Posts with tag: buy to let mortgages

LendInvest Launches New 3-Year Bridge Product

Published On: June 9, 2017 at 9:20 am

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LendInvest, the leading specialist mortgage lender, has launched a new three-year bridge product as a funding alternative to a conventional buy-to-let loan.

LendInvest Launches New 3-Year Bridge Product

LendInvest Launches New 3-Year Bridge Product

The three-year bridge loan has been specifically designed for experienced borrowers who are looking to raise capital or are looking to acquire a lower yielding property.

Interest on the three-year bridge product is charged at 6.99% per year, at a pay rate of 4.99% with 2% interest deferred.

It is available on loans worth between £100,000 and £2m, and is offered on terms from one to 36 months.

The maximum loan-to-value ratio (LTV) of the three-year bridge product is 70% on day one, rising to 75% as interest on the loan is deferred and rolled up.

There is also an 11% minimum interest cover.

The Chief Commercial Officer at LendInvest, Matthew Tooth, comments on the launch: “Following an influx of enquiries from borrowers seeking to purchase or raise additional capital against a low yielding property, we developed this product with this niche audience in mind. The three-year bridge acts as an alternative to a mainstream buy-to-let product, tailoring a traditional bridging loan for a longer term.”

The launch marks further expansion of the LendInvest product range. The three-year bridge loan is LendInvest’s third product launched this year, following the successful rollout of pre-construction finance in April and refurbishment finance in February.

Research from Paragon Mortgages revealed yesterday that there has been an increase in demand for specialist residential mortgage products.

Meanwhile, another study has found that landlords still have an appetite for future property investments, despite the Government’s recent and ongoing reduction in tax relief on their finance costs.

Are you looking to invest further in the property market? Perhaps the new offering from LendInvest could be the right loan for you.

Remember to take the Government’s tax changes into account when taking out a buy-to-let mortgage.

Mortgage Arrears have Dropped to the Lowest Quarterly Rate on Record

Published On: May 12, 2017 at 9:47 am

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The level of mortgage arrears has dropped to the lowest quarterly rate on record, found a new study by the Council of Mortgage Lenders (CML).

Mortgage Arrears have Dropped to the Lowest Quarterly Rate on Record

Mortgage Arrears have Dropped to the Lowest Quarterly Rate on Record

The research recorded 92,600 mortgages in arrears, representing 0.84% of all mortgages, in the first quarter (Q1) of this year.

This level of mortgage arrears is down by 10% on an annual basis.

However, those borrowers with mortgage arrears of more than 10% did see a slight rise, to 26,500.

In line with the usual trend, the number of buy-to-let mortgage arrears was lower than the owner-occupier rate, at 5,000, although the repossession rate was higher.

This is because of the high level of forbearance that lenders typically seek to extend to homeowners, to try to enable them to resolve their difficulties and keep their homes wherever possible.

The Director General of the CML, Paul Smee, comments on the mortgage arrears figures: “This positive picture of mortgage performance is good news, and reflects a continuing benign interest rate and employment environment.

“However, it is important that borrowers continue to think about the future and how they would cope with less positive conditions, even if that scenario seems distant.

“Lenders will always work with borrowers to try to help them through the inevitable periods of difficulty that life may throw at them, such as periods of unemployment, illness or relationship breakdown.”

Brian Murphy, the Head of Lending at the Mortgage Advice Bureau, also responds to the data: “This is positive news, but we also need to recognise that, what with everything that’s currently occurring in terms of political and economic climate, borrowers do need to factor into their household budgets that interest rates will, at some point in the future, move upwards.”

Landlords, remember that if you have a buy-to-let mortgage, the amount of tax relief that you can claim on interest costs is being cut to the basic rate of Income Tax.

Find out more about the changes here: /government-guide-tax-relief-changes-residential-landlords/

Keystone Adds New Three-Year Fixed Rate But-to-Let Mortgage

Published On: May 11, 2017 at 8:25 am

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Keystone Adds New Three-Year Fixed Rate But-to-Let Mortgage

Keystone Adds New Three-Year Fixed Rate But-to-Let Mortgage

Specialist lending brand Keystone Property Finance has added a new three-year fixed rate buy-to-let mortgage deal to its Classic Range. Priced at just 3.69% at 65% loan-to-value (LTV), it is now the lowest priced product in the selection.

This rate is being offered to landlords regardless of whether they choose to invest personally or through a limited company. And, unlike many buy-to-let lenders, it is available to trading limited companies as well as Special Purpose Vehicles (SPVs).

Perhaps crucially for many investors using corporate structures, Keystone does not impose an upper age limit to qualify for finance.

Older investors borrowing personally also find Keystone a viable option, as its criteria stretches to borrowers up to 85-years-old at the end of the mortgage term.

David Whittaker, the CEO of Keystone, comments: “The rate is available on standard buy-to-let property to landlords with slightly larger deposits who are looking to borrow between £50,000 and £750,000. It sits nicely beside our other three-year fixed rates, each of which are targeted at landlords with specific needs. For example, we have a three-year fixed rate at 4.29% designed for HMOs [Houses in Multiple Occupation] with up to eight bedrooms and multi-units with up to ten flats. We also have options for landlords with higher LTV requirements.”

Keystone is an intermediary-only lending brand, which boasts criteria aimed at investors typically with more complex borrowing scenarios. It is one of the few lenders that will allow remortgages within six months of purchase, and will consider a wide range of non-standard properties, including flats above commercial premises and new build flats.

Full details of all Keystone’s rates can be found online here: www.keystonepropertyfinance.co.uk

Are you thinking of investing further in the buy-to-let sector? Take a look at Keystone’s offerings, including the new three-year fixed rate deal, to find out what it can do for you.

Buy-to-let rates beginning to rise

Published On: May 9, 2017 at 10:00 am

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The most recent report from Mortgages for Business shows that buy-to-let fixed rates increased in April, for two, three and five-year terms.

In fact, only five-year fixed rates failed to return to their February averages, staying just 0.01% lower at 3.76%.

This is the first month since January that any rises have been seen in rates, for both fixed and variable products.

Falls

Three-year fixed rate terms have consistently fallen for a longer period- between April 2016 and March 2017. In this period, the typical three-year fixed rate slipped from 4.50% to 3.53%, with a new record low seen in every month from June.

Despite April bringing an increase in fixed rates, particularly for shorter terms, no visible pattern emerged among variable rate products. Five and two-year tracker rates rose by 0.02% and 0.12% respectively, but others fell.

Buy-to-let rates beginning to rise

Buy-to-let rates beginning to rise

Three-year variable rates fell by 0.02%, but term product rates slipped by 0.11%.

Steve Olejnik, COO of Mortgages for Business, commented: ‘For some time now buy-to-let mortgage lenders have been cutting rates to maintain lending volume in a sector that has been actively targeted by both the taxman and the regulator. Rates can only fall so far, however, and figures from April suggest we may have reached the limit.’[1]

[1] http://www.propertyreporter.co.uk/landlords/btl-rates-are-starting-to-rise.html

 

 

TSB Reduces Rates on Mortgage Products to Improve Presence in Buy-to-Let Market

Published On: May 5, 2017 at 9:32 am

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TSB Reduces Rates on Mortgage Products to Improve Presence in Buy-to-Let Market

TSB Reduces Rates on Mortgage Products to Improve Presence in Buy-to-Let Market

TSB has reduced its rates by up to 0.25% on a selected number of mortgage products, in a bid to improve its presence in the buy-to-let market by offering more competitive deals.

New products include two-year fixed rate deals for property buyers and remortgage borrowers, with rates cut by between 0.2-0.25%.

Meanwhile, the three-year fixed rate for property buyers and remortgage borrowers has been cut by between 0.1-0.15%, excluding the no fee 60% loan-to-value (LTV) product.

TSB has also reduced the five-year fixed rate product for property buyers and remortgage borrowers by between 0.15-0.25%.

The two-year tracker rate for property buyers and remortgage borrowers has also been cut by between 0.2-0.25%.

The Mortgage Distribution Director at TSB, Roland McCormack, comments: “TSB helped over 14,000 people with their mortgages in the first three months of 2017 and provided £2.2 billion of new mortgage loans.

“We are committed to helping people borrow well, and these rate cuts across the LTV ranges are an example of us doing exactly that.”

Paragon Mortgages has recently updated its buy-to-let range to focus on the longer term plans of landlords. Meanwhile, specialist lender Investec Private Banking is targeting high net worth property investors with a new range of buy-to-let products.

The latest study by the Bank of England shows that mortgage rates dropped yet again in March, taking the average to a new record low.

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

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

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

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.