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Saturday, July 04, 2009

Sunshine Lifts Property Market - Slightly

There has been one good news story this week for those looking for some more sunshine in their lives.

Nationwide published figures that show the average price of property rose by a (seasonally adjusted) 0.9%. The three month trend is now positive for the first time since December 2007

In fact, one of our local estate agents said to me this morning that the “credit crunch” was over for him, but then again if you are looking for optimism then that’s the best place to start.

Here at Resident Broker we are still quite cautious - as we've said many times before, lending isn’t going to dramatically increase anytime soon - in fact, the next challenge will be how to deal with rising interest rates (and hence mortgage rates) and we believe expert advice will be ever more important.

Buy to Let Product Update:

Here’s a couple of buy to let mortgages for you:

BM Solutions (still here) - Interest rate: 4.7% - LTV: 75%
Product Detail: 2 year tracker at 125% rental calculation (base rate + 4.2%)

Arrangement Fee: 3% - Early Redemption Penalties: 3% in first 2 years.

Our thoughts: The lowest rental cover for 75% loan to value mortgages therefore good for low rental properties, and BM are still the most efficient and quickest. Remember, you can only have a total of 9 properties within the Lloyds Group.

Please note: Not for the faint hearted – should Bank of England base rate significantly increase, then so will your rate.

National Counties - Interest rate: 5.89% - LTV: 60%

Product Detail: Fixed until 31/05/2014 - Arrangement Fee: £2495 - Early Redemption Penalties: 5% until 31/05/2010, 4% until 31/05/2011, 3%until 31/05/2012, 2% until 31/05/2013, 1% until 31/05/2014

Our thoughts: This is a great 5 year fixed rate remortgage deal. For higher value loans it also benefits from a set arrangement fee.

01424 205 373 ref PropertyHawk for No Fees Special Deal

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