This sad story just shows how badly things can spiral down when the buy-to-let bubble bursts. A middle aged couple fell for the dream of financial security from property investing, they invested in a portfolio of new build apartments, most likely over priced, resulting in their dream of security crashing around them.
The unfortunate couple were apparently left with a rental loss of £4000 a month. I must admit in the current rental market if their portfolio of 20 apartments were fully let I find that hard to work out unless the reversion rates on their buy to let mortgages were very high, but this is what the Daily Mail claims.
A drunken argument over their desperate financial situation lead Jennifer Parkinson to stab her husband, Michael to death.
This tale does highlight the risks involved in heavily leveraged property investment.
Make sure you understand the risks that this strategy involves before you start risking everything!
Below is a selection of the most popular buy-to-let mortgages currently available.
For full information on these products, and all other buy-to-let mortgage schemes available to you, please visit www.propertyhawk.co.uk/mortgages.aspx to use the free online buy-to-let mortgage finder.
If you would like to discuss your requirements with a member of the support team please telephone 029 2069 5446 or you can submit a quick enquiry directly to the team by filling in our online enquiry form.
Max LTV
Initial rate
Term
Reversionary rate
Completion fee
Booking fee
Early repayment charges
Incentives
80%
4.99% Fixed
Jul 31 2013
Lender's standard variable rate which is currently 4.99% for the remainder of the term
3.5% (min £595)
£0
5% of amount being repaid until 31/07/2013
No
80%
4.99% Disc.Tracker
2 Years
Lender's standard variable rate which is currently 5.49% for the remainder of the term
2.5%
£250
2% of original balance being repaid for 2 years
No
75%
4.99% Fixed
Jun 30 2013
Lender's standard variable rate (currently 4.60%) + 0.5% for the remainder of the term
£999
£99
5% of amount being repaid until 30/06/2013
Free valuation and free legals
75%
3.99% Disc.Tracker
2 Years
Lender's standard variable rate which is currently 5.64% for the remainder of the term
£2499
£250
No
No
70%
4.49% Fixed
Aug 1 2013
Lender's standard variable rate which is currently 4.79% for the remainder of the term
3.5%
£0
4% of the outstanding balance as of 1st January until 01/08/2013
Rapid Remortgage Legal service available from £250 (refer to New Business Team for further details)
70%
3.75% Disc.Tracker
2 Years
Lender's standard variable rate (currently 5.69% ) + 0.3% for the remainder of the term
2%
£199
Tapered charges of 3/2% of the amount being repaid for the first 2 years
No
65%
4.4% Tracker
2 Years
Lender's standard variable rate which is currently 4.60% for the remainder of the term
2%
£150
3% of amount being repaid for 2 years
No
65%
4.75% Fixed
Jun 30 2013
Lender's standard variable rate which is currently 4.74% for the remainder of the term
0%
£250
No
Free valuation up to £700 for purchases and remortgages and free legals on remortgages only.
60%
3.15% Disc.Tracker
2 Years
Lender's standard variable rate which is currently 5.64% for the remainder of the term
£1750
£250
No
No
60%
3.99% Fixed
Jun 1 2013
Variable rate of BBR + 4.24% for the remainder of the term
3%
£0
3% of amount being repaid until 01/06/2013
No
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.
Please visit www.propertyhawk.co.uk/mortgages.aspx to search the full product range and find a buy-to-let mortgage to suit your specific personal circumstances.
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 Mortgage Trust has reappeared on the buy-to-let mortgage scene and has launched a variable and fixed rate mortgage aimed at smaller scale landlords, for remortgages only.
The fixed rate of 4.99% up until 30.6.13 with the variable rate of 3.99% for 2 years. Both are available up to 75% LTV. Booking fee is £1098 with an incentives of free valuation and legal fees. The rental income requirement is for 125% mortgage interest cover and their is a limit of 5 properties within the Paragon Group.
Landlord Centre, the online buy-to-let mortgage specialist, produces the Property Investor Profile to track developments in the UK buy-to-let mortgage market.
Its findings for Q1 2011 highlight several interesting trends for the sector, including:
Higher loans amounts offered during the period
Growing interest in tracker rates
London is the most popular city for buy-to-let investment followed by Portsmouth, Sheffield and Brighton
Over 90% of buy-to-let tenants are families or professionals
Terraced houses and flats are the most popular buy-to-let properties
For those accidental landlords out there worried about any Capital Gains tax liabilities here's a reminder of the "three year " rule that was so kindly introduced by that cuddly rottweiler, Norman Tebbit back in the eighties.
"It means that if someone else rents your own main property, for tax purposes, the last three years of any period of ownership are treated as though you were still living there, and thus still qualify for tax-free status," says Patrick Stevens, tax partner at Ernst & Young accountant.
I recently reported on the popularity of landlords amongst lenders.
Nationwide BS have been one of the lenders who have maintained an active interest in buy-to-let even during the credit crunch.
In this recent article it becomes clear why lenders are so keen on lending to landlords.
It appears that the latest regulatory environment for lenders means that lenders are required to hold much higher levels of capital when advancing the higher LTV products often demanded by first time buyers. This results in reduced profit levels for lenders.
Hence the sudden attractiveness of landlords to mortgage companies.....have we ever been so popular......
With these capital controls to stay in place for several years as the economy works through this stage in the lending/regulatory cycle (tight!). Then it looks like landlords could remain towards the top of lenders preferred borrowers for some time.
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