Posts with tag: mortgage rates

Paragon Mortgages Launches New Products for 2017

Published On: January 9, 2017 at 11:22 am

Author:

Categories: Finance News

Tags: ,,,,

Specialist lender Paragon Mortgages has launched new products for 2017, enabling landlords to plan their finances for the coming years.

Paragon Mortgages Launches New Products for 2017

Paragon Mortgages Launches New Products for 2017

The new products are available for both buy-to-let property purchases and remortgages. They benefit from current low market rates and offer an ideal opportunity for landlords who are looking to refresh and organise their finances in 2017.

The range of new products includes two and five-year fixed rate options.

The new five-year fixed rate products will be of particular interest to landlords looking for payment stability over the long-term, especially in the face of forthcoming changes to tax relief for individual landlords.

Paragon Mortgages will now offer a 3.75% five-year fixed rate option for landlords borrowing up to 75% loan-to-value (LTV).

Importantly, these longer term fixed rate products also feature interest coverage ratios starting at 125% and are graduated to reflect each landlord’s individual tax status.

Other highlights within the range of new products include a two-year fixed rate deal at 3.25% for lending up to 65% LTV, and another at 3.40% for lending up to 75% LTV.

The Managing Director of Paragon Mortgages, John Heron, comments: “The first quarter is an extremely busy time in the buy-to-let market, as landlords review their portfolios and plan for the year ahead.

“The tax changes being introduced in April make it more important than ever for landlords to think ahead and minimise costs where possible. These products offer landlords the opportunity to put in place longer term mortgage finance, whilst taking advantage of the beneficial impact of today’s record low market rates.”

The new products arrive as a leading mortgage broker reports that rates will come down for small-scale landlords this year, but could rise for those with larger property portfolios.

It seems that now could be an ideal time to expand your portfolios or review your finances for the coming years.

Buy-to-let mortgage costs fall by 8%

Published On: September 12, 2016 at 8:57 am

Author:

Categories: Finance News

Tags: ,,,

A number of buy-to-let landlords are continuing to benefit from the ongoing reductions of mortgage costs.

Lenders across the industry are still cutting percentage points off their most generous deals in an attempt to attract more business from buy-to-let landlords looking to remortgage property.

Falls

New market analysis from Mortgage Brain shows that the costs of buy-to-let mortgages have fallen by up to 8% in the last six months.

Data from the report shows that the cost of a typical five-year fixed buy-to-let loan with a LTV of 70% is 8% less than in March 2016.

The current average rate of 2.8% indicates that there is a potential for yearly savings of £738 on a mortgage worth £150,000.

Economists have predicted that the Bank of England is likely to announce a further cut to the base rate in November. Some have forecasted that the rate could be cut to as little as 0.1%, meaning that mortgage costs could fall even further at the end of 2016.

Buy-to-let mortgage costs fall by 8%

Buy-to-let mortgage costs fall by 8%

Interesting future

Mark Lofthouse, CEO of Mortgage Brain, noted, ‘with further interest rate cuts predicted by the Bank of England it will be interesting to see what happens to mortgage rates and costs over the next few months.’[1]

‘There’s no doubt though that on the whole borrowers and potential buy-to-let investors are in a great position to take advantage of the low rates and cost reductions that we’re seeing,’ he added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/buy-to-let-mortgage-costs-down-by-as-much-as-8

New mortgage deal for BTL landlords at the Mansfield

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

Author:

Categories: Finance News

Tags: ,,,

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

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

Accord Cuts Rates on its Entire Fixed Buy-to-Let Range

Published On: August 9, 2016 at 10:34 am

Author:

Categories: Finance News

Tags: ,,,

Accord Buy to Let has reduced rates on its entire fixed rate buy-to-let range by up to 0.3% and has launched new remortgage options on its three and five-year fixed rate products.

Accord Cuts Rates on its Entire Fixed Buy-to-Let Range

Accord Cuts Rates on its Entire Fixed Buy-to-Let Range

The new buy-to-let range from the Yorkshire Building Society Group’s intermediary-only lender includes a new two-year fixed rate deal at 1.94% with a £800 fee available to remortgaging landlords at 60% loan-to-value (LTV), with a free standard valuation and standard legal fees included.

Accord Buy to Let is also offering a three-year fixed rate product at 2.64% at 65% LTV, with an £800 fee. The mortgage comes with £500 cashback on completions for landlords expanding their portfolios, along with a free standard valuation and standard legal fees for remortgages.

The lender has also updated its five-year remortgage deal, available at 3.09% at 60% LTV, with the same £800 fee and a choice of either a free standard valuation and £300 cashback on completions, or a free standard valuation and standard legal fees.

The Commercial Manager at Accord Buy to Let, Chris Maggs, comments: “We have reduced rates across our entire fixed range to ensure we are offering competitive options to suit all circumstances.

“We also hope the added incentives such as cashback on completion and free standard valuations will prove popular with brokers and landlords looking to get the most from a mortgage.”

Many landlords will be seeking the most competitive buy-to-let mortgage deals at this time, as they face tax hikes and new regulations.

As of 1st April this year, landlords must now pay an extra 3% in Stamp Duty when they purchase a rental property.

In addition, the amount of tax relief that landlords can claim on their mortgage interest payments will be cut from April next year. The change will affect many landlords, as it may push some investors into the higher tax bracket.

Furthermore, landlords must be aware of forthcoming legislative changes regarding energy efficiency. From 2018, all rental properties must have an energy efficiency rating of E or above. One investor has spoken out insisting that the Government should support landlords with these costs.

Take a look at Accord’s updated range to see whether investing further into the buy-to-let sector is viable for you.

BTL mortgage rates cut to boost market

Published On: April 15, 2016 at 11:35 am

Author:

Categories: Landlord News

Tags: ,,,,,

Mortgage lenders are cutting rates on products intended for buy-to-let landlords in a bid to give the market a boost in the wake of the stamp duty deadline passing.

Cuts

Comparison website Moneyfacts says that the average two-year fixed buy-to-let mortgage rate currently stands at 3.32%. This is down on the 3.59% recorded at the same time last year and substantially lower than the 4.03% average shown in April 2014.

The average five-year fixed rate deal for buy-to-let landlords is presently 4.0%, in comparison to 4.37% in April 2015 and 4.76% two years ago.

Charlotte Nelson, a spokeswoman for Moneyfacts, said, ‘while the new tax rules and stamp duty changes could potentially take the shine off buy-to-let investment, property is often seen as a safe bet and with rental properties in demand and rent high, buy-to-let remains an attractive proposition.’[1]

‘A year on from pension freedoms, almost £3bn has been paid out in cash lump sum withdrawals, so it’s highly likely that some of this money has been accessed with buy-to-let in mind,’ she added.[1]

BTL mortgage rates cut to boost market

BTL mortgage rates cut to boost market

Downwards

Analysts from Moneyfacts have noted that savings rates are so low that many retirees investing in buy-to-let following changes to pension rules are starting to look elsewhere. A separate investigation underlines how the majority of retiree landlords are dependent on their rental income.

Lenders are keen to avoid this group of investors to consider their options, therefore are offering some of the best rates the sector has witnessed. What’s more, rates were already low in the run up to the stamp duty changes, which has further aided the downward spiral of rents.

Concluding, Nelson said, ‘while the current pressures on the market are not yet causing rates to rise, borrowers should remember that they will now be facing tighter lending rules, including stricter affordability checks, so it is even more important for potential to seek financial advice to see if buy to let really is the right option for them.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/4/lenders-try-to-bolster-flagging-buy-to-let-market

Buy-to-Let Mortgage Rates Drop to Record Lows

Published On: April 12, 2016 at 12:04 pm

Author:

Categories: Finance News

Tags: ,,,,

Buy-to-let mortgage rates have dropped to record lows, according to data from comparison website Moneyfacts.

After learning that they will be hit with a reduction in mortgage interest tax relief and higher Stamp Duty, landlords have finally received some good news.

Figures from Moneyfacts show that mortgage lenders are cutting their rates significantly in order to encourage landlords to continue to invest in the buy-to-let sector, despite the changes.

Indeed, buy-to-let mortgage rates have been continuously decreasing over the past five years, with the fixed rate sector experiencing notable reductions. The table below shows the average rate changes across the market:

[table id=5 /]

Charlotte Nelson, a finance expert at Moneyfacts, explains the changes in the sector: “The buy-to-let market has faced intense pressure recently, but despite this, rates have continued to fall across all fixed sectors. For example, the average two-year fixed rate has fallen by 0.71% in just two years, while the average five-year fixed rate has dropped by an equally significant 0.76% over the same period.

Buy-to-Let Mortgage Rates Drop to Record Lows

Buy-to-Let Mortgage Rates Drop to Record Lows

“While the new rules and Stamp Duty changes could potentially take the shine off buy-to-let investment, property is often seen as a safe bet, and with rental properties in demand and rent high, buy-to-let remains an attractive proposition.”

Nelson also suggests that pensioners are boosting the buy-to-let sector, as many take advantage of the new freedom rules introduced in April last year. During the past 12 months, almost £3 billion has been paid out in cash lump sum withdrawals, according to the Association of British Insurers.

Nelson believes it is “highly likely that some of this money has been accessed with buy-to-let in mind.”

She continues: “Savings rates are currently so poor that many are looking elsewhere to fund their retirement, so lenders have tried to capitalise on this new pool of cash by offering some of the best rates the buy-to-let sector has ever seen.

“In addition, providers also cut rates in the run-up to the Stamp Duty changes in order to attract those keen to buy before they were implemented, which has further aided the downward slide in rates. However, while the current pressures on the market are not yet causing rates to rise, borrowers should remember that they will now be facing tighter lending rules, including stricter affordability checks, so it is even more important for potential landlords to seek financial advice to see if buy-to-let really is the right option for them.”1

Despite many changes affecting the buy-to-let sector, including stricter affordability checks as a result of the European Union’s Mortgage Credit Directive, Nova Financial’s Paul Mahoney insists that buy-to-let “is not dead”, and explains how the forthcoming changes will impact your lettings business: /contrary-to-popular-belief-buy-to-let-is-not-dead-insists-finance-firm/

1 http://moneyfacts.co.uk/news/buy-to-let/buy-to-let-providers-slash-mortgage-rates/