Mortgage Market Weekly Update
14th March 2016
Coreco were in the Times this weekend talking about the Buy To Let market and how lenders have been keen to continue to lend and reduce rates in what they see as a profitable area of the market with no real added risk.
As we move into budget week, much attention will be focussed on the final rules of the tax changes proposed and especially the additional 3% stamp duty charge on second properties. Whether or not there will be any last minute changes to what has been proposed will make an interesting statement.
Whatever happens it looks pretty clear that rumours of the demise of Buy to Let have been most exaggerated, with most professional landlords at least expecting it to be business as usual after the changes come into play.
One change is the fact that many landlords will now consider purchasing property in a company name rather than their own personal names and the good news is that lenders have been quick off the mark in identifying and catering for the expected increase in business such as this. Even the big names such as The Mortgage Works and BM Solutions have been considering entering this area, so once things are firmed up in the budget we could see further changes.
Elsewhere, products are still getting cheaper with Leeds Building Society releasing the lowest ever 10 year fixed rate for standard homebuyers. Priced at just 2.75% with a £1,499 fee and available up to 65% LTV it gives longer term planners a real option.
Borrowers can now get a 2 year variable tracker rates from just 1.24% (3.6% APR), with 2 year fixed rates available at just 1.39% (3.6% APR) and a 5 year fix from a mere 2.24% (3.4% APR).
Buy To Let rates are still available from an astonishing 1.73% (4.2% APR).
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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.