Update on B-T-L Lending
While buy-to-let lending is still considerably less forthcoming (to say the least) since it reached its peak three years ago, there seems to be a little movement in this sector as reported by Mark Sorby of J. Montagu Financial Solutions.
1. Nottingham Building Society have just entered the BTL market, which is a welcome increase in the options available to BTL Landlords. They have a range of 75% LTV products, fixed rates from 5.19% and Trackers from 4.59%. In addition, their fees are relatively low (average £395 upfront and £600 added), with some free valuations and lower early redemption penalties.
2. Select Partnership (a J. Montague packager) are now able to source mortgages with some adverse credit. They will ignore Defaults over 24 months old and add up to 2 Default less than £100 each no matter when registered, CCJs over 24 months old, paid off more than 12 months ago or 1 under £250, again regardless of when registered.
3. Kensington are also back in the market as from last week, initially just on residential mortgages but hopefully extending to BTL before too long. In the past, they’ve done a lot of adverse, BTL, specialist mortgages etc, so hopefully another lender coming in is another indication of a better year from the lending sector.
4. Landlords may want to try out a new site, called Zoopla.co.uk, which as well as being a property search site, gives people the availability of checking the value of their property in the UK. Some are instant, some need further input from the enquirer, but it’s a useful tool for landlords and prospective mortgage applicants.
5. Finally, there seems to be an increase in the number of lenders potentially prepared to accept a reduced settlement on their existing BTL mortgages, often considerably less than the amount outstanding. J. Montagu FS have seen 20% reductions lately and have reported having experience of higher discounts, so it’s worth knowing for those landlords wanting to sell but concerned that they may not cover the outstanding mortgage.
For further information you can contact Mark Sorby direct at mark.sorby@jmontagufs.com
By
Madalena Penny
