LIBOR margins continue to fall

LIBOR continues to fall. Currently the 3 month sterling rate, the one used by many buy-to-let lenders stands at 3.88%. This is 0.88% above the base rate but given that recently it was 1.2%+ it shows that money market are very slowing returning to some sense of normality. However they still have a long way to go to hit the 0.1-0.15% that has been historically classed as normal.

Professional landlord rates on buy-to-let insurance

Falling LIBOR means that lending markets between banks are slowly freeing up and should make lending to landlords in theory more available. However, given the contraction in the economy and rising mortgage arrears buy-to-let lenders are unlikely to want to loosen their purse strings too much in the short term.

Landlords Face Increased Cashflow Thanks to Bank Rate Cuts

Landlords could face a cashflow bonanza.

The reality of the current economic downturn is that the next twelve months could provide landlords with the most positive cashflow period of their landlord career to date.

I keep seeing my BTL mortgage interest repayments cut as my tracker mortgages are all linked to the Bank Rate.

With talk of a further 1% cut tomorrow I'm starting to feel warmed against the harsh winds of the economic storm.

Yes, my capital values have been slashed, yes my borrowing options have been demolished, but for now I have more money in my pocket each month.
What shall I go and waste it on to help boost the economy's retail spending?
Maybe a big 52" plasma TV? What about an expensive designer watch? Maybe some unjustifiably, costly after shave or a new car?

Forget it! I am a landlord!

Landlords, save and invest - we do not like to waste money on consumables. We leave that to tenants.

But saying that I might go and splash out on one of those DVD players, apparently they are very good, and having watched them come down in price over the past ten years from £1500 to £15.99 it might be time to invest in one.

Special Rates on Alan Boswell Landlord Insurance

Landlord insurance tied to buy-to-let mortgage

Many landlords especially those new to being a landlord and buy-to-let investor are talked into taking out landlord insurance with their buy-to-let lender. This is invariably a mistake. A landlord will probably be paying at least 30-40% over what they should do for their landlord insurance.

Buy-to-let lenders often 'subtly' encourage landlords to use their insurance by making them pay an administration charge for not selecting their landlord insurance and opting to make their own provision. I have never used my lenders insurance, partly out of principal. No body is going to black mail me into having their insurance. And partly because I know I'm paying far too much for their landlord insurance and given that the average landlord holds a property for 17 years - this is going to work out at a lot of dosh.

Where would I go for my landlord insurance?

Firstly, I would always advice landlords to get a range of quotes before deciding.

Go here where many professional landlords go for a good choice of some of the most competitive landlord insurance providers. I use Alan Boswell for my and have done for over a decade. They have a specific landlord insurance department. Seem to know what they are doing, have friendly helpful staff and there has never been a problem. They also do most of the landlord insurance for the landlord associations. But never buy the first landlord insurance product you find, make sure you get at least 3 quotes to be sure you have got the best deal.

A tenant struggles to get on with his landlord

A tenant struggles to get on with his landlord. How do your tenants think about you?



The tenant landlord relationship is always a fragile one, especially if the tenant is a sensitive artistic type.

Your Darling Margo

Leeds landlords face big loss

According to Property Week some property investors have taken a massive hit on a luxury Leeds residential development. This is because many investors are defaulting on the purchase of 52 flats at the tower.

Bridgewater Place, a joint venture between St James Securities and Landmark Development Projects, teamed up with residential developer KW Linfoot in a 50:50 joint venture to develop 200 luxury flats at the 32-story tower.

The JV has completed the sale of 148 flats but several investors cannot complete their purchases on the remaining 52 flats.

The buyers, many of them buy-to-let investors, have failed to secure mortgages after the banks demanded larger deposits.

The 360 ft tower comprises 236,000 sq ft of offices and 200 flats arranged as 103 two-bedroom and 71 one-bedroom apartments, as well as 26 ‘smart pads’.

If all 52 flats had been sold at the originally agreed contract price it would have generated around £10m for the developers.

Chris Gilman, a director at Landmark Developments, commented:

‘The sale of 50 flats hasn’t been completed because the purchasers can’t or won’t complete. The buyers can’t get mortgages, particularly the buy-to-let investors, and need a much bigger deposit. We recognise this is a genuine problem and we are trying to work with them.

‘We have looked at selling the flats to other investors and we have had several offers from vulture funds who wanted to buy them at a heavily discounted price. We are not prepared to accept those prices and we are turning to a medium-to-longer-term view in which we plan to rent them out and then sell them at a later date.’

He said they would retain the investors’ 10% deposits and might, in some situations, pursue compensation payments.

Property Hawk comments

This case just highlights to landlords the dangers of buying off plan. Having placed a 10% deposit a property investor is effectively placing a bet on the health of the housing market 9-18 months out from completion. This is great when prices are rising and many investors made good money particularly in London 'flippin' investments. The 'Flip' side is when prices fall and investors have to walk away from their 10% deposit and then risk the developer coming after them for further funds because of breach of contract.

Buy-to-let mortgage with SVR below 5%

The Derbyshire Building Society announced today that it is reducing its standard variable rate on it's buy-to-let mortgage reduced to 4.69%, the only buy-to-let mortgage currently available below 5%


Derbyshire BS
Buy-to-let STANDARD VARIABLE RATE reduced to 4.69%, w.e.f. 1.12.08....more
02 Dec 2008

There are a range of buy-to-let mortgage available that have rates below 6%:


NORTHERN BANK (NI)
Full status
Variable
Term
Rate : 5.25%
0.00%
LTV First time buyer 80.00%
LTV 2nd time buyer 80.00%
LTV remortgage 80.00%
No Higher Lending Charge (HLC).
Arrangement £799,
Deeds Fee £125.00
Product Details
NORTHERN BANK (NI)
Full status
Variable
Term
5.65%
0.00%
80.00%
80.00%
80.00%
No Higher Lending Charge (HLC).
Arrangement £799,
Deeds Fee £125.00
Product Details
ECOLOGY BS
Full status
Variable
Term
5.70%
0.00%
80.00%
80.00%
0.00%
No Higher Lending Charge (HLC).
Arrangement £350,
1st 4 yrs: 3 Months Mortgage Interest...more
Product Details
PROGRESSIVE BS
Full status
Variable
Term
5.75%
0.00%
0.00%
60.00%
60.00%
No Higher Lending Charge (HLC).
Arrangement 1.50% Advance,
1st 3 yrs: 5% Sum Repaid...more
Product Details
NATIONAL COUNTIES BS
Full status
Variable
Term
5.79%
0.00%
70.00%
70.00%
70.00%
No Higher Lending Charge (HLC).
Arrangement £1995,
Deeds Fee £45.00 Fixed...more
Product Details
NATIONAL COUNTIES BS
Self-Certification
Variable
Term
5.79%
0.00%
70.00%
70.00%
70.00%
No Higher Lending Charge (HLC).
Arrangement £1995,
Deeds Fee £45.00 Fixed...more
Product Details
CHELTENHAM & GLOUCESTER
Full status, Expatriates
Variable
31/01/2012
5.89%
5.00%
0.00%
60.00%
60.00%
Free valuation fees Max £1M of Mortgage Advance Remortgages,EXPREM. No Higher Lending Charge (HLC).
Booking £99, ;Arrangement 2.50% Advance,
to 31/1/12: 3/2/2% Sum Repaid
Product Details
CHELTENHAM & GLOUCESTER
Full status, Expatriates
Variable
31/01/2012
5.89%
5.00%
60.00%
0.00%
0.00%
Free valuation fees Max £1M of Mortgage Advance Remortgages,EXPREM. No Higher Lending Charge (HLC).
Booking £99, ;Arrangement 2.50% Advance,
to 31/1/12: 3/2/2% Sum Repaid
Product Details
LLOYDS TSB SCOTLAND
Full status, Expatriates
Variable
31/01/2012
5.89%
5.00%
60.00%
60.00%
60.00%
£300 towards costsRemortgages,EXPREM or free legal feesRemortgages,EXPREM. No Higher Lending Charge (HLC).
Booking £99, ;Arrangement 2.50% Advance,
to 31/1/12: 3/2/2% Sum Repaid
Product Details
LLOYDS TSB SCOTLAND
Full status, Expatriates
Variable
31/01/2012
5.89%
5.00%
60.00%
60.00%
60.00%
£300 towards costsRemortgages,EXPREM or free legal feesRemortgages,EXPREM. No Higher Lending Charge (HLC).
Booking £99, ;Arrangement 2.50% Advance,
to 31/1/12: 3/2/2% Sum Repaid
Product Details
FURNESS BS
Full status
Variable
Term
5.94%
0.00%
60.00%
60.00%
60.00%
No Higher Lending Charge (HLC).
Arrangement £995,
Deeds Fee £40.00 Fixed...more
Product Details
LEEK UNITED BS
Full status
Variable
Term
5.99%
0.00%
75.00%
75.00%
75.00%
No Higher Lending Charge (HLC).
Arrangement £995,
Sealing Fee £125.00
Product Details
DUNFERMLINE BS
Full status
Variable
Term
5.99%
0.00%
80.00%
80.00%
80.00%
No Higher Lending Charge (HLC).
Arrangement £1499,
1st yr: 1% Outstanding Balance...more
Product Details
SCOTTISH BS
Full status, Expatriates
Variable
Term
5.99%
0.00%
0.00%
0.00%
75.00%
£150 rebateRemortgages,EXPREM or free legal feesRemortgages,EXPREM. No Higher Lending Charge (HLC).
Arrangement £699,
1st 3 yrs: 3/2/1% Mortgage Advance...more
Product Details
SCOTTISH BS
Full status, Expatriates
Variable
Term
5.99%
0.00%
0.00%
75.00%
0.00%
£150 rebateRemortgages,EXPREM or free legal feesRemortgages,EXPREM. No Higher Lending Charge (HLC).
Arrangement £699,
1st 3 yrs: 3/2/1% Mortgage Advance...more
Product Details
BIRMINGHAM MIDSHIRES SOLUTIONS
Full status
Variable
3 years
5.99%
6.00%
65.00%
65.00%
65.00%
No Higher Lending Charge (HLC).
Arrangement 2.50% Advance,
1st 3 yrs: 2% Sum Repaid...more
Product Details
BIRMINGHAM MIDSHIRES SOLUTIONS
Expatriates
Variable
3 years
5.99%
6.00%
65.00%
65.00%
65.00%
No Higher Lending Charge (HLC).
Arrangement 2.50% Advance,
1st 3 yrs: 2% Sum Repaid...more
Product Details