New Rules for Lenders on Buy-To-Let Landlords from the Bank of England

The Bank of England (BoE) is introducing new mortgage regulations for landlords. They will come into effect from the 30th September 2017.

It will mean that when applying for mortgages for new properties, most landlords with three or more mortgaged properties that they rent out, will need to give much more information regarding their existing properties, assets, income, liabilities and costs.

How will things change?

At the moment the majority of lenders focus mainly on the value and rental income of the property they are lending against when underwriting buy to let mortgages.

With the new underwriting requirements from the BoE, all lenders will need to collect and validate information regarding every property that the landlord has an interest in when considering their application. This will include collecting information on rental income, property values, mortgages and costs from each and every property the landlord owns.

The reason the BoE has asked lenders to change their approach is that they want lenders to have a full understanding of the financial circumstances of landlords with multiple properties and the impact that any new lending might have on their finances.

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Posted in News

Amazing New Mortgage Deals Released

Last month saw the release off two great offers from different banks, making it even more achievable for you to own your own home.

The Bank of Ireland UK has announced a range of 95% loan-to-value (LTV) mortgage deals to replace the government’s Help to Buy mortgage guarantee scheme which came to a close at the end of 2016.

The purchase-only scheme includes three products which come with a minimum loan size of £50,000.

Deals in the scheme are a two-year fixed rate at 3.89%, a three-year fix at 3.98% and a five-year deal at 4.09%.

The bank stated that it hoped its range will give greater opportunities to first-time buyers, particularly those who are struggling to save a deposit.

Alison Pallett, Director of Sales at the Bank of Ireland UK, said: “We believe that first-time buyers are integral to the long-term health of the housing market, helping to stimulate activity at all stages of home ownership. We hope that this new proposition will help to enable the next generation of home owners to take their first steps onto the housing ladder.”

It was also announced last month by Clydesdale Bank that they will be waiving the valuation fee on their first time buyer range, but for a limited time only.

They are currently offering FTB products including a two-year fixed rate at 3.59% up to 95% LTV. Three-year fixed rates start from 2.89% up to 90% LTV and 3.99% at 95% LTV.

The bank is able to lend up to five times the income (sole or joint) of mortgage applicants, depending on the overall affordability.

They are also reducing rates across its mortgage range by up to 0.50%. Two-year fixed rates now start from 1.34% at 75% LTV. Five-year fixes are available from 2.04% at 75% LTV, rising to 2.19% at 80% LTV.

Here at Limetree Financial Services, we are able to access offers from Clydesdale Bank, where not all brokers can. So do call us today for more information about this incredible deal while it lasts!

Posted in Mortgages, News

Location, location, location: where’s best at what age?

Have you ever wondered about retiring somewhere different? Or what place might be the best to bring up the kids? According to two recent surveys, for family life the East of England comes out top, but for retirement you might want to look West or South.

uSwitch.com has just published its first ever Better Family Life Index and the top three areas are all located in the East of England: Hertfordshire, Cambridgeshire and Central Bedfordshire.

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Posted in Market Watch, News, Uncategorized

Landlords Can Now Cover Rental Shortfall With Personal Income

Back in February our blog included a story about Barclays’ plans to let landlords cover rental shortfalls with personal income. We can now update you on recent developments: the bank has just scrapped its old B2L mortgages to make way for this new approach.

Now, Barclays puts landlords through an affordability assessment to find out whether rental will be met. Where there’s a shortfall, landlords can still potentially get a mortgage if they have enough disposable income to plug the gap. If applications were not completed by July 24th, landlords need to re-submit under this new assessment criteria.

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Posted in Buy-to-let, First Time Buyers, Mortgages, News, Next Time Buyers, Remortgaging

New Demand for Interest-Only Mortgages

If you thought interest-only mortgages perished during the financial crisis, be prepared for a revival in this area of borrowing. But this time, banks have tightened their lending criteria, narrowing the amount of people who can use them.

Take Leeds Building Society for instance. It’s among the first of the lenders to return to interest-only, offering customers an option to only pay the interest on the loan, and pay off the rest of the capital at the end of the mortgage term.

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Posted in Mortgages, News, Next Time Buyers, Remortgaging