May 24 Update on BTL Lending

As mentioned in the last update, Kensington are now back in the Buy-to-Let market, having re-entered the residential market last month. At the moment, their product range is limited but their 2-year Fixed is at 5.69% with the usual 125% rental calculation. However, they don’t credit score any applications, they will allow income verification by Qualified Book-keeper rather than Accountant and they will usually take 100% of Bonuses and Income into account, so generally more applicants can meet the application criteria.

Continuing the trend of lenders expanding their activities, Manchester Building Society have brought out a 2-year BTL deal at 3.99%. Again, they don’t credit score but assess applications individually.

An interesting new entrant, Aldermore, have moved into both the residential and BTL mortgage markets. They promise “a fresh perspective” and do seem to be prepared to look at cases, which other lenders may decline. Their residential products start at 3.98% with BTLs starting at 4.98% for 65% and increasing for 70% and 75% products.

On the residential front, Scottish Widows Bank are providing 90% mortgages for Professionals at keen rates and C&G have brought out a Let-to-Buy product at 90% for those wanting to move and let out their existing property. C&G will accept an Estate Agents letter to confirm the expected rental on the house being rented out.

Finally, there seems to be an increasing demand for properties to let in certain areas.  Places like Manchester seem to have an increasingly buoyant lettings scene – where letting agents are desperately looking for new stock to let out, with rents being generally higher than they were last year. At the same time, however, J S Montague have reported an increase in new mortgage applications in the last month than any month over the last year and a half, so property issues appear to be moving.

For further information on the above BTL products contact Mark Sorby direct at mark.sorby@jmontagufs.com

By
Madalena Penny