This deal will also assist clients looking to get expand their portfolio of properties and who do not want to put in a large deposit. Please note, however, that “First Time” landlords are limited to a maximum borrowing of 70% of the property value.
The Lloyds TSB Group have announced that they have reviewed their offering of Interest Only mortgages for deals above £500,000. They have declared that clients are no longer able to use inheritance, sale of main residence or sale of a business as sufficient to cover the debt. The lender has declared that the client needs to have a suitable repayment vehicle in place. This does make these mortgages harder to place and affordability does become a bigger factor.
Cheltenham & Gloucester has launched a two-year tracker for first-time buyers, which tracks at 0.01% below the Bank of England base rate. The Low-Start tracker, currently 0.49%, is available for loans between £25,000 and £750,000 and at between 85% and 90% LTV. But the tracking rate of 0.01% below base rate only lasts until December 31 2010, at which point the rate jumps to base rate plus 5.49% until July 31 2012. So a potential help for first time buyers getting started but they must budget for the early bump up in cost.
Andrew Fowler worked for Limetree Financial Services until December 2010. Feel free to contact another member of our team for help or advice.