5 Year fixed at 5.99% might not stay around for long

For buy to let mortgages there is still less movement in rates. The same level of competition isn't there and that will have a major impact of what rates are available.

Let me explain.

Last week BM Solutions tested the market with a 5 year fixed rate to see what uptake it would have. Now as they are the major buy to let lender at 75% loan to value they will have realised pretty quickly how popular this rate is to property investors and lenders.

If it gets too popular then the product will get pulled and more than likely a more expensive one released in its place.

Well watch this space very carefully (and I mean within the next couple of days) because I doubt the 5 year will be around for very long. Its seems many of you are prepared to take the risk and fix now at 5.99% rather than waiting around for a lower long term fix.

If you're on the standard variable rate with your current lender then give Pete or Gary a call NOW. 01424 205 373

THIS DOCUMENT AND OTHER DOCUMENTS PROVIDED ARE FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION SHOULD NOT BE INTERPRETED TO BE A COMMITMENT ON THE PART OF RESIDENT BROKER LTD. RESIDENT BROKER LTD CANNOT GUARANTEE THE ACCURACY OF ANY INFORMATION PRESENTED AFTER THE DATE OF PUBLICATION. INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED 'AS IS' WITHOUT WARRANTY OF ANY KIND. THE USER ASSUMES THE ENTIRE RISK AS TO THE ACCURACY AND THE USE OF THIS DOCUMENT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

BTL Mortgage News and Views for Landlords

It seems the rise of Skipton's standard variable rate (SVR) has paved the way for other building societies to raise their rates. Your emails came in thick and fast after last week's newsletter, letting me know that other building societies like Mansfield Building Society have raised theirs; also, you contacted us to let us know that lenders like Norwich & Peterborough have relatively high SVRs anyway.

So, your next line of action seems quite clear. If you're in doubt about whether you are overpaying in the current market, then just give us a call. After all, as we always say, the money is better in your pocket than the lenders - and if you don't tell them it's too expensive by moving away, they certainly won't tell you!

Buy To Let - 5 year fixed rate.

The last few months have shown little desire by the lenders to introduce any long term fixes to the market. Now even though I've been bending the ear of the top brass at BM Solutions for a while now about the need to give us a decent long term fixed rate, even I was surprised they released one this week.

The challenge for you, the investor, is how you see the market and interest rates panning out within the medium term. I suppose the two main views are:

1. Rates are low at the moment and will continue to be low for the foreseeable future - therefore what's the point of fixing at a higher rate now.

OR

2. You're keen to lock into a long term fixed rate now, because:

a. when rates do start to rise, it is likely that the long term fixed rates that are available are more expensive than what they are now.

b. you can forget about the fluctuations of interest rates over the next 5 years and concentrate on managing your portfolio.

Now this decision is made easier by a number of factors: For example, if you have a property which is 95% loan to value with a pay rate of 0.75% on a HMO then stay where you are - please!

However, if you are on a standard variable rate with a loan to value 75% and under, then read this (I've put this in bold in case you don't read anything but big bold type):

If you're on the standard variable rate with your current lender then give Pete or Gary a call NOW. 01424 205 373

THIS DOCUMENT AND OTHER DOCUMENTS PROVIDED ARE FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION SHOULD NOT BE INTERPRETED TO BE A COMMITMENT ON THE PART OF RESIDENT BROKER LTD. RESIDENT BROKER LTD CANNOT GUARANTEE THE ACCURACY OF ANY INFORMATION PRESENTED AFTER THE DATE OF PUBLICATION. INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED 'AS IS' WITHOUT WARRANTY OF ANY KIND. THE USER ASSUMES THE ENTIRE RISK AS TO THE ACCURACY AND THE USE OF THIS DOCUMENT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

BTL MORTGAGE PRODUCT PICK

Here's our most popular buy to let rates this week.

1. Godiva
Interest rate: 4.75% for term
LTV: 70%
Product Detail: Variable rate Free valuation
Arrangement Fee: £250 upfront: £800 added to the loan
Early Redemption Penalties: None
Our thoughts: Great for high valuation properties; also gives you the flexibility to sell without early redemption penalties. Free legals on their remortgage products.
2. BM Solutions
Interest rate: 4.5% (then BBR plus 4.24% for Term)
LTV: 75%
Product Detail: 2 year tracker
Arrangement Fee: fixed fee £1999
Early Redemption Penalties: 3% for 2 years.
Our thoughts: For high value properties the fixed fee makes this a good option.

Ring 01424 205 373 or email to get No Broker Fee Mortgage Advice

THIS DOCUMENT AND OTHER DOCUMENTS PROVIDED ARE FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION SHOULD NOT BE INTERPRETED TO BE A COMMITMENT ON THE PART OF RESIDENT BROKER LTD. RESIDENT BROKER LTD CANNOT GUARANTEE THE ACCURACY OF ANY INFORMATION PRESENTED AFTER THE DATE OF PUBLICATION. INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED 'AS IS' WITHOUT WARRANTY OF ANY KIND. THE USER ASSUMES THE ENTIRE RISK AS TO THE ACCURACY AND THE USE OF THIS DOCUMENT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

BTL Finance - News and views

The momentum to increase standard variable rates on your existing mortgages seems to be gathering pace. Eight lenders (according to Moneyfacts) have so far increased their standard variable rate since base rate hit 0.5%.

The latest was Skipton building society - and this one did seem to upset a few people. They had a ceiling on their standard variable rate which meant that the majority of borrowers would not pay more than 3% over the base rate.

However due to 'exceptional market conditions' they will now increase it from 3.5% to 4.95%.

Now I don't want to be too hard on Skipton because in the context of the credit crunch building societies really have been having a hard time. However the trend is clear - standard variable rate mortgages look like they are getting more expensive.

What does this mean? Well, it means more and more people will start to benefit from remortgaging. In fact don't take my word for it - Santander, who are regular readers of this newsletter, reported that over 880,000 UK homeowners on tracker or fixed rate mortgages, could be looking to remortgage in the next six months

Should I stay or should I go?

Its not often I can get a quote in this newsletter from the mighty band The Clash but I just wanted to be clear:

If you are currently on a standard variable rate with your current residential lender
Then it is worth calling us and within a couple of minutes we will be able to tell you whether you could save money by switching lenders.

Simple as that. In fact, even if we can't save you money right now we'll put you on special watch (sounds painful but its not) and as soon as your variable rate does rise and it is worth switching, then we'll call you up and let you know.

If you're on the standard variable rate with your current lender then give Pete or Gary a call NOW on 01424 205 373 -ref propertyhawk for No Broker Fee.

BTL MORTGAGE PRODUCT PICK

Well, there are so many choices this week, I can hardly contain myself. Still - here's just two from our good friends at BM Solutions and an aggressive new rate from Coventry/Godiva:

BM Solutions
Interest rate: 4.60%
LTV: 75%
Product Detail: 2 year tracker
Arrangement Fee: 2.75%
Early Redemption Penalties: 3% for 2 years.
Our thoughts: A reduced 2 year tracker rate from BM. Nice.

And this in particular is one to watch - out Friday.

Godiva
Interest rate: 4.75%
LTV: 70%
Product Detail: Variable rate
Free valuation
Arrangement Fee: £250 upfront: £800 added to the loan
Early Redemption Penalties: None
Our thoughts: Great for high valuation properties; also gives you the flexibility to sell without early redemption penalties. Superb then, for a quick buy to sell.

Ring 01424 205 373 or email to get No Broker Fee Mortgage Advice

THIS DOCUMENT AND OTHER DOCUMENTS PROVIDED ARE FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION SHOULD NOT BE INTERPRETED TO BE A COMMITMENT ON THE PART OF RESIDENT BROKER LTD. RESIDENT BROKER LTD CANNOT GUARANTEE THE ACCURACY OF ANY INFORMATION PRESENTED AFTER THE DATE OF PUBLICATION. INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED 'AS IS' WITHOUT WARRANTY OF ANY KIND. THE USER ASSUMES THE ENTIRE RISK AS TO THE ACCURACY AND THE USE OF THIS DOCUMENT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

BTL Mortgage NEWS & VIEWS

Interest rates on mortgage products continue to fall:

Mortgage rates (on buy to let and residential mortgages) have steadily decreased over the last few weeks, and the signs are certainly encouraging. Now, I'm not saying we're going to see anything radical over the coming months, but there certainly seems to be a bit more competition between the lenders who are still here.

This of course is good news. . For lenders to start decreasing their mortgage rates means two, perhaps obvious, things:

1. They want to lend more volume
2. To increase this volume they feel the need to decrease their rates.

The logical next step if this doesn't work is to start changing criteria - for example loan to values. Not yet, but watch this space.

Ring 01424 205 373 or email to find out more on these products or to discuss other options. ref - PropertyHawk for No Broker Fee Offer

Claims firms can't claim- BTL mortgage news

A recent High Court judge has ruled a lender doesn't have to provide an exact copy of an original credit card agreement provided a reconstituted copy can be produced instead. Now I've always been quite sceptical of these claim firms that ask you to pay a fee upfront and then you have to wait 18 months for your refund. So be careful before you part with any money. After all you've worked hard for it (well most of you have!)

Ring 01424 205 373 or email to find out more on these products or to discuss other options. ref - PropertyHawk for No Broker Fee Offer

The mortgage dilemma: to opt for a fixed rate or not?

Something for landlords to consider.

This article in the Telegraph debates the future of mortgage interest rates.

Get it wrong and landlords could find it a to be a costly mistake.

Ring 01424 205 373 or email to get No Broker Fee Mortgage Advice

THIS DOCUMENT AND OTHER DOCUMENTS PROVIDED ARE FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION SHOULD NOT BE INTERPRETED TO BE A COMMITMENT ON THE PART OF RESIDENT BROKER LTD. RESIDENT BROKER LTD CANNOT GUARANTEE THE ACCURACY OF ANY INFORMATION PRESENTED AFTER THE DATE OF PUBLICATION. INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED 'AS IS' WITHOUT WARRANTY OF ANY KIND. THE USER ASSUMES THE ENTIRE RISK AS TO THE ACCURACY AND THE USE OF THIS DOCUMENT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Mortgage Express - waive ERC's again.

Mortgage Express has now said that the early repayment charge waiver will be available until further notice. They are reserving the right to withdraw the offer in the future.

I still don't think they will start discounting loans to persuade people to move but watch this space we will let you know.

Ring 01424 205 373 or email to find out more on these products or to discuss other options. ref - PropertyHawk for No Broker Fee Offer

Try Again!

For many investors who found it difficult to secure finance in 2009 then now's the time to try again. Forget about the dreaded credit score we have access to lenders that will look at your application on a case by case basis (yes an actual human being reads your application).

So give us a call today - even with the snow we are in our nice warm offices waiting for you to call. What are you waiting for?

Ring 01424 205 373 or email to find out more on these products or to discuss other options. ref - PropertyHawk for No Broker Fee Offer

THIS DOCUMENT AND OTHER DOCUMENTS PROVIDED ARE FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION SHOULD NOT BE INTERPRETED TO BE A COMMITMENT ON THE PART OF RESIDENT BROKER LTD. RESIDENT BROKER LTD CANNOT GUARANTEE THE ACCURACY OF ANY INFORMATION PRESENTED AFTER THE DATE OF PUBLICATION. INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED 'AS IS' WITHOUT WARRANTY OF ANY KIND. THE USER ASSUMES THE ENTIRE RISK AS TO THE ACCURACY AND THE USE OF THIS DOCUMENT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

BTL MORTGAGE PRODUCT PICKS

Here are a couple of products from Godiva which are great for high value loans:

Godiva

Interest rate: 4.99%
LTV: 65%
Product Detail: Fixed at 4.99% until 30/06/2011
Arrangement Fee: £800
Booking Fee: £250
Valuation Fee: None
Early Redemption Penalties: 4% until 30/06/2011

Godiva
Interest rate: 4.69%
LTV: 65%
Product Detail: Variable 4.69%
Arrangement Fee: £800
Booking Fee: £250
Valuation Fee: None
Early Redemption Penalties: None

Ring 01424 205 373 or email to find out more on these products or to discuss other options. ref - PropertyHawk for No Broker Fee Offer

THIS DOCUMENT AND OTHER DOCUMENTS PROVIDED ARE FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION SHOULD NOT BE INTERPRETED TO BE A COMMITMENT ON THE PART OF RESIDENT BROKER LTD. RESIDENT BROKER LTD CANNOT GUARANTEE THE ACCURACY OF ANY INFORMATION PRESENTED AFTER THE DATE OF PUBLICATION. INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED 'AS IS' WITHOUT WARRANTY OF ANY KIND. THE USER ASSUMES THE ENTIRE RISK AS TO THE ACCURACY AND THE USE OF THIS DOCUMENT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

BTL Finance - News and Views

It's that time of year when every man and his dog gets to make predictions for the coming year. Now even though I don't have a dog I do have opinions and here they are:

Buy to let lending will not improve drastically within the next 12 months - it will stay fairly flat.

OK it may ease a little as far as credit scores are concerned and we even see some different innovative products available but there won't be any fundamental changes like increases in loan to value etc.

Why do I say this?
Well because the fundamentals of the lending market haven't changed and don't look like they will anytime soon. There are no new buy to let lenders on the horizon, with less competition existing lenders are happy making higher margins on their mortgages. There's no need for them to increase their risk by increasing their loan to values to get business.

However that doesn't mean it's all bad, far from it. If you can get the finance it puts you in a great position to pick up some great bargains. In fact I know from talking to many of you that you feel now is the best time to buy in years.

Affordability: get that income and deposits at the ready.
Proof of income and proof of deposits will become more and more important. As buy to let lending heads towards regulation lenders will start to put more emphasis on affordability. Traditionally affordability of buy to let mortgages was the rental criteria e.g. rent covers the interest payments by 125%. Lenders will start to look more at availability of contingency funds, existing rental properties and actual rents received when assessing affordability.

It's more important than ever that you have the necessary cash deposits to be able to do the deals. The six month remortgaging rule is not going away in a hurry so if you can get enough deposit money together you can still use the buy and remortgage strategy but it will take longer.

Interest rates will stay low - what else can I say?

Residential mortgages will start to get more competitive.
Unlike buy to let lending residential mortgages are considerably more competitive at the moment. Keep your eye out on your existing standard variable rate because there will come a time soon when it may be worth switching.

Resident Broker will continue to enhance our service to you.
The feedback we get back from you is always appreciated and we will continue to improve our service offerings. Here are just a few things we provide:

Residential and buy to let mortgages
Protection - yes that's right get your life cover in trust or potentially lose 40% of the proceeds to the tax man.

So to summarise am I positive or negative? Well I think more realistic - finance is still here and available but don't plan your strategy around finance easing up anytime soon and 85% LTV buy to let mortgages making a quick come back.

Ring 01424 205 373 or email to find out more on these products or to discuss other options. ref - PropertyHawk for No Broker Fee Offer

THIS DOCUMENT AND OTHER DOCUMENTS PROVIDED ARE FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION SHOULD NOT BE INTERPRETED TO BE A COMMITMENT ON THE PART OF RESIDENT BROKER LTD. RESIDENT BROKER LTD CANNOT GUARANTEE THE ACCURACY OF ANY INFORMATION PRESENTED AFTER THE DATE OF PUBLICATION. INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED 'AS IS' WITHOUT WARRANTY OF ANY KIND. THE USER ASSUMES THE ENTIRE RISK AS TO THE ACCURACY AND THE USE OF THIS DOCUMENT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Buy-to-let mortgage - exclusive deals

Oh you lucky people! We have just been honoured by BM Solutions in giving us an exclusive new product range that has some real advantages over their current offerings. Are you ready? Then I shall begin.

The real advantage here is the product fees which, rather than a percentage of the loan, are fixed. So now you only have to purchase a property over £100,000 to start saving. Their standard range (through other brokers, you understand) charge between 2.5% and 3% as an arrangement fee.

2 Year Fixed

5.79%

Fixed at 5.79% until 01/04/2012
75% LTV
Rental Calculation 125% at Payrate
Product Fee £1495
2 Year ERCs
Maximum Loan Size: £250,000
2 Year Fixed

5.79%

Fixed at 5.79% until 01/04/2012
75% LTV
Rental Calculation 125% at Payrate
Product Fee £2495
2 Year ERCs
Loan Size £250,000 to £500,000

3 Year Fixed

5.99%

Fixed at 5.99% until 01/04/2013
75% LTV
Rental Calculation 125% at Payrate
Product Fee £1995
3 Year ERCs
Max Loan Size £350,000

1 Year Tracker

3.99%

BBR + 3.49% for 1 year
65% LTV
Rental Calculation 125% at Payrate
Product Fee 2.5% of loan
1 Year ERCs

2 Year Tracker

4.50%

BBR + 4.00% for 2 years
70% LTV
Rental Calculation 125% at Payrate
Product Fee £1999
2 Year ERCs

The main point here is to give us a call to discuss your potential deal as the are some caveats, but isn’t it nice to have a Lender come out with some unique deals for us? You can save your arrangement fees. And we get to feel exclusive.

Which we are.

Ring 01424 205 373 or email to find out more on these products or to discuss other options. ref - PropertyHawk for No Broker Fee Offer

THIS DOCUMENT AND OTHER DOCUMENTS PROVIDED ARE FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION SHOULD NOT BE INTERPRETED TO BE A COMMITMENT ON THE PART OF RESIDENT BROKER LTD. RESIDENT BROKER LTD CANNOT GUARANTEE THE ACCURACY OF ANY INFORMATION PRESENTED AFTER THE DATE OF PUBLICATION. INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED 'AS IS' WITHOUT WARRANTY OF ANY KIND. THE USER ASSUMES THE ENTIRE RISK AS TO THE ACCURACY AND THE USE OF THIS DOCUMENT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.


Free property management software, Free tenancy agreements

Buy-to-let mortgage TIPS

TIP OF THE WEEK 1: Proof of deposit and income.

It has become increasingly clear that many lenders need to see proof of deposit and sometimes proof of income (although there are still lenders who don't need/want proof of income). Even the ones that don't ask for it upfront can ask after the valuation has been carried out, or even later down the line after a formal mortgage offer.

To make sure this doesn't catch you out, we always advise the following:

1. Make sure proof of income is readily available, should you be asked.
2. Have proof of deposit available should you be asked by the broker/lender/solicitor. Proof of deposit is normally acceptable by way of a bank statement which shows a slow build up of funds or lump sums from certain transactions e.g. sale/remortgage of a property,

---

TIP OF THE WEEK 2: Looking for a buy to sell mortgage - and bypass normal rental income?

Let's say you have found a property where the rental income is low and the property needs some refurbishment work. We have a lender that, subject to provable income, can bypass the normal rental criteria that is usually needed.

You can buy the property, do whatever works need doing and then sell on without early redemption penalties.

Ring 01424 205 373 or email to find out more on these products or to discuss other options. ref - PropertyHawk for No Broker Fee Offer

THIS DOCUMENT AND OTHER DOCUMENTS PROVIDED ARE FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION SHOULD NOT BE INTERPRETED TO BE A COMMITMENT ON THE PART OF RESIDENT BROKER LTD. RESIDENT BROKER LTD CANNOT GUARANTEE THE ACCURACY OF ANY INFORMATION PRESENTED AFTER THE DATE OF PUBLICATION. INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED 'AS IS' WITHOUT WARRANTY OF ANY KIND. THE USER ASSUMES THE ENTIRE RISK AS TO THE ACCURACY AND THE USE OF THIS DOCUMENT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Buy-to-let mortgage picks

MORTGAGE PRODUCT PICK - let's repeat last week's, in case you missed it.

85% Buy To Let - it's back!

Tiuta has launched a three-year fixed rate buy-to-let deal with a headline rate of 6.99%, up to 85% LTV.

...with a few caveats of course.

1. The product allows for borrowing on 70% of open market value but not to exceed 85% of the purchase price.

2. Remortgaging allowed within 6 months of ownership.

3. Rental criteria is 110% at payrate.

Note: Where ownership is less than 6 months they will fund at the lower of 70% of current OMV or 85% of original PP. If works have been undertaken during this ownership, IN ADDITION to this they will fund up to 85% of the costs of the works undertaken. This will have to be supported by invoices and bank statements to demonstrate genuine investment costs.

Call us now for full details and costs (They also have a HMO product).

Here's some other popular buy to let deals:

1. Woolwich
   Interest rate: 3.99%
   LTV: 60%
   Product Detail: Barclays bank base rate + 3.49
   Arrangement Fee: 1.75%
   Early Redemption Penalties: 6 months within first 32 months.
   Our thoughts: Watch out for the base rate - its Barclays bank base rate not Bank of England base rate so won’t necessarily always be the same.

And of course our old favourite for 75% LTV.

2. BM Solutions
   Interest rate: 4.35%
   LTV: 75%
   Product Detail: 1 year tracker
   Arrangement Fee: 3%
   Early Redemption Penalties: 3% in first year.
   Our thoughts: The lowest rental cover for 75% loan to value mortgages but watch the reversionary rate after the first year.
   

Ring 01424 205 373 or email to find out more on these products or to discuss other options. ref - PropertyHawk for No Broker Fee Offer

THIS DOCUMENT AND OTHER DOCUMENTS PROVIDED ARE FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION SHOULD NOT BE INTERPRETED TO BE A COMMITMENT ON THE PART OF RESIDENT BROKER LTD. RESIDENT BROKER LTD CANNOT GUARANTEE THE ACCURACY OF ANY INFORMATION PRESENTED AFTER THE DATE OF PUBLICATION. INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED 'AS IS' WITHOUT WARRANTY OF ANY KIND. THE USER ASSUMES THE ENTIRE RISK AS TO THE ACCURACY AND THE USE OF THIS DOCUMENT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Buy-to-let mortgages news and views

Buy to Let mortgages are the latest products mooted to feel the cold embrace of government regulation, as they are now proposing to extend the remit of the FSA to include all such investment finance. This has in fact been on the cards for quite a while now and I don’t think has come as too much of a surprise following the wave of regulation fever.

The impact of such a move shouldn't make too much of a difference from a mortgage advice point of view, (here at Resident Broker we treat buy to let mortgages in a similar way to regulated mortgages anyway), however it may have connotations from a lending point of view - after all if the concept of affordability is passed onto buy to let mortgages then it may tighten the amount lenders are prepared to lend to any one person. Better get those mortgages in quick then!

On the subject of the Financial Services Authority, I also read last week that the FSA will have to demonstrate its value to the National Audit Office next year - the FSA's current budget stands at a cool £437m a year. We have the greatest of respect for our regulatory masters and therefore have no comment to make.

And finally …Kensington has announced it is back in the market. Even though it will be a small re-entry, it is a good sign that the lender has managed to secure funds and is tentatively dipping their proverbial toe in the post-nuclear financial pond. Lets hope more will follow.

Get the latest news and views on the BTL Mortgage market with this FREE weekly newsletter.
Name:
Email:
PRIVACY POLICY: We totally respect your privacy and will treat any information you provide with utmost respect and confidence. We never ever share, sell, rent or otherwise pass on your information to any third party. We hate spam and junk mail as much as you do.

BTL Mortgage Product Pick

85% Buy To Let (for those lucky enough to purchase below market value)

Tiuta has launched a three-year fixed rate buy-to-let deal with a headline rate of 6.99%, and crucially up to 85% LTV.

Sounds painful? Well, here are some unique selling points:

1. The product allows for borrowing on 70% of open market value but not to exceed 85% of the purchase price.

2. Remortgage allowed within 6 months of ownership.

3. Rental criteria is 110% at payrate.

Note: Where ownership is less than 6 months they will fund at the lower of 70% of current OMV or 85% of original PP. If works have been undertaken during this ownership, IN ADDITION to this they will fund up to 85% of the costs of the works undertaken. This will have to be supported by invoices and bank statements to demonstrate genuine investment costs.

Call us now for full details and costs (They also have a HMO product).

Here are some other popular current buy to let deals:

Woolwich
Interest rate: 3.99%
LTV: 60%
Product Detail: Barclays bank base rate + 3.49
Arrangement Fee: 1.75%
Early Redemption Penalties: 6 months within first 32 months.
Our thoughts: Watch out for the base rate - it's Barclays bank base rate not Bank of England base rate, so won't necessarily move together.
And of course, our old favourite for 75% LTV.

BM Solutions
Interest rate: 4.35%
LTV: 75%
Product Detail: 1 year tracker
Arrangement Fee: 3%
Early Redemption Penalties: 3% in first year.
Our thoughts: The lowest rental cover for 75% loan to value mortgages but watch the reversionary rate after the first year.

Ring 01424 205 373 or email to find out more on these products or to discuss other options. ref - PropertyHawk for No Broker Fee Offer

THIS DOCUMENT AND OTHER DOCUMENTS PROVIDED ARE FOR INFORMATIONAL PURPOSES ONLY. THE INFORMATION SHOULD NOT BE INTERPRETED TO BE A COMMITMENT ON THE PART OF RESIDENT BROKER LTD. RESIDENT BROKER LTD CANNOT GUARANTEE THE ACCURACY OF ANY INFORMATION PRESENTED AFTER THE DATE OF PUBLICATION. INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED 'AS IS' WITHOUT WARRANTY OF ANY KIND. THE USER ASSUMES THE ENTIRE RISK AS TO THE ACCURACY AND THE USE OF THIS DOCUMENT.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

BTL Mortgage News

I wouldn't exactly say the buy to let mortgage market is overheating at the moment, but there definitely seems to have been some more changes for the positive. In the last couple of weeks we've seen a couple of new products come to the market - the 85% buy to let product detailed below (and also a new BTL refurbishment mortgage product).

Best quote of the last couple of weeks is definitely from Matthew Wyles chairman of the Council of Mortgage Lenders. He said the Financial Services Authority sees mortgage lenders and mortgage intermediaries as the drug-dealers at the "school gates" of the mortgage market.

He muses, "Regulators see lenders and intermediaries as the sweetshop owners - or worse, the drug-dealers at the school gates of the mortgage market, enticing innocent consumers in and then getting them hooked, for their own evil profit-driven purposes."

I just wanted to assure you that in no way, shape or form do I see myself as a sweetshop owner.

BTL mortgage tip - Beware non-refundable booking fees.

A worrying trend within the mortgage market has been for lenders to start to charge non-refundable booking fees, even if the mortgage application has been rejected. The justification for these fees is to cover the cost of processing mortgage applications, but this argument seems fairly hollow when lenders like HSBC are charging an eye watering £999 non-refundable fee. Ouch! You better make sure that sale doesn't fall though.

As ever, speak to your Resident Broker and we will take this into account when advising. We have strong views on this.

Ring 01424 205 373 or email to find out more on these products or to discuss other options.
ref - PropertyHawk for No Broker Fee Offer.

BTL Mortage Products Update

I thought we'd have a few different options this week:

1. Northern Rock
Interest rate: 5.69%
LTV: 70%
Product Detail: Fixed until 1/1/2013
Arrangement Fee: 2%
Early Redemption Penalties: 4% until 1/1/2013
Our thoughts: Competitive 3 year fixed with 120% rental cover. Make use of its flexible features for lump sum overpayments and draw down. Also look out for the 60% LTV product at 5.29%

2. Godiva/Coventry
Interest rate: 4.99%
LTV: 60%
Product Detail: Base Rate + 4.49 to 31/12/2011
Arrangement Fee: £250 Upfront and £800 can be added Early Redemption Penalties: 4% until 31/12/2011.
Our thoughts: Free valuation. Also great for high value loans as the arrangement fee is fixed rather than percentage.
And, of course, our old favourite for 75% LTV:

3. BM Solutions
Interest rate: 4.35%
LTV: 75%
Product Detail: 1 year tracker
Arrangement Fee: 3%
Early Redemption Penalties: 3% in first year.
Our thoughts: The lowest rental cover for 75% loan to value mortgages but watch the reversionary rate after the first year. Good for "buy to sell-in-a-year" though.

Ring 01424 205 373 or email to find out more on these products or to discuss other options.
ref - PropertyHawk for No Broker Fee Offer.