February 2011 Buy-To-Let Finance Update

 

  • Kensington have announced a product linked to a mortgage club so you need a broker to submit it but it's a 2 yr fixed at 5.99% at 85% with a 2.5% fee.  They are the first lender to come out with an 85% product with a competitive rental income of 120% at the product payrate.  The individual needs to have a min income of 30,000 for this product and they will accept one years accounts.  Advances up to £350,000, min property value £90,000. Not for first time buyers. New build max lending 65%. Min age 25. Interest only allowed;
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  • If you are looking for a product with no tie ins, then TMW are offering a 2 yr tracker at 70%LTV with a 3.5% arrangement fee and rental income of 125% at 4.99%.  TMW do not require neither a minimum personal income nor a proof of income, most nowadays require £25,000. Tracker product clients also have the ability to switch anytime onto their fixed product range with no penalty, so for those wanting to make the most of the low tracker rate but concerned that rates may rise this could be a lender suitable for them;
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  • TMW also have a range of products for first time landlords, however do note that the landlord must be a residential home owner;
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  • If you are looking for assistance with the mortgage fees, BM Solutions are offering a 4.2% 1 yr tracker product with a 2.5% arrangement fee, £500 cash back and a refund of valuation upon completion. BMS now have a restriction of 3 BTL properties and a lending cap of 2 million across the whole of the Lloyds TSB group which doesn't tend to make it favourable for the existing portfolio client however for those that don't their range is competitively priced and the 4.2% tracker quoted above has a competitive rental calculation of 125% at 4.2%;
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  • For those who have properties in the south of England, Cambridge BS could be an option. They have 2 products, the lowest being a 3.99% 2 year tracker with a 3.5% fee, using the payrate at 135%. However they require applications to be submitted by paper and lending is restricted to certain southeast regions;
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  • For off plan and unusual property types, Natwest continue to be reliable, offering a 4.99% 2 yr tracker with a £1999 fee. They do however restrict lending to 70% on this product and with a rental calculation of 125% at 6.9% it can be viewed as fairly limiting.

 

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