Written By Em

Em Morley

Newcastle Building Society joins BTL market

Published On: August 14, 2015 at 12:29 pm

Author: Em Morley

Categories: Landlord News

Tags: buy to let mortgages,Buy-to-Let,Newcastle Building Society

Newcastle Building Society has today announced that it is to move into the Buy-to-Let market, with a range of products.

The Newcastle will work closely with The Business Mortgage Company, who will take on the role of liaising directly with brokers and then submit cases back to the building society on their behalf.

Products

Available to all brokers, the products will include market-leading rates and also a variety of short or long-term fixed or heavily discounted alternatives. The products have a free-valuation and come with a range of either fixed or percentage based fees. This will allow borrowers to decide on the product that suits them better and which is the most cost effective.

In addition, Newcastle Building Society will pay the packaging fee for all applicants, which is normally between £250-£299.

Products available include a two-year discounted deal at 2.49%, which comes with a £999 completion fee a maximum LTV of 75%. Alternatively, there is a two-year fixed rate deal available at 2.35%, again with a maximum LTV of 75% but with a 2.5% completion fee.[1]

For those after increased security, there is also a five year fixed rate deal at 3.89%, with a £999 completion fee and maximum LTV of 75%.[1]

Newcastle Building Society joins BTL market

Partnership

‘We are excited about entering the buy-to-let market which continues to perform strongly and we’re also delighted to partner up with the BTL experts TBMC,’ said Steven Marks, Corporate Development Executive at The Newcastle. ‘This new range adds to our competitive portfolio and enables us to support our brokers further. This development comes at a time when NBSIS has invested in the management of our intermediary relationships, as well as our service and systems, all of which are key priorities for us and come at an exciting time when we are building our intermediary business.’[1]

Andy Young, chief executive officer at The Business Mortgage Company said, ‘we are delighted to be working with Newcastle Building Society and look forward to helping develop and distribute its buy-to-let mortgage offering. Young went on to say that it is, ‘great to see another buy-to-let lender entering the marketplace, offering even wider choice to landlord clients. Newcastle’s new buy-to-let range has some competitively priced products starting a 2.35% and also includes a 5 year fixed rate option, which are becoming more popular with landlords. The free valuation will also be attractive to those looking to reduce upfront costs.’[1]

[1] http://www.propertyreporter.co.uk/business/newc4stle-bs-enters-btl-market.html

Repossessions and Arrears Drop

Published On: August 14, 2015 at 12:02 pm

Author: Em Morley

Categories: Landlord News

Tags: homeowners arrears,landlord arrears,landlord repossession,mortgage arrears,property repossessions

Repossessions and Arrears Drop

Repossessions have fallen to a record low and mortgage arrears have also dropped.

The amount of properties that were repossessed has more than halved over the year to the second quarter (Q2) of 2015.

According to the Council of Mortgage Lenders (CML), 2,500 properties were repossessed in Q2, down from the 5,400 in Q2 2014.

Of the 2,500, 1,800 were owner-occupied and 700 owned by buy-to-let investors.

The total number of borrowers with arrears of 2.5% or more of the outstanding balance was 106,400 in Q2, this is 0.96% of all mortgages, and is down 17.4% annually from 128,900.

Of the 106,400 borrowers in serious arrears, 100,700 were owner-occupiers and 5,700 in the buy-to-let sector.

Director General of the CML, Paul Smee, comments on the decreases: “This trend is very welcome. Low interest rates are acting as a significant support for homeowners in general, and are likely to be helping to stave off low level arrears for stretched households in particular.”¹

¹http://www.propertyindustryeye.com/repossessions-fall-to-record-low-and-arrears-dip/

House price growth slowed in July

Published On: August 14, 2015 at 11:36 am

Author: Em Morley

Categories: Finance News

Tags: house prices,property market,property price growth

Latest figures from the Halifax suggest that property values in the UK fell for the first-time since February in July.

With the post-election surge in house prices slowing as the market enters the traditional quieter summer months, experts believe that prices will soon revert.

Fall

Data from the Index shows that house prices dipped slightly by 0.6% in July to stand at £198,883. July aside, the average house price in the UK has risen every month since February. [1]

Halifax’s report also indicates that house prices in July of this year were 7.6% higher than at the same period in 2014, although this did represent the slowest pace of growth so far this annum. House price growth reached a peak at 9.6% in the twelve months to June.[1]

In addition, the Halifax also stated that confidence in the market in terms of future house price growth had also slowed, following post-election optimism. Tighter lending criteria and the threat of an interest rate rise early in 2016 has also contributed to less positivity in the market.

Cash-buyers

Independent buyer Henry Pryor believes that the rising number of people paying with cash will continued to make prices increase in the long run. He is concerned that this will make it more difficult for first-time buyers with a mortgage and deposit to get onto the first rung of the property ladder.

House price growth slowed in July

‘Buyers are obviously stretching themselves to afford the record prices which are increasing far faster than wages,’ Pryor noted. ‘The gap is often being filled by the bank of mum and dad over whom the state has little control.’[1]

Pryor also said that, ‘we have reached the bonkers situation where kids are borrowing money from their parents to be able to afford the prices that their parents’ generation as asking.’[1]

Adam Challis, head of residential research at JLL also commented that while he expects price growth to become more moderate in the long-term, it will, ‘remain ahead of wage improvements.’[1]

[1] http://www.telegraph.co.uk/finance/property/11786449/House-prices-dip-in-June-but-the-warning-light-is-still-flashing.html?utm_campaign=Landlords%20%26%20Property&utm_content=18388153&utm_medium=social&utm_source=twitter

New Licensing Scheme is Extremely Complex, Warns Consultant

Published On: August 14, 2015 at 11:00 am

Author: Em Morley

Categories: Landlord News

Tags: Croydon Property Forum,HMO licensing,landlord licensing scheme,landlords in Croydon,Landlords in Southwark

A property expert has described a new licensing scheme as one of the most complex to date.

The selective licensing scheme in Southwark, London is due to be implemented on 1^st November. It will extend licensing to all private rental homes in some parts of the borough.

New Licensing Scheme is Extremely Complex, Warns Consultant

However, consultant Richard Tacagni says the area included in the scheme is much larger than it appears.

The council states the scheme “includes but is not limited to” certain roads.¹

Tacagni, of consultancy firm London Property Licensing, says the scheme extends to 17 distinct areas, including 5,000 properties on 134 streets.

He advises landlords and letting agents to study the license requirements very carefully.

Alongside the new licensing scheme, the council is extending the existing House in Multiple Occupation (HMO) licensing to all HMOs in the borough. This includes every property that is shared by three or more unrelated individuals and encompasses around 10,000 homes.

The selective licensing fee is £500 per property for five years and the additional HMO fee is £250 per bedroom. This equals £1,250 for a five-bedroom shared house.

Tacagni reveals that this is one of the highest fees in London.

In another borough, a legal challenge against a licensing scheme in Croydon has been rejected by the High Court.

Croydon Property Forum, a group including agents, landlords and developers, applied for a judicial review. The judge, Sir Stephen Silber, denied the application, saying the council had consulted properly.

The borough-wide scheme will come into force on 1^st October.

¹http://www.propertyindustryeye.com/agents-warned-new-licensing-scheme-is-one-of-most-complex-to-date/

Ex-council flat in Covent Garden sells for £1.2m

Published On: August 14, 2015 at 10:51 am

Author: Em Morley

Categories: Property News

Tags: council property,Covent Garden,property market

An ex-council house in the capital has sold for £1.2m, almost 10 times its original price, when it was originally purchased under right-to-buy rules.

The three-bedroom property, located near Covent Garden, was bought from Westminster Council in 1990 for £130,000. Its existing buyers kept the flat until it was sold, fetching just below the asking price of £1.35m.

Mansion

Located in a mansion block, one entirely inhabited by council tenants, the property is also in close proximity to the Royal Opera House.

Barry Marner, of estate agents Bernard Marcus, observed that, ‘with central London property prices at a premium and with demand for properties far outstripping supply, we weren’t surprised that this former council flat reached this impressive price.’[1]

Tracy Kellet, a property agent who purchases property for wealthy clients, believes that council houses were becoming increasingly popular with buy-to-let investors. Kellet said,’ any stigma is waning fast as there’s a whole generation of people who don’t even know what a traditional council house is or was.’[1]