Посты с тэгом: mortgage products

Buy-to-let mortgage products rise by 149% in 2 years

Опубликовано: July 12, 2017 в 2:25 pm

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The number of buy-to-let mortgage products available in the UK market has risen by 149% over the past two years, according to the latest research from Mortgage Brain.

A further 2,634 deals for landlords have been produced for the market, from the 1,058 seen in June 2015.

Rises

In all, the number of mortgage products available to advisors has risen by 108% from June 2015 to June 2017. This is an extra 5,172 deals introduced.

There has also been a 48% rise in product numbers over the last year, taking the number of live mortgage products from mainstream lenders listed on Mortgage Brain’s systems.

Mark Lofthouse, Chief Executive of Mortgage Brain, noted: ‘The rapid increase in product availability over the past two of years is not only great news for mortgage advisers but a clear indication of the significant improvements the UK mortgage market has made in terms of product choice and availability.’[1]

Approved Mortgage loan application with rubber stamp

Buy-to-let mortgage products rise by 149% in 2 years

‘There are now over 5,000 more products available, and with strong rises being seen across all areas, advisers now have more opportunities to source and advise on a greater variety of products, and importantly, continue to meet the changing needs of their clients and their mortgage requirements,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/7/number-of-btl-mortgage-deals-up-149-in-two-years

 

Two mortgage lenders cut BTL rates

Опубликовано: October 4, 2016 в 11:56 am

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A brace of buy-to-let mortgage lenders have today announced changes and additions to their existing products.

Both Virgin Money and Aldermore have made the alterations, as competition in the market remains fierce.

Cuts

Virgin Money has announced cuts to both its buy-to-let and residential products. A new £300 cashback incentive has also been launched for customers taking advantage of selected two, three and five-year fixed rate deals.

Key alterations to buy-to-let rates at Virgin include:

  • a two-year fixed rate deal with up to 70% LTV, reduced to 2.09%.
  • a five-year fixed rate deal up to 70% LTV, reduced to 3.24%
  • a two-year tracker rate deal up to 75% LTV, reduced to 2.29%

Peter Rogerson, Virgin Money’s Commercial Director for Mortgages, noted: ‘The reductions we have made to our range ensure that we continue to offer attractive options for purchase and remortgage customers looking for residential and buy-to-let loans at a range of different deposit levels. We think these products will be well-received by the market which remains upbeat, as reflected in our recent poll of intermediaries where nearly 80% said they expect the mortgage market to grow in 2017.’[1]

Two mortgage lenders cut BTL rates

Two mortgage lenders cut BTL rates

Limited edition

Aldermore has also launched a range of limited edition buy-to-let mortgage products for investors looking for loans of up to £1m.

Rates on the firm’s five-year fixed rate deals have been cut by up to 0.74%.

New rates begin from:

  • 79% at up to 70% LTV
  • 99% at up to 75% LTV
  • 25% at up to 80% LTV

In addition, a new term variable rate buy-to-let mortgage is available at 3.68%, up to 75% LTV.

Charles Haresnape, group managing director of mortgage at Aldermore, said: ‘The change in the base rate has led to the average five-year fixed rate for a 75% loan-to-value buy-to-let mortgage falling below 4% for the first time and now is a great time for landlords to remortgage some or all of their portfolios.’[2]

‘Buy-to-let as an investment continues to be underpinned by strong fundamentals, with tenants who signed up to a new tenancy during the month of August agreeing to an average rental increase of 3.1% year on year. Aldermore looks to support landlords wherever possible, and our recent product changes are a testament to our commitment to those in the buy-to-let market,’ he added.[2]

 

[1] http://www.propertyreporter.co.uk/finance/btl-rates-cut-060-at-virgin.html

[2] www.landlordtoday.co.uk/breaking-news/2016/9/new-five-year-fixed-b2l-range-launched-by-aldermore

 

Beware! Low Mortgage Rates Have Frightening Fees

Опубликовано: October 29, 2015 в 2:51 pm

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As if we need more fear-inducing facts at this time of year! Moneyfacts.co.uk has revealed that the true cost of low rate mortgages is frightening.

Beware! Low Mortgage Rates Have Frightening Fees

Beware! Low Mortgage Rates Have Frightening Fees

New research from the website found that too many borrowers opt into low rate products mistakenly believing that they will save them money.

However, the study shows that many would be better off choosing a deal with no arrangement fee over a lower rate deal.

Finance Expert at Moneyfacts, Charlotte Nelson, explains why: “Whilst these low deals look great on paper, they are often compensated by high fees that can scare even the most seasoned borrower.

“With fees on mortgages ranging from nothing all the way up to £2,794, with the average mortgage fee sitting at £939, it is easy to see why it can be a costly mistake to opt for the wrong deal.”

She states that low rate high fee products favour borrowers buying properties at the high end of the market.

She continues: “However, large fees can turn what appears to be a cheap deal into a costly one for the majority.

“For example, by opting for the lowest two-year fixed rate mortgage at 60% LTV with no fee will mean borrowers will be around £1,500 better off a year compared to the lowest option in that sector.

“Arrangement fees allow providers to have greater flexibility in what rate they offer, however, the set up costs are not greatly different between mortgages, so many will question what this is actually for.”

Nelson reports that the size of the arrangement fee is particularly important on two-year fixed rate deals, due to the short-term nature of the product: “Borrowers will have to remortgage relatively soon and could again pay yet another fee.”

She urges borrowers to calculate the true cost of their loan: “There are deals out there with no arrangement fee, so borrowers will have to decide whether they choose a trick or treat when picking a mortgage.”1

Don’t be caught out by high fees, make sure you work out how much the loan will actually cost you.

1 https://www.introducertoday.co.uk/breaking-news/2015/10/cheap-mortgages-come-with-frightening-costs

Fee-Free Buy-to-Let Mortgage Products Rise

Опубликовано: October 29, 2015 в 10:32 am

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The amount of arrangement fee-free buy-to-let mortgage products increased in the third quarter (Q3) of this year, revealed data from Mortgages for Business (MAB).

Fee-Free Buy-to-Let Mortgage Products Rise

Fee-Free Buy-to-Let Mortgage Products Rise

The figures from the latest Buy-to-Let Mortgage Costs Index show that 17% of products in Q3 were offered without lender arrangement fees, up from 13% in Q2. Flat fee products dropped slightly from 47% of all buy-to-let mortgages to 46% over the same period.

The greatest declines were experienced on products with percentage-based fees, falling from 40% of all buy-to-let products in Q2 to 37% in Q3.

Charges, including arrangement fees, valuation fees and legal costs, have continued to have a negative impact on total costs. On average, they now add an extra 0.48% to the headline rate, down from 0.52% in Q2. When the index first launched however, in Q1 2013, the average was 0.67%.

These decreases were also witnessed in the high loan-to-value (LTV) sector, which has previously seen an average 0.9% added to the headline rate. In Q3 2015, the average additional cost on high LTV rates was down to 0.67% after three consecutive falling quarters.

The study also found that despite absolute product numbers by initial term – one to five-year rates and loan term products – rising across all categories, the market share of two-year loans has dropped annually from 54% in Q3 2014 to 43% now.

Longer term products, especially three and five-year rates, have increased their market share, gaining 9% of the market between them.

Finance Director at MAB, Simon Whittaker, comments: “The recent falls in swap rates, almost back to levels similar to the start of the year, have helped lenders trim prices, but whilst they continue to be attracted to the buy-to-let space, they are having to be ever more creative to find the balance between maintaining their margins and offering competitive products.

“When looking at the market and the wider economy, the balance seems to have tilted towards there being no increase in bank rate for quite a few months yet.”1 

1 https://www.landlordtoday.co.uk/breaking-news/2015/10/fee-free-btl-products-increase

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leeds BS announce new mortgage deals

Опубликовано: October 7, 2015 в 2:45 pm

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Leeds Building Society has made additions to its Help to Buy equity remortgage portfolio, announcing two competitive fee-free, two year fixed-rate products.

The new mortgage begins at 2.29% and are available up to 75% LTV, for loan amounts between £150,000 and £300,000. In addition, there is a 2.39% deal, again up to 75% LTV, with a maximum loan size of £150,000.[1]

Both fee-free mortgage deals come with £1,000 cahsback, have a free valuation worth up to £560 and are available through intermediaries for borrowers across England, Scotland and Wales.

Attractive

The new mortgage is available to remortgage customers only. Earlier in 2015, the Society was the first lender to accept remortgage applications from HTB equity borrowers.

Leeds BS announce new mortgage deals

Leeds BS announce new mortgage deals

‘Two years on from the launch of the Help to Buy equity scheme, lots of borrowers will be coming to the end of their initial deals and seeking a competitive remortgage package,’ said Martin Richardson, Leeds Building Society’s Director of Business Development. ‘We’d expect the new fee-free versions with £1,000 cashback and free valuation to be attractive to remortgagors who are looking to keep down the cost of switching to a new deal.’[1]

‘HTB1 homeowners can remortgage to a competitive rate with Leeds Building Society and retain their existing loan size, subject to valuation, keeping the Government equity loan. Alternatively, they can choose to redeem the Government equity loan as part of their remortgage up to 90% LTV and buy the property outright, using any one of the Society’s competitive mortgages available up to 90% LTV.’[1]

[1] http://www.propertyreporter.co.uk/finance/leeds-announces-new-htb-remortgage-products.html

 

 

Number of Home Purchase Mortgage Approvals Grows

Опубликовано: September 30, 2015 в 12:02 pm

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Number of Home Purchase Mortgage Approvals Grows

Number of Home Purchase Mortgage Approvals Grows

House prices increased in September, according to the latest Nationwide report.

The building society found that the average price of a home purchased with a mortgage was £195,585, up from £195,279 in the previous month.

The price of a typical property in London is now £443,399 – more than three and a half times the price of an average home in the North of England.

Furthermore, the Bank of England (BoE) has reported that the amount of mortgage approvals for home purchase rose for the third consecutive month in August.

Last month, 71,030 mortgages were approved, compared to the average of 65,594 for the previous six months and up from 69,010 in July.

Remortgaging levels are continued to increase, with the number standing at 40,931 in August, up from the average of 35,811 over the last six months.

Additionally, the Mortgage Advice Bureau (MAB) said that in August, the amount of mortgage products grew to over 15,000 for the first time since the recession. There were 15,838 mortgage products on offer last month, up by 10% on July and the highest number since 2008.

Estate agent haart has analysed figures from its own 200 branches, finding that the average UK sold subject to contract price in August was £219,315. The typical first time buyer paid £169,259 for a home.

Both prices are higher than the same time last year, up by 7.3% and 9.9% respectively.

haart’s average London price was £507,096 during August, and it states the ratio of buyer demand to housing supply is 12.4 to 1.