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Commercial News
Lack of mortgage finance hampers landlords
One in 10 landlords plan to pur- been a popular choice with pro- mortgage in Q4 2009 than Q3. A more difficult to source mortgage
chase residential property for fessional property investors quarter (26%) said that there was finance in the fourth quarter than
investment purposes in the first because it is well-constructed, no difference, with 7% stating in the third, and we see nothing to
quarter of 2010, but they continue liked by a wide range of tenant that they found it easier to secure suggest that the situation will
to be hampered by a lack of suit- types and can generate strong mortgage finance between the two improve quickly.
able mortgage finance. rental yields. quarters. ”Most buy-to-let lenders cur-
Paragon Mortgages’ Trends However, mortgage finance John Heron, Paragon rently active in the market
research reveals that 10% of land- looks set to remain a serious issue Mortgages’ managing director, employ aggregate or maximum
lords want to expand their portfo- for residential property investors said: “It is encouraging that land- lending levels, placing a ceiling on
lio in the first three months of in 2010, with mortgage conditions lords are still active in the market the number of properties they
2010. Of those looking to pur- worsening in the final quarter of and are looking to expand their will lend against, which makes it
chase, terraced housing is by far 2009. Landlords reported that it portfolios. With tenant demand at difficult for professional land-
the most popular choice of prop- was more difficult to secure mort- such strong levels and soft house lords to expand portfolios
erty. gage finance during the fourth prices presenting the opportunity because they are usually already
Nearly two thirds of those sur- quarter than in the previous three for bargains, it is easy to see why. at those lending levels. It is ironic
veyed (65%) said that they would months. But investors continue to be frus- that the criteria employed by
look to purchase a terraced prop- Of those that applied for a trated by a lack of choice and most lenders favours inexperi-
erty, followed by semi-detached mortgage for portfolio expansion competition in the buy-to-let enced landlords over those with
houses (25%), flats (20%) and or remortgaging purposes, an mortgage market, which is domi- proven track records in residen-
detached property (10%). overwhelming 67% said that it nated by just two lenders. tial property investment and
Terraced housing has traditionally was more difficult to secure a Landlords have told us that it was management.”
2 February 2010
Venue: PKF, New Guild House, 45 Great Charles St, Queensway,
Birmingham B3 2LX
NACFB Member Services:
Arrival 10am
Training Day, Leicester
To help you in identifying the opportunities (and pitfalls!) of these
situations, PKF is running a workshop for NACFB members.
The workshop will cover:
Venue: Croner House, Wheatfield Way, Hinckley, Leicestershire
lTurnaround strategies
LE10 1YG
lUnderstanding the various insolvency and recovery processes
Registration: 10am
lBuying a business from an Administrator or Administrative
Ends: 2pm (includes lunch)
Receiver
Morning Sessions from:
lPhoenix businesses
Croner, Legal & General, Towergate Risk Services,
lPre packs
CommercialKeeper
lRestricted use of the company name and the director’s future
personal liability
4 February 2010
NACFB Member Services:
11 February
Training Day, Cardiff
NACFB Member Services:
Training day, London
Venue: Legal & General, Knox Court, 10 Fitzalan Place, Cardiff, CF24
0TL
Venue: Legal & General, One Coleman Street, London EC2R 5AA
Registration: 10am
Ends: 2pm (includes lunch)
Registration: 10am
Morning Sessions from:
Ends: 2pm (includes lunch)
Croner, Legal & General, Towergate Risk Services,
Morning Sessions from:
CommercialKeeper
Croner
Croner, Legal & General, Towergate Risk Services,
10 February
CommercialKeeper
PKF Workshop - Help your
client through tough times
February 2010 Mortgage Introducer www.mortgageintroducer.com
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