LTV continues to rise

Since the beginning of the year there has been a gradual increase in the average loan-to-value (LTV) for buy-to-let mortgages processed by Property Hawk Mortgages. At the end of the 2011 the average LTV for mortgage offers was 63.41%, the lowest it had been for two years as the choice of higher LTV products for landlords was limited.

However, the last six months has seen a significant improvement in the number of lenders and products available at up to 80% LTV and there are even some 85% LTV products currently on offer. This is great news for landlords, especially professionals who may prefer a more highly geared portfolio, which can potentially allow them to release funds to buy more properties and increase their overall returns.

In Q2 2102 the average LTV for mortgage offers at Property Hawk Mortgages was 67.30% which is the highest it has been for two years

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 029 2069 5446

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

Honest tenants - they do exist

I was woken this morning by a text from one of my tenants checking that his rent had been received after he had changed his bank and his subsequent standing order.  I've just checked and his payment has sailed unhindered into my account as per usual. This is not the first time I've had a tenant contact me to make sure that I've received my rent.  If you are suffering with 'scumbag' tenants that constantly give you the run around then hopefully my experience highlights that 'nice, honest tenants do exist'.

If you are not so lucky with your tenants remember that you have the opportunity to post your questions in our landlord legal forum to get some answers of what to do next.

Legal Advice - fixed fees

Landlord Olympics

Is there such a thing as the Landlord Olympics?  It's an absurd concept.  Would there be a category for the best tenancy agreement, perhaps the most thorough property inventory or how about the fastest check out.  Well in these competitive times when there are  award for everything.  There is such a thing as the Landlord and Letting Awards.  This award is aimed at those that excel in the private rented sector.

Now Property Hawk has never sort glory.  We are just here to help landlords with the everyday struggle of letting property profitably.  But if you do fancy voting for us in the landlord awards feel free.  I have still got a little room on my mantlepiece.

Win, lose or draw landlords should enjoy the Olympics and remember - we live in a Great Country!

Landlord Insurance - professional rates

Variable rates still in favour

Since the beginning of the year, the buy-to-let mortgage market has improved with more lenders and products now available. This has led to greater competition between providers, together with persisting low interest rates, resulting in relatively stable product pricing overall. In Q2 2012 the average variable rate was 4.10% compared with 4.07% in the previous quarter.

However, the average fixed rate for offers processed by Property Hawk Mortgages in Q2 2012 did increase more noticeably to 5.06% up from 4.82% in Q1 (the highest since the beginning of 2010), although this may reflect the wider availability of higher loan-to-value  fixed rates which tend to be priced higher.  It will be interesting to see how average fixed rate pricing varies during the second half of the year

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 029 2069 5446

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

The rental yield charts

According to new research from Paragon Mortgages top of the rental yields are currently in the Yorkshire and Humberside area, with an average rental return of 6.8%.

1. Yorkshire and Humberside (6.8%)
2. Wales (6.7%)
3. South West (6.2%)
4. South East, exc London (6.2%)
5. Outer London (6.2%)
6. The North East  a 6.1% yield and in the 
7. West Midlands (6%),
8. Central London (5.8%)
9. East of England ( 5.7%) 
10. The East Midlands (4.5%)

TOWIE landlords

The only way is Essex for landlords according to statistics from one Essex estate agents that reports that it has seen an by 85 per cent  increase in demand for investment property in the area in the past four years.

Estate agent Beresfords reports : "An increase of 85 per cent in the number of people looking for buy-to-let properties since the early credit crunch days of 2008 shows that investors are seeing this as a very viable form of long-term investment."


The main locations reporting to be popular with property investors are Chelmsford, Colchester, Brentwood and Braintree.
 Beresfords says the so-called "Generation Rent", young people priced out of buying their own homes has increased dramatically over the past five years, fuelling the demand for rental properties."

Many young professionals find themselves stuck in rental property far longer than the previous generation.

I wonder if part of the difficulty is so much of their disposable income is used funding their fake tan habit. Sorry only joking, lets see one of those glimmering white bleached smiles.

BTL mortgage best rates

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.49% Discount	2 Years	2.5%	£130.00	No	6.9% APR
80%	4.99% Fixed	Oct 31 2014	3.5% (min £595)	£0.00	No	5.6% APR
80%	4.79% Discount	2 Years	£2999	£130.00	No	8.2% APR
75%	3.85% Discount	2 Years	£2450	£250.00	No	5.4% APR
75%	4.89% Fixed	Nov 30 2014	£995	£0.00	No	5.1% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
70%	3.99% Discount	3 Years	£995	£0.00	No	5.4% APR
65%	3.89% Tracker	Sep 30 2014	£1300	£195.00	No	5.9% APR
65%	3.99% Tracker	Oct 31 2014	£999	£250.00	Free valuation up to £700 for purchases and remortgages and free legals on remortgages only.	4.8% APR
60%	3.89% Discount	Sep 30 2014	£900	£99.00	Free valuation for purchases and remortgages and free legals on remortgages only.	5% APR
60%	3.25% Discount	2 Years	£1750	£250.00	No	5.3% APR

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

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Landlords are happy...why?

Landlords are portrayed as a miserable bunch in the media.  But actually most of us are pretty happy at the moment....why?

Could it be that rents have been steadily rising....and are at a record high?  Possibly.....

Maybe it's because interest rates remain on the floor and by all accounts will remain so and not rise above the current 0.5% until August 2017.  That could mean another 5 years of record rental profits!  But that's not the reason either.

No...the real reason why landlords are so chipper is the sun is shining at long last...so enjoy

Landlord insurance - mates rates

Tenancy agreements - what are they?

Tenancy agreements are contracts between tenants and their landlords. Although in most cases it a written agreement, in law it may also be an oral one.
The principal importance of a tenancy agreement is that it spells out specific rights for both the tenant and landlord.
A landlord and tenant can also make specific arrangements that relate to the tenancy and these will be incorporated into the tenancy agreement assuming that they are legal; both the landlord and tenant are granted both legal rights and legal responsibilities, though additional rights and responsibilities may be agreed that add to the statutory rights. Any clauses in the tenancy agreement that reduces the statutory rights of either party are not legally enforceable.

Not everything needs to be included in the agreement.

The agreement should include anything that is specific to the specific tenancy, but there are also a number of implied conditions that do not need to be formally stated. For instance the landlord is obliged to undertake basic repairs, he must ensure that the supply of services, i.e. water, gas and electricity, are maintained and that the heating system operates satisfactorily. Also the landlord must not interfere with the peace of his tenants or discriminate against them or be a nuisance to them. On the part of the tenant, it is implied that he should take reasonable care of the accommodation and not damage it.

Although as stated tenancy agreements can be verbal, generally this is not advised. Although with a verbal agreement legal rights and responsibilities are enforceable, it is difficult to prove in court that any terms and conditions other than those were agreed to.

There are many companies who can help with costs of being a landlord such as insurance companies.  If you want to know more about the different types of insurance available for a landlord, or for in a home, you can find lots of information at http://www.endsleigh.co.uk

Rents to rise but values to fall

Landlords remain optimistic on rents with 61% expecting rents to rise over the next 12 months according to the latest survey by the Halifax.

However, despite this Britain faces an 'extended housing market slump, according the International Monetary Fund has said.  The IMF has warned that UK house prices are too high and should drop by 10-15%. The IMF delivered its warning after slashing its forecasts for growth in Britain by a bigger margin than for any other major economy.

Landlord insurance - internet rates

Renting to pensioners

I have always targeted my lettings at the under 40s singles and couples and this market of tenants has provided me with rich pickings over the last 20 years.  My market composed almost exclusively of tenants that didn't want to be tied down with a mortgage but had  enough money to find a place of their own.  The natural course of action being to then once they had enough money to buy they would then move on to the housing ladder and set up home.  This market is still prospering an my tenant base is rapidly ageing as my tenants have stayed longer and have deferred the next step of buying a home. (Great new for me).

A recent article has prompted me to re-examine my customer base.  Census figures show that there are now 1 in 6 of us that are 65 or over (or passed the traditional retirement age).  There are now over 9 million people over 65.  This makes me think.  Should I be looking to the future and be buying a bungalow to cater for this rapidly expanding sector of the lettings market.  Is the new essential fitting in a buy-to-let a Stannah lift rather than a power shower? I just wondered if any other landlords were thinking the same?

Mortgage Search - best rates

Is capital gain still what it's all about?

Property will make me a fortune

The early years of BTL investing was all about the yield, then it quickly became all about the capital gain. Over the past five years it's been about survival for many of us, the exception to the rule have been London and the South who have largely kept on with their jubilant property prices.

So the question is where next?

The Investor Chronicle have been writing on both the weakness in rental yields and the potential growth in property prices. Both articles are well written analysis that might be worth a look at for landlords considering their future strategies.

For me I prefer to consult my tea cup, ever since smashing my crystal ball.

Landlord fined over gas safety

Landlords should know the score over gas safety. If you have gas appliances you need to have a gas safety check (GSC) every year.  If you don't have one then you be in line for a serious fine amounting to  thousands of pounds.  Regulation 36(3)(a) of the Gas Safety (Installation and Use) Regulations 1998, states clearly that:

 "Without prejudice to the generality of paragraph (2) - covering gas fittings - a landlord shall (a) ensure that each appliance and flue to which that duty extends is checked for safety within 12 months of being installed and at intervals of not more than 12 months since it was last checked for safety (whether such check was made pursuant to these Regulations or not)."

Despite all this the London Borough of Hammersmith and Fulham managed to overlook the GSC on 21 privately leased properties between 2008 and 2010. 

This amuses me as so often Government and Councils are held up as paragons of virtue where as private landlords are lambasted as money grabbing individuals who care nothing for the welfare or safety of their tenants.  So who are tenants safest with?  Maybe the answer isn't as clear cut as detractors of the private sector like to maintain!

Landlord insurance - professional rates & cover

Labour talk tough on letting agents

Labour talk tough on regulating the letting agents in the Guardian.

Is it me or is it impossible to take politicians seriously?

Census confirms what we already knew

Data from the latest census shows that even though we have seen the largest growth in population in England And Wales since records began,  the actual number of households has seen it's  second-lowest increase in 100 years.

This underlines the  increased demand that we have seen placed on housing stock over the past ten years.

There are no indications that any changes in Government policy will effect this, in terms of immigration caps or increasing building programs.

Expect a similar set of data in a decades time.

Housing minister soft touch

Soft touch

Housing Minister Grant Shapps  has responded to calls for further regulation of letting agents by saying


 "I do not think that the time is right for Government-imposed regulation of the sector which would run the risk of increasing burdens and costs and, therefore, reducing supply and forcing up rents."


He also went on to add that the

“The last administration’s imposition of Home Information Packs is a prime example of how excessive state regulation and intervention can harm the interests of consumers.”


We do like a man with a soft touch after all those years of heavy regulation.


For those landlords who wish to use a regulated letting agent look for one who is a member of  either Association of Residential letting Agents, the National Association of Estate Agents, the National Approved Letting Scheme or the Royal Institution of Chartered Surveyors.


Choice is a wonderful thing.

Student Blocks - Plymouth - Investment Opportunity

Landlords looking for an investment and development opportunity within the student sector should check out this latest offering in Plymouth courtesy of Allsop:

Hampton Court, Plymouth University Campus, Regent Street, Plymouth
For sale by private treaty:
Prime Location
High Quality and Fully Specified
Sustainable Design
A Unique Opportunity to purchase a superb Student Housing Investment with an Excellent Potential Return
Completion Autumn 2013

Individual blocks are available at between £1.5m and £1.8m.  An opportunity exists to purchase individual blocks, each of which will comprise 6 apartments arranged as 'cluster flats' having 4 bedrooms with en-suite shower rooms arranged as open plan living area and fitted kitchen. 

Allsop will be seeking figures of between £1.5m and £1.8m for each of the completed blocks and will be seeking a deposit on commitment, with the balance to be paid on completion of the buildings. 

Click here to view a preliminary brochure describing the proposed development and further information may be provided upon request.

For further information, please contact: 


David Hammond 
Email: david.hammond@allsop.co.uk 
Tel: 020 7543 6721 


Andy Pointon 
Email: andy.pointon@allsop.co.uk 
Tel: 020 7543 6720
Mortgage Search - whole market

Which washing machine to buy?

I've had a recent call from one of my tenants.  It appears that despite a few fixes the washing machine has finally given up the ghost.  I can't really complain.  By my reckoning the Candy machine has reached the respectable age of 17 years.  So what should I go for?  Well I am a little constrained.  A minor design error when the work top was originally installed means that I have little clearance for getting most washing machines which have a standard height of 85 cm.  My normal preference is for a basic Bosch washing machine that come in around the £300 mark but I'm not sure it will fit.

Any suggestions where I can get one from?

OH happy landlording!

Landlord insurance - specialist insurers

Scottish Tenancy Deposits

Scottish Government introduces new legislation to protect tenants’ deposits

New legislation to protect tenants in Scotland comes into effect on 2nd July, with government-licensed Tenancy Deposit Protection schemes launched to bring Scotland into line with England and Wales.

Scotland has one of the highest percentages of rented properties in the UK with over a third (37%) of homes in the sector.

From 2nd July, all landlords and letting agents in Scotland who take a deposit from their tenant must submit it to the scheme within 30 working days of the beginning of the tenancy. The law applies to all existing and new deposits.

Tenancy deposit protection was first introduced in England and Wales five years ago to raise standards in the private-rented sector and it’s hoped its introduction here will do the same for Scottish tenants who until now have had no protection or guarantee over their deposit.

However, new research released today by my|deposits Scotland shows that six out of ten (63%) tenants in Scotland are not aware of Tenancy Deposit Protection (TDP) legislation.
my|deposits Scotland has been formally approved by the Government to operate a TDP scheme in Scotland having run a similar scheme in England and Wales over the past five years.

The scheme has protected £1.4billion worth of deposits on behalf of nearly 90 thousand members in England and Wales and has consistently met all targets set by the Government.
It is important that landlords, agents and tenants are provided with clear guidance on what they will be required to do and by when.

There are strict penalties of up to three-times the deposit amount for those who do not protect a tenant’s deposit under the new law meaning it’s important all involved are informed about how the scheme will affect them.

Click here to watch Eddie Hooker, CEO of my|deposits Scotland explain what the TDP legislation is, who it will affect, and what tenants, landlords and letting agents are required to do and by when.

BTL mortgage current best products

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.49% Discount	2 Years	2.5%	£130.00	No	6.9% APR
85%	5.79% Discount	2 Years	3%	£130.00	No	7% APR
80%	4.79% Discount	2 Years	£2999	£130.00	No	8.2% APR
80%	6.09% Fixed	2 Years	3%	£130.00	No	7.1% APR
75%	3.85% Discount	2 Years	£2450	£250.00	No	5.4% APR
75%	4.89% Fixed	Aug 31 2014	£995	£0.00	No	5.1% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
70%	3.74% Discount	Jul 31 2014	£899	£0.00	No	5.9% APR
60%	3.25% Discount	2 Years	£1750	£250.00	No	5.3% APR
60%	5.49% Fixed	2 Years	2.5%	£130.00	No	6.9% APR

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

---

Number of families renting doubles

According to analysis of the latest English Housing Survey statistics 1.1 million families are now renting their homes from a private landlord.  This is nearly double the figure of five years ago.

The East Midlands saw the fastest growth in private renting between 2008 and 2011 with households renting up 44% closely followed by the North West with 43% rise.

London witnesesd further growth in private renting reaching a figure of 1 in 4 households now renting privately from a landlord.


Landlord Insurance - source professional rates

Rental void periods see increase

The latest ARLA research shows that  average void periods on rental properties have increased back up to 3 weeks, the longest period since Q1 2011.

Ian Potter, Operations Manager at ARLA tried to look on the positive side by saying: “These periods without occupancy can also give a landlord a useful window to carry out routine maintenance and any additional work designed to make a property more attractive for incoming tenants.”

Whilst advising with five simple points on how best to reduce rental void periods 

• Set realistic rents
• Foster good tenant-landlord relations
• Make the property desirable
• See a void as an opportunity
• Hire a letting agent

Landlord insurance - discounted rate

PM3 in Firefox

A user asked if PM3 works well in Firefox. We do test it in Firefox, but these things are complicated so let us know if you find a problem.

Tenants in arrears up 24%

Long term tenant rent arrears are up almost a quarter (24%) over the last year according to figures from Templeton LPA.  

The Tenant Arrears Tracker study reveals that 100,400 tenants in England and Wales are in severe arrears in the 3 months to June.  Whilst rental arrears still remain an isolated problem with only 2.6% of tenants in rental arrears of 2 months or more.  The fact that figures are rising illustrate that many tenants are under financial stress as incomes reduce whilst living costs continue to rise.

For advice about what to do if your tenant stops paying the rent have a look at the Landlordsbible.

Landlord Insurance - professional rates

Most popular BTL mortgages

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.49% Discount	2 Years	2.5%	£130.00	No	6.9% APR
80%	4.79% Discount	2 Years	£2999	£130.00	No	8.2% APR
80%	4.99% Fixed	Aug 31 2014	3.5% (min £595)	£0.00	No	5.6% APR
75%	4.89% Fixed	Aug 31 2014	£995	£0.00	No	5.1% APR
75%	3.85% Discount	2 Years	£2450	£250.00	No	5.4% APR
70%	3.74% Discount	Jul 31 2014	£899	£0.00	No	5.9% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
65%	3.99% Fixed	Jul 31 2014	£749	£250.00	Free valuation up to £700 for purchases and remortgages and free legals on remortgages only.	4.8% APR
65%	3.99% Tracker	May 31 2014	£1550	£195.00	Free Valuation & Legal Fee Assist (maximum £495)	5.9% APR
60%	3.25% Discount	2 Years	£1750	£250.00	No	5.3% APR
60%	3.89% Discount	May 31 2014	£999	£0.00	Free valuation for purchases and remortgages and free legals on remortgages only.	5% APR

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

---

Tenants Interview - smart or casual?

Well I call it an interview but it's not really.  It's when you are trying to find out whether a prospective tenant is going to be suitable for your buy-to-property.  How formal do you make the process and more importantly do you dress up to create an impression?  I'm currently in the process of letting one of my properties and therefore every so often I have to show the prospective tenants around the two bedroom apartment.

'Suited and booted'

In days gone buy in my former professional life I'd often conduct the viewings still dressed in my work suite so 'suited and booted.'  These days I spend most of my time unshaven (what a waste of time shaving is!) and swapping between gym gear and jeans.

Two schools of thought

There are two schools of thought when in it comes to what to wear and how to present yourself to a prospective tenant.  If you go in smart, that hopefully sets a tone.  It makes the tenant feel that what they are doing i.e. taking on a tenancy is a responsible and serious financial commitment.  Also, it gives them the confidence to feel they are dealing with a landlord that is equally as serious and reliable about their responsibilities in managing and maintaining their buy-to-let properties.  The other would say if you take a more casual approach, then the tenant will feel less intimidated and is more likely to reveal more about their true character.  This enables the landlord to find out who the 'real person' is behind the initial social face we all put on when meeting someone for the first time.  Some would argue that it's nothing about what you wear and all about how you conduct yourself.  I'd be interested to hear other landlords views?

Landlord insurance - professional rates online

Landlords on the hunt!

Landlords are on the hunt for more property according to the latest landlord survey conducted by PRS in the second quarter of 2012.

Just under a fifth of landlords or 21% are planning to purchase an additional buy-to-let in the third quarter.  No doubt this partly reflects their views on strong tenant demand with 44% of landlords expecting it to increase in the next 12 months.

Mortgage Search - buy-to-let specialists

Pinch punch first day of the month!

Did you get a reminder email on Sunday.  Just in case anybody was a fronted, bemused or confused there is nothing to worry about.  The email is sent by the property management system that landlords immediately have access to as a result of signing up for a free tenancy agreement.  It's there as a helpful reminder on critical issues relating to your buy-to-let portfolio such as your landlord insurance or gas safety certificates. 

If you don't want to receive any more reminders to opt out of the system just login to your property management system and select the my details button.  Then click on the reminders button and you can opt for no reminders.  I thought I'd remind you all that the decision is yours....so Craig...just keep your hair on mate...assuming you have any left. Life's just too short.

Landlord insurance - professional rates