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Better news for landlords with return of buy to let deals
| Author: Craig Bees | Published: 14th July 2020 09:02 |
Bank deals signal buy to let market recovery
Good news this week with reports that the buy to let market is showing signs of recovery as growing numbers of lenders re-start their mortgages for landlords.
HSBC confirmed earlier this month that it had cleared the valuations backlog which had built up before lockdown rules were eased and began to again offer buy to let mortgages.
The bank said that requests for physical valuations are now able to work to the pre-lockdown timetable which should see them completed within four days of a mortgage application being received.
Barclays too has introduced new buy to let mortgages and reduced some of its buy to let rates.
There is certainly plenty of appetite for these mortgages, with some lenders swamped by demand. Ipswich Building Society, for example, reported a 40% increase in buy to let applications in the seven days up to 18 June compared to the previous week.
The building society has had to withdraw its five-year fixed rate buy to let mortgages so that it can process the applications it has already received, though it continues to offer two year fixed rate buy to let deals.
Overall, there are 280 more buy to let mortgage deals available now than there were at the start of June, according to data published in the Moneyfacts UK Mortgage Trends Treasury Report - 46 more two-year fixed rate buy to let mortgage products available for landlords looking to borrow 75% of the property value and 54 more five-year fixed rate deals.
Research shows that average rates on both two and five-year fixed rate buy to let deals have increased slightly since the beginning of May, by 0.08% and 0.09% respectively, to 2.59% cent and 3.03%.
However, rates for landlords wanting to borrow 80% of the property value have fallen, with two-year fixed rates reducing by 0.49% and 0.67% of a percentage point respectively, to 3.12% and 3.65%.
Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “The Bank of England base rate currently remains at its lowest ever level of 0.10%, resulting in further despair for savers.
“However, those looking to invest their money in property now that the mortgage market has reopened may feel now is a good time to explore their options, particularly with rates becoming more competitive and product choice beginning to return this month.
“As we begin to see indications that the buy to let market may be starting to recover, the full economic impact of the current crisis is still not yet clear for tenants and landlords alike.
“However, those who are in a position to consider capitalising on possible falls in house prices to expand their property portfolios, or indeed those looking to switch their current deal, may wish to move quickly.”
Property Q&A: Thank you for the great response to our new feature. Keep your questions coming and we will do our best to answer them. Here is the latest one. Hope it is of some help to you.
Q. Given the latest situation with the lockdown, how can I find the best mortgage rate to suit me, without going to the banks and building societies in person?
A. We’ve automated our website so that you do not have to go to the High Street. Check our website at www.bartramandco.co.uk click on the information tab and choose mortgages from the drop down menu. By scrolling down you can see the top 10 mortgage rates available in the UK in real time, so they are updated automatically as rates change. There’s a stamp duty calculator (the rules for which you may already know changed last week) and an affordability calculator. Call or make an online enquiry.
If you have a property question for us please e-mail it to me at craigbees@bartramandco.co.uk. I look forward to hearing from you.
Badby & Farthingstone CC news: fantastic to report that as recreational cricket was finally given the go-ahead by the ECB, the club enjoying a well-attended and competitive inter-club match last Sunday.
The match was a thrilling affair with the result going down to the final delivery. Well played all and thanks to everybody for abiding by the guidelines.
Matches are now expected to now come thick and fast with several midweek T20 games hastily being arranged to make up for the previously cancelled Sunday fixtures. Watch this space.
Help to Buy Scheme: available on all Moat Lane development properties in Towcester with part exchange also considered. Contact us on (01327) 359164.
Monthly draw: make this month the month you win a case of Italian wines (red/whites/mixed) or one month’s membership at Whittlebury Hall Leisure Club.
How To Enter: every valuation and instruction for sale or rental between now and Wednesday July 29 will be entered, the winners being notified by e-mail.
If you’re thinking of selling or letting your property and want to win one of these great prizes on offer call (01327) 359164 and speak to our sales or lettings team.
Until next time.
Craig Bees, MD Bartram & Co
E-mail me at craigbees@bartramandco.co.uk
Visit our website www.bartramandco.co.uk and follow us on Twitter@bartramandcotow
Tel: (01327) 359164
Fax: (01327) 359166
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