Posts with tag: finance

LendInvest Launches New 3-Year Bridge Product

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

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

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

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.

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

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

Author: Em Morley

Categories: Finance News

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

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.

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

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

Author: Em Morley

Categories: Finance News

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

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.

Mortgage Rates Continued to Drop in March, Reports BoE

Published On: May 5, 2017 at 8:07 am

Author: Em Morley

Categories: Finance News

Tags: borrowers,finance,housing market,mortgages

The Bank of England (BoE) has released its latest Money & Credit Report for March, revealing that mortgage rates continued to drop yet again in the month before last.

Mortgage Rates Continued to Drop in March, Reports BoE

Average mortgage rates fell yet again in March, with two, three and five-year rates at 75% loan-to-value (LTV) all reaching record lows.

The Executive Director of the Intermediary Mortgage Lenders Association (IMLA), Peter Williams, explains what this means for the housing market: “Lower mortgage rates reduce borrowers’ monthly payments, thereby boosting housing affordability and easing the effects of high prices. This improving affordability is illustrated by the fact that the amount borrowers spend on paying off mortgage interest is at a low; in 2016, home movers spent an average of 7.2% of their income on interest payments, while first time buyers spent an average of 9.1%. Many borrowers will also rightly look to capitalise on the fall in the average 10-year mortgage rate, and secure a long-term deal.”

Nevertheless, he highlights that the price of higher LTV products continued to rise in March, taking the average rate on a two-year fixed rate mortgage at 95% LTV to 3.99%.

“Higher LTV products are essential to providing borrowers with modest deposits with the opportunity to get a foot on the property ladder, and rising prices in this segment of the market could stretch affordability,” Williams says. “Ensuring that the housing market is open to a wide range of borrowers should be a key objective of both policymakers and industry, and it is therefore important that higher LTV products are accessible.”

Looking ahead, Williams predicts: “IMLA expects total gross mortgage lending to reach £260bn in 2017, which is 5.9% higher than the £245bn recorded in 2016. The market has been supported by high levels of public demand for housing from a variety of different customer profiles. Furthermore, low mortgage rates and relatively modest levels of inflation have instilled borrowers with confidence, and made them willing to take out loans for purchase.”

Are you confident in the future of the mortgage market?

Any landlords looking to take out buy-to-let loans must be aware of the Government’s recent phasing out of mortgage interest tax relief. These changes will restrict the amount of mortgage interest (and other finance costs) that investors can offset against tax.

Paragon Updates Buy-to-Let Range with Longer Term in Mind

Published On: May 3, 2017 at 9:09 am

Author: Em Morley

Categories: Finance News

Tags: buy to let mortgages,finance,landlord taxes,mortgages

Paragon Updates Buy-to-Let Range with Longer Term in Mind

Paragon Mortgages has updated its buy-to-let range with longer term products in mind, for both property purchases and remortgages.

The fixed rate products, which are available to individual landlords and limited companies, include two and five-year fixed rate deals for self-contained units, Houses in Multiple Occupation (HMOs) and multi-unit blocks (MUB).

As landlords continue to put longer term plans in place – with the phasing in of the Government’s reduction in mortgage interest tax relief now underway – highlights of the updated range include two five-year fixed rate products and a five-year stepped fixed rate deal.

Available from today is a five-year fixed rate product at 3.75%, with a 1.50% product fee at 75% loan-to-value (LTV) for single self-contained units, and a five-year fixed rate deal at 3.85%, with a 1.50% product fee at 75% LTV for HMOs and MUB.

The five-year stepped fixed rate product is at 3-4%, with a 2% product fee at 75% LTV for each property type.

Interest coverage ratios on these products are unchanged, starting at 125% at 4%, graduated to reflect each landlord’s individual tax status.

In addition to these new longer term offerings, the specialist lender’s range of shorter term, two-year fixed rate products has also been refreshed, with highlights including a two-year fix at 3.20% for lending up to 65% LTV, and another at 3.30% for lending up to 75% LTV.

The Managing Director of Paragon Mortgages, John Heron, comments on the updated range: “Our range of mortgage products is designed with a diverse market in mind, catering for different types of landlords with individual requirements.

“With the tax changes now being phased in, and continued challenges for landlords over the long term, these products support long term planning and reflect the trend we’ve seen of a preference towards longer term fixed rates.”

Paragon Bank Finance Delivers Much Needed Housing in London

Published On: April 28, 2017 at 8:38 am

Author: Em Morley

Categories: Finance News

Tags: finance,Homes,housing,London,mortgages,property developers

Paragon Bank is celebrating the delivery of much needed housing in Catford, southeast London through its development finance loans.

Paragon Bank Finance Delivers Much Needed Housing in London

The housing scheme in London is the result of the first loan the development finance team approved over a year ago.

Since launching in November 2015 with an initial focus on residential projects across London and the South East, Paragon Bank is now funding schemes elsewhere in the country.

The homes in Catford are a result of a 16-month development worth over £1.7m, which has seen a disused office building converted into five mews houses. The terraced properties are aimed at families, and come with three bedrooms and two bathrooms.

Since launching, the development finance team has expanded beyond the South East, and now has sales representatives in both the Midlands and the north of England. The team offers competitive loans ranging from £500,000 to £10m.

The Development Finance Director at Paragon Bank, Fintan O’Riordan, says: “Progress on this development has been excellent and it is great to see the first loan we approved now delivering homes. Small-scale builders and developers have an increasing role to play in helping deliver the housing the country needs, and development finance is key to facilitating this.

“It has also been fantastic to assist a highly experienced developer on this project. Our business is based upon developing meaningful relationships with experienced developers.”

The development at Colbeck Mews, Catford is here on Rightmove: http://www.rightmove.co.uk/property-for-sale/property-58154038.html

Other features of Paragon Bank’s development finance product include:

Interest and fees defined at the outset, with no additional fees for achieving a higher sales figure on final development
Finance for up to 80% of development costs for the strongest propositions
Competitively priced senior debt funding solutions

Are you looking to get involved in a similar project? Perhaps you could deliver much needed housing in parts of the country that are suffering!