Posts with tag: buy to let mortgages

Dudley Building Society Updates Buy-to-Let Range

Published On: September 2, 2016 at 8:32 am

Tags: buy to let mortgages,buy-to-let finance,buy-to-let sector,mortgages

Dudley Building Society has released its latest set of updates for its buy-to-let range, featuring new products, comprehensive rate reductions and improved criteria.

Dudley Building Society Updates Buy-to-Let Range

The society, which announced strong annual results for the 2015/16 financial year, with pre-tax profits of £1,335,000, is responding to a buy-to-let sector that “needs encouragement”, according to the firm’s Head of Credit, Jonathan Moore.

The updates include a reduction in interest rates across all products, with all fixed rate products cut by 0.30%. Rates now start at just 2.99%, with products now including options with no Early Repayment Charges (ERCs).

Dudley has also introduced brand new three and five-year discount products, with a maximum ERC period of three years.

The majority of products now carry a new maximum borrowing value of £1m, up from £500,000, while the minimum income required has been reduced to £20,000 per application.

In addition, Dudley’s stressed rate calculation has been simplified, through the removal of separate requirements for flats. Loan-to-value (LTV) requirements on background residential property have also been cut.

Moore says: “Landlords have been in the firing line over the past 12 months because of the Stamp Duty changes and, with the tapering effect on tax relief due to start in 2017, it is important that lenders like the Dudley do everything that we can to provide the kind of products that offer value, flexibility and a common sense approach to underwriting buy-to-let mortgages.

“Therefore, our partners will be pleased with the overall reduction in rates, some of which start from 2.99%. We have introduced new three and five-year discounted products, as well as options which have no ERCs. Dudley Building Society continues to lead the way by working exclusively through intermediaries and being among the first to abolish upper age limits for applicants. On top of which has been our commitment to manual underwriting and a holistic approach to every enquiry, which has given us a deserved reputation for the kind of service that brokers require for their customers.”

Do these new updates encourage you to invest further in the buy-to-let sector?

Buy-to-Let will remain robust, says lender

Published On: August 30, 2016 at 9:13 am

Author: Em Morley

Categories: Finance News

Tags: buy to let investment,buy to let mortgages,mortgage lender,Stamp Duty

Another mortgage lender has put forward its plans to join the consumer buy-to-let and initial-landlord market during the coming months.

Accord Buy-to-Let, an intermediary-only lender of the Yorkshire Building Society Group, has acknowledged recent changes are making buy-to-let investment more attractive than ever. Record-low interest rates and volatility in the stock market are certainly contributing to the appeal.

Investments

Buy-to-let investment remains popular despite the increase in Stamp Duty, removal of wear and tear allowance and alterations to mortgage interest tax relief, scheduled for next year. This is due to the fact buy-to-let has performed better than other investment types during recent times.

These include mainstream investments such as commercial property, UK Government bonds and cash.

Chris Maggs, Buy-to-Let commercial manager at Accord, noted, ‘we continually review how we can develop our mortgage proposition to best suit the needs of landlords. Despite the uncertainty in the buy-to-let arena we believe that it will remain a robust market.’[1]

‘As part of our commitment to support landlords we plan to expand into the consumer buy-to-let and first-time landlord markets in the coming months,’ he continued.[1]

Buy-to-Let will remain robust, says lender

Uncertainty

Just this month, Accord Buy-to-Let announced changes to its buy-to-let mortgage range. In addition, the lender launched a range of new tracker mortgages, giving landlords flexibility to exit their mortgage deal early without repayment fees.

Maggs observed, ‘there is a lot of uncertainty in the market due to the recent taxation changes impacting landlords and the tighter underwriting controls lenders are adapting to ensure landlords are not over committed and can support their property portfolio.’[1]

‘It is imperative that lenders look to support landlords by creating innovative products which provide flexibility in a changing environment,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/8/buy-to-let-market-will-remain-robust-says-accord

Buy-to-let sales down in July at Equifax Touchstone

Published On: August 23, 2016 at 9:49 am

Author: Em Morley

Categories: Finance News

Tags: buy to let mortgages,Buy-to-Let,landlords,mortgage transactions

New figures released today by Equifax Touchstone have revealed that sales of buy-to-let mortgages dropped sharply in July.

Transactions of these products fell by 15.2% (0.4bn) during July. Year-on-year, sales dropped by 39.1% (£1.5bn).

In terms of mortgage sales in general, there was a month-on-month fall of 15.7% (2.5bn) and a twelve-month drop of 16.6%.

What’s more, the average value of a buy-to-let mortgage also slipped year-on-year, from £160,203 to £157,195.

Falls

Residential mortgage sales also saw a drop, by 15.8% (£2.1bn) month-on-month and by 9.7% (1.2bn) annually.

By region, every area with the exception of the North West saw declines in double-digits. Equifax Touchstone’s data shows the area saw a drop of 7.6% in mortgage transactions during July.

The most-prominent falls were recorded in Northern Ireland and Scotland, with drops of 28.7% and 21.5% respectively. In London, there was a monthly fall of 13.5%.

Buy-to-let sales down in July at Equifax Touchstone

Tenterhooks

Iain Hill, Relationship Manager at Equifax Touchstone, observed that, ‘following Brexit, the UK housing market has been on tenterhooks, waiting to see how hard property buyers’ confidence has been hit. It’s important to remember that the summer period traditionally brings a dip in mortgage sale volumes during July and August, so it will be many months before the full effect of Brexit is uncovered.’[1]

‘We’re confident that the market will bounce-back longer term, with negativity likely to be offset by the recent interest rate cut, leading to lower and more competitive rates from lenders,’ he added.[1]

[1] http://www.propertyreporter.co.uk/finance/buy-to-let-sales-see-15-monthly-dr0p.html

Skipton launches new buy-to-let mortgage products

Published On: August 22, 2016 at 11:44 am

Author: Em Morley

Categories: Finance News

Tags: buy to let mortgages,Buy-to-Let,landlords,Mortgage deals,Skipton

Skipton Building Society has today launched a new range of fixed-rate buy-to-let mortgage products. Interest rates on some products have been lowered by up to 0.5%.

New products include two and five-year term purchase and remortgage deals, which come at 60%, 70% and 75% LTV. Borrowing rates begin at less than 2%.

Fixes

The new two-year fixed rate at 1.89% to 60 LTV and five-year fix at 2.99% up to 70% LTV both come with arrangement fees of £1,995.

For people looking to remortgage, two-year fixed range options include a 2.15% to 60% LTV and a 2.49% at 70% LTV, both with £995 fees.

All remortgage options on offer by Skipton include free valuation and legal fees. All purchase products include a free standard valuation.

Skipton launches new buy-to-let mortgage products

Attractive

According to Kris Brewster, Skipton’s head of products, buy-to-let is still an attractive proposition, especially given the fact that interest rates are now at 0.25%.

Mr Brewster said, ‘we are delighted to launch this refreshed fixed-rate buy-to-let mortgage range offering lower interest rates. In the present environment of ultra-low interest rates, buy-to-let would seem to be a more and more attractive proposition for potential landlords.’[1]

‘Skipton’s buy-to-let deals continue to prove popular and we believe this new range offers great value for purchasers of buy-to-let property and for those wishing to remortgage their portfolio. We have a total of 36 products in our buy-to-let range to give landlords and potential landlords plenty of choice and as many different options as possible to help suit their many different needs,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/8/buy-to-let-rates-cut-by-skipton

New mortgage deal for BTL landlords at the Mansfield

Published On: August 11, 2016 at 11:37 am

Author: Em Morley

Categories: Finance News

Tags: buy to let mortgages,Buy-to-Let,buy-to-let landlords,mortgage rates

Mansfield Building Society has moved to launch a new five-year fixed rate buy-to-let mortgage product. This product will be set at 3.29% and will is aimed to attract smaller landlords to alleviate some of the Brexit uncertainty.

Buy-to-let

The product is available for both purchase and remortgage and can be used for Consumer Buy to Let.

Some key features of this new mortgage are:

up to 70% LTV
a fixed rate of 3.29% for the first five years
free basic valuation
an application fee of £199
completion fee of £1,800
repayment charge of 3% for the first five years

This product has been launched in addition to the Mansfield’s existing buy-to-let portfolio. Lending is available up to the age of 85 at the end of the mortgage term.

Rental income is assessed at 130% of the monthly mortgage interest, which is calculated at 5%.

New mortgage deal for BTL landlords at the Mansfield

Certainty

Steve Walton, National Development Manager at the Society, said, ‘buy-to-let landlords have had a tough time in 2016 so far. Whilst we can’t do anything about the increase in taxation or the regulatory burden, we can do our bit for them by providing greater certainty through this period of unprecedented change.’[1]

‘Since the EU referendum results, there has been plenty of speculation about potential fluctuations in the bank base rate, which is unsurprising given that Article 50 is expected to take up to 2 years to be fully invoked. During this time landlords will want reassurance of a fixed outgoing to help manage their income and expenditure,’ Walton added.[1]

[1] http://www.propertyreporter.co.uk/finance/mansfield-targets-small-independant-landlords-with-new-5-year-fix.html

Buy-to-Let Lending Continues Recovery, but Borrowing is Still Down

Published On: August 11, 2016 at 10:03 am

Author: Em Morley

Categories: Finance News

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

The buy-to-let lending market has continued its recovery, but borrowing is still down in the sector, according to the latest Council of Mortgage Lenders (CML) report.

Buy-to-Let Lending Continues Recovery, but Borrowing is Still Down

The study found that buy-to-let landlords borrowed a total of £2.9 billion in June, up by 12% on May. However, the value of these loans was significantly lower than the volume recorded in June last year.

The amount of landlords purchasing property has fallen substantially since the higher rate of Stamp Duty was introduced at the start of April, as reflected by a 15% annual decrease in lending to buy-to-let investors in June. However, the CML claims that this decline was caused by a boost in the market ahead of the Stamp Duty deadline.

The Director General of the CML, Paul Smee, says: “Buy-to-let house purchase activity remains lower than before the Stamp Duty changes at the beginning of April, but showed a large month-on-month increase. As might be expected, buy-to-let remortgage seems to have been less affected by the changes and remains consistent with lending last year.”

But while many buy-to-let landlords have been deterred by the tax changes, first time buyers are taking advantage of less competition from investors in the property market.

First time buyers borrowed a collective £5.5 billion in June, up by 28% on May and 25% on June 2015. June’s figure represents the greatest volume of loans for first time buyers since August 2007.

Overall, mortgage lending in June was up by 29% on the previous month, and 12% year-on-year.

The Director of London estate agent Greene & Co., Stephen Matthews, believes that property purchase activity has remained fairly robust, despite wider uncertainties in the market.

He explains: “The data shows first time buyers continue to be a driving force in house purchase lending, outperforming home movers for the third month running and up 25% annually. Nevertheless, the number of home movers has risen by a healthy 5% year-on-year, despite Brexit jitters and the accompanying uncertainty surrounding future economic stability.

“Buy-to-let house purchase activity still remains lower than before the changes to Stamp Duty at the beginning of April, which has had a bigger impact to annual lending than the EU referendum. However, it is clearly evident that private landlords are beginning to return to the market, as we see a large month-on-month increase.”

The findings arrive as recent data from LSL suggests that a drop in property transactions was caused by the Stamp Duty changes, rather than the Brexit vote.