Buy-to-let bulletin February 2012 contents
Business Moneyfacts award winners . . . . . . . . . . . . . . . . . . . . . . 20 Buy-to-let rent ready reckoner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Buy-to-let selection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Guide to property types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Islamic buy-to-let home finance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Market review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 What’s new? What’s been replaced? What’s gone? And the rest..........
Mortgage repayment table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Most consistent lenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Procuration fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Payable to authorised professional introducers
Regulation for buy-to-let mortgages . . . . . . . . . . . . . . . . . . . . . . . . 25 Rental and/or earned income considered. . . . . . . . . . . 22-23 Useful contact points. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Who accepts holiday or student lets?. . . . . . . . . . . . . . . . . . . . . . 21 Who offers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Base rate trackers? . . . . . . . . . . . . . . . . . . . . . 25 Incentives? . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Fee free products?. . . . . . . . . . . . . . . . . . . . . . 23
Buy-to-let bulletin Buy-to-let selection
1 AND 2 YEAR FIXED RATE SELECTION Rate
THE MORTGAGE WORKS NOTTINGHAM BS NORTHERN ROCK PRINCIPALITY BS
GODIVA MORTGAGES NOTTINGHAM BS
3.49% fixed 3.59% fixed 3.75% fixed 3.89% fixed 3.99% fixed 3.99% fixed
3 AND 5 YEAR FIXED RATE SELECTION Rate
LEEDS BS
GODIVA MORTGAGES NOTTINGHAM BS MANCHESTER BS SKIPTON BS LEEDS BS
3.99% fixed 4.35% fixed 4.49% fixed 4.79% fixed 4.89% fixed 4.99% fixed
Term Max LTV Product Fee Max Property Max Total First Time Portfolio
31.3.13 75% 3.5% of advance Unlimited Refer 1.1.14 1.3.14
60%
31.12.13 60% 31.12.13
1.1.14 75% £1999 10
70% 2.5% of advance 10 £999
10 10
65%£9503 £1m £1999
Advance Buyers? No
£1.5m No £3m Yes £1m
£1.5m
No No No
Term Max LTV Product Fee Max Property Max Total First Time Portfolio 4 3
28.2.15 60% 31.12.14 65% 1.2.15 75%
£1499 £1249 £1299
5 years 70% 2.5% of advance 31.1.17 70% 28.2.17 70%
2% £999
DISCOUNTED AND VARIABLE RATE SELECTION Rate
PRINCIPALITY BS NOTTINGHAM BS MANSFIELD BS
NATWEST INT SOLS MANSFIELD BS
BANK OF CHINA (UK)
2.84% variable 3.29% variable
Advance Buyers? £1.25m No £1m
10 4 5 4
£1.5m
No No
Unlimited No £1m
No £1.25m No
3.75% discounted 2 years 70% 3.89% variable
31.3.14 75%
3.80% discounted 3 years 70% 3.88% variable
Term 75% Market review What’s new?
ALDERMORE: 80% loan-to-value fixed rates of 5.88% for 2 years, 5.88% and 6.28% for 3 years and 6.48% for 5 years. Fixed rates of 4.98%, max 65% and 5.68% for 3 years, max 75%. Remortgage only 5.88% fixed for 5 years, max 75%. LEEDS BS: fixed rates of 5.69% and 5.99% to 28.2.14, max 80%. MANCHESTER BS: new fixed rates of 4.79% and 5.39% for 5 years. MARSDEN BS: discounted rate of 4.44% to 28.2.15.
BEST BUY-TO-LET MORTGAGE PROVIDER
Winner - BM SOLUTIONS Highly Commended - THE MORTGAGE WORKS Commended - GODIVA MORTGAGES
BEST SERVICE FROM A BUY-TO-LET MORTGAGE PROVIDER
Winner - GODIVA MORTGAGES Highly Commended - BANK OF CHINA Commended - BM SOLUTIONS
Due to the changing buy-to-let market conditions, this year has seen the categories at the Business Moneyfacts Awards remain as they were in 2010. We will continue to assess where activity in the sector lies and reflect this in the 2012 categories.
What’s been replaced?
ALDERMORE: discounted variable rates of 4.98% and 5.08% reduced to 4.78% and 5.08%. Remortgage only fixed rates of 6.28% and 6.48% for 5 years withdrawn. 3 year fixed rates replaced with 4.48%, max 65%, 4.98%, max 75% and fee 2.5% of advance and 5.88%, reduced by 0.10%. BIRMINGHAM MIDSHIRES SOLUTIONS: variable tracker rates of 4.24% and 4.39% for 1 year, 4.65% and 4.80% for 2 years increased by 0.50%. Variable tracker rates of 4.09% and 4.24% for 2 years increased by 0.15%. Fixed rates of 4.60%, 4.75%, 5.24% and 5.39% to 31.3.14 increased by 0.25%. Fixed rates of 4.30% and 4.45% to 1.2.14 reduced by 0.50%. FURNESS BS: discounted variable rate of 4.19% for 2 years increased GODIVA MORTGAGES: variable tracker rate of 3.29% increased to 3.39% and end date extended to 31.3.14 and end date on fixed rates to 31.12.16 extended to 31.3.17. MONMOUTHSHIRE BS: fixed rate of 5.29% for 3 years withdrawn and replaced with 4.49% and 4.09% for 3 years for house purchase and 4.20% and 4.69% for 3 years for remortgage only. All available within the lender’s restricted postcode area. MORTGAGE TRUST: range withdrawn and replaced with new variable rates of 4.50% for 2 years, max 75%, fee 3% and 4.99% for 2 years,
max 75%, fee 2%, with rates based on LIBOR plus loadings. New fixed rates of 5.24 to 31.3.14, max 75%, fee 3%; 5.74% to 31.3.14, max 75%, fee 2%; 5.49% to 31.3.15, max 75%, fee 3% and 5.89% to 31.3.15, max 75%, fee 2%. NORTHERN ROCK: variable tracker rates of 3.79% and 4.38% to 1.3.14, with £995 fee increased by 0.30% and 0.31% respectively. Fixed rates of 3.98% and 4.10% to 1.3.14 with £1,995 fee increased by 0.22% and 0.25% respectively; 4.49% and 4.59% to 1.3.14, fee £995, increased by 0.30% and 0.40% respectively and 4.90% to 1.3.14, no fee, increased by 0.41% and 0.29% respectively. PARAGON MORTGAGES: range withdrawn and replaced with an expanded range of new stepped variable tracker rates starting at 4.70% for 2 years, followed by 4.85% for the next 3 years up to 5.40% for 2 years, followed by 4.85% for 3 years and new variable rate of 5.35% for 5 years. New fixed rates from 5.30% for 2 years and 5.65% for 3 years. WOOLWICH from BARCLAYS: range withdrawn and replaced with new variable tracker of 3.99% for term and fixed rate of 3.98% to 2.3.14, both max 60%, fee £3,999.
What’s gone?
FURNESS BS: fixed rate of 5.30% to 31.8.16. MELTON MOWBRAY BS: 4.89% fixed to 30.11.16 And the rest...
ALDERMORE: maximum property portfolio increased to 5 properties excluding residential, within an overall total of £2m. Product revert rates reduced to 4.98% at 65%, 5.48% at 75% and 5.73% at 80%. CAMBRIDGE BS: incentive of free valuation withdrawn. MARSDEN BS: all products now with a £250 rebate for remortgages. MORTGAGE TRUST: 3 month LIBOR re-set at 1.1%. PARAGON MORTGAGES: 3 month LIBOR re-set at 1.1%.
Term Max LTV Product Fee Max Property Max Total First Time Portfolio 10 10 5
31.12.13 60% 2.5% of advance 2 years 60%
£1299 £799
£1999 £799
Min £1895
10 5
10
Advance Buyers? £1m No £1.5m No £500K £3.5m £500K
Yes Yes Yes
£2m Yes
READERS ARE REMINDED THAT BUSINESS MONEYFACTS IS COPYRIGHT
February 2012
BUY-TO-LET MORTGAGES
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