July Buy-to-Let Lending Update
It’s been a quiet recently on buy-to let lending. A lack of faith in the industry due to the emergency budget and public sector cuts are being contributed to a slow period of growth. However, this year house prices in general have seen a 3 per cent increase. Rents have increased nationally on an average of 0.5 per cent and buy-to-let residential property prices have also risen by 0.1 per cent, bringing the last 12 months a total sum of an 8.6 per cent increase and yield are reported at about 4.8 per cent.
- Savills Lending Solutions have announced ‘Bridge to Let’ scheme. This enables borrowers to take advantage of a 6-month bridging finance arrangement where significant refurbishment of a property is required, following which the client can borrow at a competitive mortgage rate, thereby allowing borrowing against the enhanced market value rather than the original value/purchase price. There are 2 products, at 70% LTV and 75% LTV.
- The Mortgage Works have announced changes to their Buy-to-Let product range with effect from Friday 2nd July, including adding a new product at a 2-year fixed rate of 5.64% up to 75% LTV.
- On the residential front, Abbey have just brought out a 3.09% 2-year fixed to 70% LTV and a 3-year tracker at 3.21% up to 75% LTV.
- Nationwide released their June House Price Index last week and whilst annual house price inflation was down from 9.8% to 8.7%.
Word has it that the Bank of England won’t be rising the interest rates for the rest of the year……..fingers crossed.
For more information on any of these products contact Mark at mark.sorby@jmontagufs.com
By
Madalena Penny
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