Some Landlords Gain from Another Bank Rate Cut

The bank of England has cut the bank base rate to its lowest rate in 300 years. Read more

The bank rate has been reduced by 0.5 percentage points to 1.5pc.

Some landlords will benefit from reduced mortgage rates but many will not, because of either mortgage collars, fixed deals or restricted deals because of high LTV.

So very good news for some landlords and highly frustrating news for other landlords.

When this doesn't work then listen out for Alistair Darling donning his overalls and oiling up the printing presses.

Your darling Margo, reporting from the Bank of England, News at Ten.

Back to you Trevor in the studio.

Please post any ideas how Gordon can get us out of this mess?

New buy-to-let mortgage launched by Nationwide

Nationwide’s specialist lending arm, The Mortgage Works, has launched two buy-to-let products, including a one-year fixed rate home loan.

Need landlord insurance in 09 - make sure you check out our discounted rates

The fixed-rate mortgage offers a rate of 3.49% for one year, with the rate reverting to bank base rate plus 2.99% after twelve months. Alternatively borrowers can chose the tracker rate of base rate plus 1.99% for the first year, which also then reverts to base rate plus 2.99%.
Both options carry a 3.5% fee, the minimum stands at £595 – which would be paid on a loan of just £17,000.

Early repayment charges apply for the first year on both products: for the fixed-rate mortgage the charge is 5% until March 2010 and 3% for the tracker rate.
Andy McQueen, managing director of The Mortgage Works, said: ‘These two new products will cater for both customers who are seeking to fix their payments over the next year, and those who are comfortable with their payments tracking the bank base rate.
‘With early repayment charges only applicable for the first year, customers can benefit from competitive interest rates for a year and then reassess their mortgage needs.’

If landlords are interested in these buy-to-let mortgage products then I'd recommend that they should try and access them through moneybackmortgages who will pay them half the commission they receive from these products. This can work out at several hundreds of pounds as the latest commission rates paid by The Mortgage Works to an introducer is 0.45% of the advance.

Ask the Minister?

Are you a discruntled landlord. Fed up with the current Governments treatment of landlords and the private rental sector. Well heres your chance to see if the other lot would be any different.

leading landlord insurance at a discount?

Property Hawk as the leading independent website for private landlords is going to interview Grant Shapps the Conservative Party MP and Shadow Minister for Housing and put some of the issues concerning landlords about the treatment of landlords and the Tories view of the future of the private rental sector. If you have a view and a question for the Shadow Minister post it to this blog and we will look to put it to the Minister in our up and coming interview. Come on landlords, don't be invisible make your views count!

Rental Property Saturation in South Devon

I bring you rental news from the regions - South Devon to be precise.

A 'saturation point' has been reached due to a combination of the credit squeeze and the housing slump.

Agencies across the area are reporting an increase in the number of people renting their homes because they cannot find a buyer.

It comes as one agent in Teignmouth says there are more three to four bedroom homes available than there are tenants to fill them.

See full article here

Home insurer LV says nationally there has been a 56 per cent rise in properties available to rent in the last three months, with 86 per cent coming from homeowners choosing to let their properties rather than sell.

Your Darling Margo
Regional news reporter for The Property Hawk Regional Newsdesk - Now for the weather

US Property Forecast of Second Wave of Mortgage Defaults

Grim property report on the US property market through 2009 and 2010.

This program forecasts the next wave of mortgage defaults that could bring the property market down further in the US.




Your Darling Margo,
Trying to warm landlords hearts in a cold climate.

Prime Central London Rents See Sharp Falls

Prime Central London have seen rental falls of 9.6 percent during the last three months of 2008 according to Knight Frank’s rental index.

Rents have been seen to fall by a total of 12 percent,over three consecutive quarters, taking rents back to the level last seen in March 2007.

Head of residential research at Knight Frank, said: “Prime residential rents in central London have fallen dramatically over the past three months. To put the figures in perspective, the drop of 2.1 percent recorded in September 2003 was the previous largest biggest decline on record in prime central London.

“While there has been an increased demand for rental property, the result of many people choosing to delay house purchase, this has been outweighed by the sheer amount of new stock coming onto the market, much of it from ‘forced landlords’ unable or unwilling to sell their property in the current market.

“This has combined with downward pressure on corporate and personal budgets, pessimism over the short-term future of the economy and mounting job losses in the key financial services sector to markedly drive down rents.

“Tightening budgets and reduced corporate expenditure also means that demand is strongest for properties at lower price points, which are overwhelmingly flats. Over the past quarter in prime central London, rents for properties priced at under £500 per week have fallen by only 2.4 percent, while those priced at over £1,500 per week have seen a of fall by 15 percent. Rents for houses, meanwhile, have dropped by 17 percent, compared to just 8 percent for flats.

“As a result, the owners of higher value properties, which are disproportionately houses, face either long void periods or a dramatic adjustment in their expectations of what rents may be achievable. However, there is some good news for landlords. Rents may be falling but base rates are at unprecedented levels, and those with tracker mortgages may find that their costs drop and margins increase.

“Prime central London yields remain at just over 4 percent, however far higher yields, in excess of 7 percent, are achievable on stressed sales and repossessions. The coming 12 months will offer an opportunity for the cash-rich acquisitive investor who can find a competitively priced property, particularly as borrowing and interest costs are dropping as base rates fall.

“It is also worth pointing out that rents saw a substantial amount of growth in 2007 and were still rising at the beginning of 2008. These dramatic falls have not yet completely eroded these gains. In prime central London rents are only 10.8 percent lower than a year ago and have only returned to early 2007 levels. In prime outer London, rents are 12.2 percent lower and have returned to late 2006 levels.”

Your darling Margo
Warming landlords hearts in the icy winds - Regional News Reporter - and now for the weather - "It's cold"