Posts with tag: buy-to-let deals

New Buy-to-Let Mortgage Deals Announced

Published On: September 11, 2015 at 11:30 am


Categories: Landlord News

Tags: ,,

This week, mortgage lenders have announced a number of new buy-to-let mortgage deals, which they hope will widen the appeal to potential investors.

In the past, NatWest’s buy-to-let mortgages targeted non-professional landlords – those that earn less than 30% of their income from their properties.

However, from today, these restrictions have been lifted, meaning professional landlords can also apply.

Additionally, the bank has removed its maximum loan limit of £500,000.

It says that the new criteria will only apply to new applications, submitted from today onwards.

New Buy-to-Let Mortgage Deals Announced

New Buy-to-Let Mortgage Deals Announced

Acting Head of Sales at NatWest Intermediary Solutions, Paul Kane, explains the decision: “Over the last 18 months we have made improvements to our buy-to-let offering, to grow out presence in this sector.

“Having enjoyed great success and increased our lending, we are now confident that we can significantly grow our buy-to-let business into areas of the market that previously we have not operated in.

“The introduction of our new criteria means that we can now welcome applications from professional landlords, which is something that many brokers have been crying out for.

“The buy-to-let mortgage market has grown significantly over the last six years from accounting for 5% of all UK gross lending in 2009 to 15% in 2015.

“It is the fastest growing segment of the mortgage market in the UK. The changes we are introducing, combined with the recent rate cuts we made across our portfolio, mean we have a really strong proposition for mortgage intermediaries who are serious about this market.”1

The HSBC has announced that it is making its buy-to-let mortgages available to non-HSBC customers for the first time, with applications being assessed on a rental income basis only.

Also, the bank will offer new 60% and 70% loan-to-value (LTV) deals.

Tracie Pearce, Head of Mortgages at HSBC, says the availability of buy-to-let products is now at its highest peak since 2008.

She adds: “High rents and low interest rates mean customers are increasingly seeing buy-to-let as an attractive investment opportunity. The policy and pricing changes we have made will make our range available to even more people.”1

Aldermore Bank now allows borrowers to buy a new home for themselves, while keeping their existing home as a but-to-let property.

Furthermore, the bank has made changes to its residential mortgage and standard buy-to-let mortgage range, including extending family gifted deposits to cover additional family members, foster parents and legal guardians.

Group Managing Director for Mortgages at Aldermore, Charles Haresnape, says: “These changes provide greater flexibility for borrowers and are part of our commitment to continually improve our products and services for all mortgage customers.

“Extending our let-to-buy mortgage offering is a key milestone in Aldermore’s development. It allows homeowners that wish to move, but who do not wish to sell their house or are unable to, to purchase another property.”1




Buy-to-Let Offers Better Returns than Savings Accounts

Published On: May 29, 2015 at 3:23 pm


Categories: Finance News

Tags: ,,,

Buy-to-let investments are becoming an alternative to traditional savings accounts for many, an industry broker has revealed.

Unsubstantial rates on savings accounts are pushing people into property investment, with buy-to-let mortgages offering higher yields.

Buy-to-Let Offers Better Returns than Savings Accounts

Buy-to-Let Offers Better Returns than Savings Accounts

Chief Executive of mortgage broker SPF Private Clients, Mark Harris, says that the sector is attractive and mortgage deals are appealing to new investors.

He says: “The buy-to-let market continues to attract investors fed up with poor returns on savings accounts. With lenders reducing rates and loosening criteria, it is also getting easier to obtain a buy-to-let mortgage.”

Harris notes that aspiring investors should remember that buy-to-let loans generally require higher deposits: “Typically, the deposit required on a buy-to-let mortgage is higher than on a residential deal, with 25% the norm, but there are deals available for those with just a 15% down payment.

“However, rates are higher the smaller the deposit you have. For those with a 40% deposit, two-year fixes are available from 2.25%. If you have a 25% deposit, expect to pay around 50 basis points more. For those with a 15% deposit, the rate rises to around 5%.

“Five-year fixes are available from 3.29% (40% deposit). However, this has a 2.5% fee. If you prefer a flat fee of £2,000, the rate increases to 3.49%.

“Variable rates are available from less than 2% for those with a 40% deposit. This increases by 50 basis points for those requiring 75% loan-to-value [LTV]. Again, for those with a 15% deposit, the rate is around 5%.”1

Harris says that most landlords go for interest-only mortgages, as the interest can be offset against rental income for tax purposes.