FREE tenancy agreement
FREE landlord softwareA recent glance of the BBC's website provided me with the apocolyptic headlines for landlords that the buy-to-let housing market is now closed.
Where do buy-to-let landlords go for their landlord insurance?These were the conclusions of the boss of nationalised bank Bradford & Bingley during scrutiny from a committee of MPs.
Executive chairman Richard Pym said that so many deals had been withdrawn that the market was completely different to a year ago.
He also said a higher proportion of B&B's customers were in arrears compared with the industry average.
The comments were made in a Treasury Committee banking inquiry hearing.
The bank has been the biggest operator in the UK buy-to-let market in recent years.
B&B, which had its mortgage business nationalised in September, has a £40bn loan book.
Some 60% of these mortgages are buy-to-let customers and another 20% are self-certified mortgages, which are common among people such as the self-employed.
Buy-to-let mortgage arrears
Mr Pym told the committee that at the end of September the proportion of borrowers in arrears on their mortgages stood at 3%, higher than the industry average.
I believe you have inherited a shambolic organisation with a giant headache
John McFall, Treasury Committee chairman
He expected the number of staff dealing with arrears inquiries to double, from the 200 employed in August, by the time arrears levels hit their peak next year.
The buy-to-let market is expected to be worse hit than the residential mortgage market. Mr Pym, however, said the recent cut in the Bank rate to 3% would have a "significant effect" on assisting landlords, assuming rents did not also fall dramatically.
Executive chairman Richard Pym said that so many deals had been withdrawn that the market was completely different to a year ago.
He also said a higher proportion of B&B's customers were in arrears compared with the industry average.
The comments were made in a Treasury Committee banking inquiry hearing.
The bank has been the biggest operator in the UK buy-to-let market in recent years.
B&B, which had its mortgage business nationalised in September, has a £40bn loan book.
Some 60% of these mortgages are buy-to-let customers and another 20% are self-certified mortgages, which are common among people such as the self-employed.
Buy-to-let mortgage arrears
Mr Pym told the committee that at the end of September the proportion of borrowers in arrears on their mortgages stood at 3%, higher than the industry average.
I believe you have inherited a shambolic organisation with a giant headache
John McFall, Treasury Committee chairman
He expected the number of staff dealing with arrears inquiries to double, from the 200 employed in August, by the time arrears levels hit their peak next year.
The buy-to-let market is expected to be worse hit than the residential mortgage market. Mr Pym, however, said the recent cut in the Bank rate to 3% would have a "significant effect" on assisting landlords, assuming rents did not also fall dramatically.
Verdict
1. Godiva Mortgages are doing a 5.34% headline rate up to 30.09.13 based on the lender btl svr
Max LTV is only 65% and only for professional landlords
2. BM Solutions will stretch to 75% and have no restrictions on portfolio size so great for professional landlords. They offer a 6.19% pay rate which is Bank of England Base Rate (BBR) + 3.19% for 3 years.
3. Cheltenham & Gloucester are also doing a similar BBR + 3.19%
4. Bank of Scotland Mortgages are doing a BBR + 3.24% until 31.01.12
5. For landlords with green credentials they could try the Ecology Building Society who are offering their standard variable rate of 6.70% for the term of the buy-to-let mortgage. With only a £350 application fee & upto 80% prepared to get knocked over in the stampede!
6. The other building society offering a rate based on their SVR is National Counties BS whos BTL SVR currently stands at 7.05%
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