In announcing an increase in the minimum loan amount from £100k to £200k, Hampshire Trust remarked ‘We continue to expand and diversify our products and proposition and are the lender you can rely on for genuinely specialist funding solutions. As a reminder, we currently lend on complex requirements including portfolio landlords, holiday lets, HMOs, semi-commercial, serviced accommodation, sitting tenants, new build flats and purpose-built student accommodation. We also lend to foreign nationals, expats as well as trust and offshore borrowers’. ibmco welcomes enquiries in these specialised fields as well as more straightforward residential and Buy to Let mortgages.
The flexibility for Buy to Let mortgage borrowers of being able to fix an interest rate for 5 years whilst only having early repayment penalties for 3 years is to be welcomed. But does the fact that 3 lenders now offer such products suggest this may be more than a passing marketing ploy? Precise Mortgages, The Mortgage Lender and Foundation Homeloans all have 5 year fixes with 3 year tie-ins including products for individuals and limited companies, and products for standard, HMO and multi-unit properties. Enquiries welcomed.
One Savings Bank Group and Chartercourt Financial Group have agreed to a merger it has been announced. The transaction now requires approvals by shareholders and regulators before it becomes final. One Savings Bank includes well-known Buy to Let and Residential mortgage lender Kent Reliance as well as Commercial and Semi-commercial lender Interbay, while Chartercourt will be best known for its Precise Mortgages Buy to Let mortgage brand.
With the new rules for licensing HMOs coming into effect on 1st October, maybe it’s time to repeat the post from 6 months ago on this subject.
The definition of a HMO will be changing, bringing an estimated additional 177,000 properties under the HMO rules, meaning they will also need licensing. Under the new rules any property which is occupied by five or more people, comprising individuals from two or more separate households – regardless of the number of storeys in the property – will be classified as a HMO.
If you own and let a property which will fall into this category, and haven’t already done so, you should apply for a licence before 1st October.
The actual legislation can be found Here
The good news is that ibmco can help raise finance and remortgages for shared letting properties whether a licence is needed or not. So please send us your enquiries. And for example we have access to Precise Mortgages exclusive products for HMOs and Multi-Unit properties offering among other things a 5 year fix with only 3 years tie-in. Contact Pav or David for details.
Slowly but increasingly lenders are considering interest only residential mortgages with no or extended end dates for older and retired applicants. Additionally at least one lender has announced acceptance of properties in retirement developments – where ownership is restricted for example to those over age 55. Traditionally lenders have shunned such properties because of the perceived restricted resale market.
ibmco welcomes these further options for older houseowners. Please contact David or Pav for further information.
Leeds Building Society added a five year fix to their range of Holiday Let products. With a maximum of 70% loan to value the rate is fixed at 2.99% until 31 October 2023. Please contact Pav or David for details.
Precise Mortgages have commenced a pilot scheme of their new refurbishment Buy to Let mortgage scheme. Effectively a combination of bridging loan and Buy to Let mortgage the scheme can provide simultaneously an offer for the initial advance and an offer for the long term BTL mortgage based on expected value after refurbishment. Available now via ibmco – please contact David or Pav for details.
Investment and Business Mortgage Co received approval from the FCA to arrange residential mortgages and the associated protection insurance, as well as its traditional Buy to Let and Commercial finance.
Mint Bridging announce a new auction finance range designed for property investors looking to acquire residential or commercial properties. 70% loan to value, term up to 12 months, interest rates from 0.45% per month.
The Mortgage Works have introduced a new ‘Large Portfolio’ range of Buy to Let Mortgages. These are for customers with more than 10 mortgaged properties. Options include Nil or £995 arrangement fees; free valuations and £250 cashback (purchases and remortgages); free valuations and free legals for remortgages.
Kensington Mortgages announce that from 17th May 2018 they will lend to Limited Company applicants as well as individuals.
The creep of regulation continues…..this time affecting the EPC rating of let properties.
From 1 April 2018, it will be against the law for landlords to grant a new tenancy in England and Wales to either new or existing tenants if the property doesn’t have an Energy Performance Certificate rating from A to E. There are circumstances in which it is possible to apply for an exemption.
This is likely to be reflected in Buy to Let lenders turning down applications if it turns out the property’s EPC rating is higher than E, unless there is an exemption in place.
Of course the aim is to reduce the number of poor and unsuitable rented properties and hopefully the number of properties affected will be few.
But landlords may find it useful to see the government’s guidance :
If unsure about the EPC rating of your property – and if one has been carried out in the past – you can find the details by entering the postcode at the following web address:
Hot on the heels of BM Solutions announcement of £500 cashback on some of its Buy to Let mortgages Virgin Money go one better with a limited time offer of £750 cashback on some of their Buy to Let products. Contact ibmco to find out more.
Investment and Business Mortgage Company LLP is authorised and regulated by the Financial Conduct Authority reference no. 656622
Investment and Business Mortgage Company LLP is a limited liability partnership registered in England and Wales with Registration Number OC341269.
Registered Office is: 191 The Oval, Bingley, BD16 4RJ