Buy To Let Is Back!
03rd February 2011
To coin a phrase, rumours of the death of the Buy-To-Let market have been grossly exaggerated! As regular readers will be aware, we have stated that 2011 will be a year when more lenders re-enter the Buy-To-Let market as First Time Buyers continue to struggle to get on the housing ladder, rents harden and landlords look to take advantage of a ponderous housing market before the economy really starts to recover fully.
As predicted, the first major release of the year in this sector already looks like a beauty, coming from the company that were synonymous with professional landlords before the credit crunch, Paragon.
Paragon has launched three two-year tracker products, with rates starting from 3.30%, and a three-year tracker mortgage at 3.60%. In addition, the buy-to-let mortgage specialist has introduced three two-year fixed rate mortgage products with rates starting from 4.25%.
Loan-to-values, (LTV’s) across the new products range from 60% to 75% and all products have a 2% fee, which is importantly CAPPED at a maximum of £2,000 where many other lenders have high percentage fees.
Together with a realistic rental calculation based on 125% at a nominal interest rate of 5%, this is especially useful for large mortgage loans up to £1,000,000 on High Net Worth properties.
The products are available for single, self-contained properties and applicants are required to have a minimum income of £40,000 per annum. Applications must be received by 31 March 2011 and the mortgages have to be completed by 31 May 2011.
With other lenders looking to re-enter the buy-to-let market over the coming months this is a good start to what will be an interesting year for those looking to invest in property.
This is Bow, he’s a plucky little Boston Terrier and knows a thing about mortgage applications. His owner, Patrick, is one of our clients and Bow here helps with his paperwork. If there’s anything you need to know about mortgage applications or the paperwork entailed then check out our advice hub – it has everything you need!View the mortgage guides
Andrew Montlake, Director and Spokesperson for Coreco, gives his honest and forthright views on the mortgage market, economy and all things property related. Monty was voted "Mortgage Personality of the year 2008", "Best Press Spokesperson" in 2011 and is the current holder of the British Mortgage Awards “Best Marketeer” title. Expect expert analysis, delivered in a down to earth style with a side helping of exuberance.