stuck with lenders on less than competitive interest rates, or trapped on higher standard variable rates, making them virtual mortgage prisoners, according to The Mortgage Broker Ltd.

Landlords, are you a Buy-to-Let Mortgage Prisoner?

The nationwide broker is warning that landlords may feel like mortgage prisoners due to new affordability testing, which is being undertaken by lenders. As a result, some landlords are suffering expensive mortgage rates, which are eating into their profits each month, or even forcing them into a loss.

The new lending rules mean that some lenders will also have to take into account a landlord’s other expenses, such as their tax status. As such, landlords must be aware of the new mortgage interest tax relief changes coming into force from 6^th April 2017.

It will be on these stricter lending criteria that landlords will be assessed to see if they can afford to borrow.

The Managing Director of The Mortgage Broker Ltd, Darren Pescod, believes that many landlords do not fit the new standards.

He explains: “Britain’s two-million landlords are facing assaults from both the taxman and the Bank of England. The mortgage restrictions are very bad for landlords and pose a major threat to buy-to-let investments. If landlord mortgages are tougher to secure, buy-to-let landlords could find themselves stuck on expensive rates indefinitely.

“Thankfully, the Ipswich Building Society has returned to the mortgage market with two new buy-to-let products, specifically aimed at buy-to-let prisoners or misfits. The good news is that the lender will only assess rental income at 125% of the mortgage pay rate.”

Ipswich Building Society has also confirmed that it will accept remortgage applications from selected intermediaries and its prestige partners, including The Mortgage Broker Ltd.

“This new move will increase the options available to landlords looking to remortgage, where they may be restricted by the Financial Conduct Authority rules for calculating mortgages for buy-to-let landlords,” believes Richard Norrington, the Chief Executive of Ipswich Building Society.

“We continue to provide choice in the marketplace for mortgage misfits and those who may not fit a one-size-fits-all assessment. By employing a manual approach to underwriting, with consideration of each application based on individual circumstances, this new initiative will have creditworthy buy-to-let borrowers who may be finding it hard to remortgage away from their existing lender.”

Landlords, do you consider yourself a mortgage prisoner?

New Buy-to-Let Lending Remains Flat, but Remortgages are High

Published On: January 18, 2017 at 11:16 am

Author: Em Morley

Categories: Finance News

Tags: buy-to-let finance,Buy-to-let lending,homeowners,mortgages,remortgaging

New buy-to-let lending remained flat at the end of last year, but remortgages in the sector are high, distorting the outlook for the market, according to the Council of Mortgage Lenders (CML).

Instead, home movers and first time buyers dominated mortgage lending in November 2016 – the latest month for which data is available.

House purchase loans

New Buy-to-Let Lending Remains Flat, but Remortgages are High

Lending to homeowners increased by 5% between October and November, to a total of £11 billion, up by 2% on an annual basis. Homeowners took out 60,800 loans, up by 5% on the previous month and 0.2% over the year.

First time buyers borrowed £4.7 billion, up by 4% month-on-month and 9% on November 2015. This equated to 30,100 loans, up by 5% on October and 8% annually.

Meanwhile, home movers borrowed £6.3 billion, up by 7% on the previous month, but down 5% compared with November 2015. This represented 30,700 loans, up by 6% on a monthly basis, but down 6% year-on-year.

Buy-to-let lending

Buy-to-let lending reached £3.2 billion in November last year, up by 10% on October, but down 9% on an annual basis. Landlords borrowed 21,000 loans in total, up by 13% on the month, but down 10% when compared to November 2015.

The CML reports that these figures make it look like buy-to-let lending has returned to times before the Stamp Duty rush, when 23,500 loans were recorded in March 2016 and 21,900 in April 2016, before dropping to around 18,000 each month for the rest of the year.

But the latest figures are slightly skewed by remortgages, as this type of loan actually made up 14,000 of the 21,000 loans lent in the buy-to-let sector.

The CML data also shows that the proportion of household income used to service capital and interest rates reached another historic low in November for both first time buyers and home movers, at 17.5%.

The Director General of the CML, Paul Smee, comments on the figures: “November lending reflected stable market conditions. Overall, 2016 did not match recent years in terms of house purchase lending growth, but lending remained resilient through regulatory and political change, and aspirations for homeownership remain strong in the UK.

“Our forecasts for 2017 may be less bullish than a year ago, as economic uncertainty weighs on the market, but we still predict 1.2m transactions and a slight increase in gross lending to £248 billion.”

He looks at the buy-to-let sector: “Buy-to-let lending, driven by remortgage activity, saw its strongest monthly lending level since the Stamp Duty changes on second properties introduced last April. Despite this, we expect buy-to-let lending levels in both 2016 and 2017 to prove lower than their 2015 recent peak, as further tax changes take effect.”