Posts with tag: buy to let mortgages

Accord Cuts Buy-to-Let Remortgage Rates

Published On: March 1, 2016 at 3:02 pm

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Accord Mortgages Buy to Let has cut certain rates by up to 0.15% on its range of two-year fixed rate mortgages at 60% and 75% loan-to-value (LTV).

The intermediary-only lender, part of Yorkshire Building Society Group, is now offering landlords looking to remortgage with a 25% deposit a series of two-year fixed rate loans with £800 or £2,495 fee options and a range of incentives on select products.

Accord Cuts Buy-to-Let Remortgage Rates

Accord Cuts Buy-to-Let Remortgage Rates

Some highlights of the two-year remortgage range include:

  • A 2.34% two-year fixed rate mortgage at 75% LTV with a £2,495 fee.
  • A 2.49% two-year fixed rate mortgage at 75% LTV with a £2,495 fee, and free standard valuation and legal fees.
  • A 2.49% two-year fixed rate mortgage at 75% LTV with a £2,495 fee and £300 cashback on completion and free standard valuation.
  • A 2.64% two-year fixed rate mortgage at 75% LTV with a £800 fee.
  • A 2.89% two-year fixed rate mortgage at 75% LTV with a £800 fee and free standard legal fees, or £300 cashback on completion and free standard valuation.

Each loan is available with a discounted reversion rate of 4.04% for three years once the initial fixed rate period ends.

During the reversion rate period, landlords will not have to pay any early repayment charges and can redeem their mortgage at any time.

On the mortgage’s fifth year, the rate will change to Accord’s standard variable rate of 5.79%.

The National Account Manager of Accord Buy to Let, Chris Maggs, comments: “Not only does our new range offer enticing rates and a choice of incentives, landlords taking out a two or three-year product will also benefit at the end of the mortgage term, as they will revert to our discounted reversion rate, or have the option of transferring to another attractive product available for existing borrowers.

“We are constantly reviewing our buy-to-let mortgages to offer the best fit for landlords, and we hope that this combination of benefits will really appeal to both landlords and brokers looking for the best option to suit their individual requirements.”1

We will continue to bring you the latest news of the mortgage market and buy-to-let finance.

1 http://www.mortgageintroducer.com/accord-cuts-75-ltv-rates/#.VtV9HVtLH8s

 

 

New year Buy-to-Let surge recorded by BBA

Published On: February 24, 2016 at 11:39 am

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More evidence of landlords rushing to beat the forthcoming buy-to-let stamp duty rise has been given with the results of the latest figures released by the British Bankers’ Association.

According to the data, gross mortgage borrowing from High Street banks increased to its greatest level since 2008.

Pre Stamp Duty surge

The number of mortgages approved for house purchases was 27% greater that at the same stage in 2015, with the British Bankers Association putting this down to a rush to beat the increased charges.

Recently, the Council of Mortgage Lenders (CML) reported that it had seen an eight-year high in mortgage borrowing.

Mortgage lending may be rising, but the number of completed property sales has yet to show a significant rise.

Figures from HMRC show that the number of property sales in Britain actually slipped on a seasonally-adjusted basis, in comparison with December.

New year buy-to-Let surge recorded by BBA

New year buy-to-Let surge recorded by BBA

Buy-to-let Warning

Stamp Duty increases are expected to bring in an extra £1bn for the Treasury by 2021. However, landlords have expressed concern that it will see off investment in rental accommodation.

Samuel Tombs, chief UK economist for Pantheon Macroeconomics, is convinced that demand will carry on exceeding supply in the market, with house prices rising as a result.

‘Looking ahead, we expect approvals to remain on an upward trend,’ he noted. ‘Consumer confidence is high, real income gains remain strong and mortgage rates are set to fall again in response to the decline in wholesale funding costs.’[1]

Mr Tombs went on to say, ‘new buyer enquiries at estate agents have been rising quickly and point to mortgage approvals rising by a further 5% over the next three months. With the active supply of homes on the market close to record lows, house prices look set for very strong gains.’[1]

[1] http://www.bbc.co.uk/news/business-35648994

Skipton Building Society Cuts Interest Rates on Buy-to-Let Mortgages

Published On: February 24, 2016 at 9:39 am

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Skipton Building Society has launched a revised series of fixed rate buy-to-let mortgage products, with interest rates cut on certain deals by up to 0.18%.

This will come as good news to those landlords that are hoping to beat the 1st April Stamp Duty deadline.

Skipton Building Society Cuts Interest Rates on Buy-to-Let Mortgages

Skipton Building Society Cuts Interest Rates on Buy-to-Let Mortgages

Skipton is offering a range of buy-to-let mortgages on two and five-year fixed rate terms, with purchase and remortgage products priced separately for 60%, 70% and 75% loan-to-value (LTV) bands.

The new buy-to-let range for property purchase includes five-year fixed rates at 3.69% at 70% LTV and 3.89% at 75% LTV, both with £995 fees.

For those looking to remortgage, the two-year fixed rate range includes a 2.19% deal at 60% LTV with a £1,995 fee, a 2.49% deal at 60% LTV with a £995 fee and a fee-free 3.19% rate at 60% LTV.

The five-year series includes a fee-free 4.17% deal at 75% LTV.

All remortgage products offer a free valuation and standard legal fees, while all purchase products include a free standard valuation.

The Head of Products at Skipton, Kris Brewster, explains why the building society decided to launch the new range: “Thanks to our prudent approach to lending, buy-to-let has always been a valuable and high-performing part of our mortgage portfolio. Our buy-to-let deals continue to prove popular and we are delighted to offer this refreshed fixed rate buy-to-let mortgage range with lower interest rates.

“We believe the 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.”1

From 1st April, buy-to-let investors and second homebuyers will be charged an extra 3% Stamp Duty on properties worth over £40,000. As many landlords are already rushing to invest in the sector, could one of these buy-to-let mortgages help you beat the deadline? 

1 https://www.landlordtoday.co.uk/breaking-news/2016/2/skipton-cuts-btl-mortgage-interest-rates

First Time Buyer Mortgages Outnumber Buy-to-Let Loans by Three to One

Published On: February 17, 2016 at 9:26 am

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Despite an increase in buy-to-let lending last year, first time buyer mortgages outnumbered landlord loans by three to one, according to data from the Council of Mortgage Lenders (CML).

First Time Buyer Mortgages Outnumber Buy-to-Let Loans by Three to One

First Time Buyer Mortgages Outnumber Buy-to-Let Loans by Three to One

In 2015, 311,700 mortgages were approved for first time buyers. Although this figure is the same as 2014’s number, the amount borrowed, £46.7 billion, was the highest since 2007.

Home movers took out 365,800 mortgages for house purchase, down slightly on 2014 (0.2%). However, the amount was up, at £72.1 billion – again, the highest since 2007.

Buy-to-let mortgages increased by both volume, by 28%, and by value, up 39%, which was also the highest recorded since 2007.

Just 41% of buy-to-let loans were for house purchase, amounting to £15.6 billion.

The Managing Director of Paragon Mortgages, John Heron, comments on the data: “A common accusation levelled at buy-to-let landlords is that they have an unfair advantage over homebuyers.

“The data would suggest this is not the case, with buy-to-let purchases making up only 11.6% of all purchases.

“First time buyers accounted for three times as many transactions as buy-to-let purchasers.”1

While this may sound like good news for generation rent, since the start of this year, buy-to-let landlords have been flooding into the property market in a bid to beat the 1st April deadline for an increase in Stamp Duty. The figures for the first half of 2016 are likely to be very different.

Separate data from the Office for National Statistics (ONS) found that the average house prices across the UK ended last year at £301,000 in England, £175,000 in Wales, £193,000 in Scotland and £148,000 in Northern Ireland.

The highest average property price in England was unsurprisingly in London, at £536,000, and the lowest was in the North East, at £155,000.

The ONS reports that annual house price inflation was 7.3% in England in 2015, 1% in Wales, -0.2% in Scotland and 1.5% in Northern Ireland.

1 http://www.mortgageintroducer.com/cml-data-proves-buy-to-let-isnt-out-of-hand/#.VsQ7o1tLH8s

Buy-to-let approvals soar ahead of tax changes

Published On: February 11, 2016 at 10:48 am

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The forthcoming stamp duty changes have been the catalyst behind buy-to-let approvals soaring in January.

Figures from research conducted by esurv shows that in January, there were 85,432 house purchase approvals. This represented a rise of 20.6% month-on-month. In addition, this was the highest number of monthly house purchase approvals since October 2007, when 87,594 were recorded.

Annually, house purchase lending has risen by 39.3%.

Rush

‘Buy-to-let approvals contributed to the growth in January home lending,’ noted Richard Sexton, director of e.surv charterted surveyors. ‘Concerns about the sector’s growth have sparked a wave of legislation but as stamp duty changes come into effect this April, there’s been a rush to get buy-to-let loans approved. Many have predicted a narrowing of the buy-to-let sector but actually what we’re seeing in lending quarters appears to be the opposite.’[1]

‘This buy-to-let rise also hasn’t been at the expense of first-time buyers. The number of small-deposit loans granted has risen in January and this is a great sign that lenders still have the appetite to give first-timers a chance. Rising wages and a delayed interest rate rise have also boosted first-timer’s prospects. For those investing in a second property it’s also a race to beat April’s legislation-adding an extra boost to overall house purchase approval levels,’ Sexton continued.[1]

Climbs

In addition, small deposit lending climbed in January to reach 12,388 loan approvals. This was an improvement on the 11,546 recorded in December. Annually, this figure rose substantially from the 9,385 small-deposit loans given in January 2015.

Despite January seeing a numerical increase in the total of small-deposit loans granted, this may not necessarily mean an increase in sales. The most recent First Time Buyer Tracker from Your Move and Reeds Rains indicates that in December 2015, there were 26,600 first-time buyer sales. This represented a 4.7% decrease from the 27,900 seen in November.

What’s more, the proportion of total lending compromised by small-deposit approvals in January fell to 14.5% from 16.3% in November and December 2015-forming the smallest proportion since the 13.9% in December 2014.

Buy-to-let approvals soar ahead of tax changes

Buy-to-let approvals soar ahead of tax changes

Bright outlook

Mr Sexton feels, ‘ a buy-to-let surge has pushed down the proportion of small-deposit lending-but this figure conceals a more realistic and upbeat picture. In fact, January has been a positive month for small-deposit borrowers-the number of loans approved have reached their highest total for four months, since September 2015. And the slowdown in small-deposit lending seen towards the end of 2015 hasn’t continued into 2016 so far.’[1]

For first-time buyers, prospects are looking bright. Government initiatives introduced to help first-timers onto the property ladder appear to be working. According to the Treasury, large numbers of aspiring homeowners have taken advantage of the Help to Buy ISA and this is an incredibly promising start,’ he added.[1]

Concluding, Sexton acknowledged that, ‘challenges do remain, supply issues are ongoing and the promise of starter homes may take longer to be realised, but for first-time buyers, lenders remain willing to support

[1] http://www.propertyreporter.co.uk/finance/btl-approvals-hit-nine-year-high.html

 

New buy-to-let lender enters the market

Published On: February 5, 2016 at 12:35 pm

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A new buy-to-let lender has today entered the market.

New Street Mortgages is to launch its initial products with distribution open to customers via London & Country and the LSL mortgage networks of Pink and First Complete.

Fees

The lender will offer procuration fees of 0.5% on buy-to-let mortgages and has plans to extend its distribution outlets and offers later on in the year.

New Street’s lending process offers online decision-making, in conjunction with a broker portal that offers real-time case tracking. In addition, the service will offer access to underwriter notes. The firm says that by using this process, it will be possible for some customers to secure a mortgage inside five days.

In addition, there will be an ‘Advance’ range, which can analyse market sector risk and borrower profiles, in order to provide customers with a better deal where client circumstances permit.

New buy-to-let lender enters the market

New buy-to-let lender enters the market

Modern

Adrian Whittaker, Sales Director at New Street Mortgages, stated, ‘mortgage lending is ripe for modernization-and that’s what New Street is all about. The mortgage application process has not kept up with the technological advances that we have seen in other industries, for broker and customer alike, which means getting to the mortgage decision can be slow and uncertain.’[1]

‘If you combine this with the extra time that brokers need to invest in every application following the MMR, it often feels that writing mortgages is harder now than it has been in the past. At New Street, we believe that the mortgage application process should be digital, modern and transparent-and beneficial for brokers and customers alike,’ he continued.[1]

‘New Street Mortgages’ analytically-driven and modern approach to the mortgage process is bringing mortgage lending into the digital age, promising transparent decision-making and tailored solutions which cater to the individual needs of today’s consumers,’ noted David Finlay, Director of Distribution at Northview Group.[1]

‘As part of the Northview Group, New Street’s launch will complement the existing focus of Kensington Mortgages and position the Group as a brand which caters for borrowers across the mortgage market. Mortgage lending has become a slow and time-consuming process, but New Street’s use of intelligent data-driven credit profiling will offer the market fast and consistent decision-making to more straightforward cases,’ Finlay conclude

[1] http://www.propertyreporter.co.uk/finance/new-btl-lender-launches.html