A welcome reprieve for BTL re-mortgage customers

Santander has amended its buy-to-let (BTL) mortgage prisoner rules to take advantage of the Prudential Regulation Authority’s (PRA) flexibilities. From 19 April, the bank will assess eligible buy to Let (BTL) remortgage applications, where no increase in borrowing is taking place. A minimum of 125% rental cover at a 5% affordability rate will be used. It said this aimed to prevent borrowers who already had a BTL mortgage before the new guidelines were implemented on 1 January from being adversely affected when read more

Bank of MOM and DAD on the increase

First-time buyers’ increased reliance on the Bank of Mum and Dad is worsening inequality and hampering social mobility, a government-backed study by the Social Mobility Commission has found. Over a third (34%) of first-time buyers in England now turn to their family for a financial gift or loan compared to one in five (20%) in 2010, while by 2019 this is expected to rise to nearly 40%. The report, called ‘Impact of family support on home ownership’, found that just a third (30%) of UK households with dependent read more

Mortgage customers losing £1000’s because of apathy

The research from L&C Mortgages also discovered that 30 per cent or 3.4 million households do not know their current interest rate of their mortgage, and with a total £2.78 billion in lost. ‘Lack of awareness’ Standard Variable Rate mortgages (SVR) appear to be the biggest offenders. With 36 per cent of homeowners on SVR mortgages which tend to be higher sees homeowners lose hundreds every month. David Hollingworth from L&C Mortgages explains, “It’s worrying to see so many people still on a Standard Variable Rate read more

First time buyers increase hit all time high BUT landlord purchase hits a all time low

First-time buyer activity rose to from 28% to 36% of market activity in February, as buy-to-let purchases fell below 10% for the first time in five years, per data from Connells Survey & Valuation. First-time buyers now account for a third of activity in the property market – the highest proportion since July 2011. In contrast to the resurgent market for first-time buyers, the buy-to-let purchase market fell to a new low in February. Continuing the decline seen in recent months, buy-to-let purchases almost halved in read more

Look what happens to a industry when you raise taxes on it.

The amount borrowed by prospective landlords fell 16 per cent in the year to January, as strict new rules on buy-to-let homes took their toll. Figures by the Council of Mortgage Lenders (CML) showed would-be landlords borrowed £800m to buy new homes in January, down from £1.4bn the year before, and £900m in December. The number of people taking out mortgages on buy-to-let properties fell to 5,900, from 9,700 the year before, and a peak of 29,100 in March last year. The news came after figures published yesterday read more