The Good, The bad and the Ugly of buy to let mortgages

THE GOOD Interest rates on buy-to-let mortgages continue to fall, while the variety of deals on offer rises. Skipton Building Society is the latest to cut its rates, shaving up to 0.18 percentage points off its two-year fixed rate deals. They now start from 2.19 per cent while its five-year deals now start from just 3.69 per cent. 'I’ve been investing for years - there are ups and downs' Long-term landlord and buy-to-let commentator Sanjay Arora sees clouds on the horizon for some buy-to-let investors – but believes read more

Anger over first time buyers treatment over 3% stamp duty

First-time buyers and IFAs are baffled by the government’s double standards over when the 3% Stamp Duty premium should be triggered, leaving existing homeowners with additional properties significantly better off. Following a Mortgage Solutions story about the complexities of the Stamp Duty Land Tax (SDLT) surcharge rules implemented on 1 April, confused readers wrote in questioning the fairness of the framework. First-time buyers looking to purchase their one and only main residence, who already have an read more

Average income in 2020 to secure a mortgage (£64K)

First-time buyers will need to earn £64,000 a year by 2020 to be considered for a mortgage, research from housing and homeless charity Shelter shows. The report revealed that fledging homebuyers would need to increase their income by a fifth on today’s requirements of £52,000 a year. Adding to their financial pressures, first-time buyers will need a deposit of £46,000 to keep up with rising house prices, which are projected to climb to £270,000 over the next four years. Shelter is calling on the government to read more

inflation is up

UK inflation as measured by the Consumer Prices Index rose to 0.5% in March, according to the Office for National Statistics. Inflation is now at its highest level since December 2014, but it remains below the Bank of England's 2% target, and the Bank has said it expects inflation to stay below the 1% mark this year. Maike Currie, investment director for personal investing at Fidelity International, said: “March’s inflation figures showed a higher than expected rise in consumer price data over the last 12 months to read more

Buying a house in Glasgow is more cost Effective that Renting

Buying a home is more cost-effective than renting in 48% of British cities, according to a property website. Zoopla analysed the asking prices and rents of two-bedroom homes currently on the market in the UK's biggest cities. It found that buying works out cheaper than renting in many parts of Scotland, northern England and the West Midlands. Glasgow, Coventry and Birmingham were the top three cities for cost-effective buying. Cambridge, London and Brighton were top for cost-effective renting. Top 10 read more

Interest rates at a all time low

Mortgage rates for two and three-year fixed rate deals fell to record lows in February, with borrowers accessing the largest number of products since 2008, according to new research. The average two-year fixed rate mortgage fell to 2.54pc in February, down from 2.56pc in January. The average three-year fixed rate mortgage fell to 2.92pc, down from 3.01pc the previous month, according to analysis of data compiled by the Mortgage Advice Bureau, a broker. The average five-year fixed rate deal also declined, from 3.27pc read more

The bank of England does not believe in a free market

The Bank of England is expected to signal a clampdown on buy-to-let lending when it reports on the mortgage market for landlords. The Bank has been watching the buy-to-let market for some time and is concerned about the amount of money pumped into the market and its vulnerability to even a small rise in borrowing costs. Threadneedle Street’s regulatory arm, the Prudential Regulation Authority, will on Tuesday publish a report on underwriting standards for buy-to-let mortgage lenders alongside scenarios for testing the read more

Purchasing a house 1984 vs 2016

Baby boomer vs Gen Y: home buying in 1982 compared to 2016 Owning a home is more important to young adults than establishing a successful career or even finding the right partner, says new research. Yet the likelihood of being able to achieve the goal of property ownership has never been lower. Those aged 18-40 put home ownership ahead of all other milestones in life, including educational achievements, career success, marrying or having children. The research, by mutual lender Yorkshire Building Society, also found read more

Nearly half aspiring homeowners aged 35 to 40 in ‘crisis’ over homeownership

Research showed almost half of Britons who haven't bought their own home by their mid-thirties doubt it will ever happen. With first-time buyers increasingly squeezed out of the housing market, research from Yorkshire Building Society found that 49% of non-home owners aged 35 to 40 who aspire to own a home say it is ‘unlikely’ or ‘very unlikely’ that they will ever own a property. However, the survey showed more than two-thirds of young adults aged 18 to 40 felt that owning their own home was crucial to success in read more

Stamp Duty extended !!! Will Scotland do the same?

The government has extended the period before the higher stamp duty rate will apply to second homes, and the time in which homeowners can claim a refund, from 18 months to 36 months. This will give those who have an overlap between two properties or are "moving in difficult circumstances" longer to dispose of their main residence. In the Budget documents, the government confirmed that there will be no exemption from the higher rates for significant investors, and that higher rates will apply equally to purchases read more