In the past year, interest rates on buy to let mortgages have fallen by 1%. Average interest rate on 2-year fixed-rate deals fro landlords dropped from 5.7% in September 2010 to 4.8% today, some analysts claim.

More on this and about offset mortgages can be found here.

We all know that the investment in property has outperformed all the other investment options in the current era of economic downturn. And to purchase a good property for investment you will need the help of buy to let mortgages broker.

Why help? Well you would definitely want your investment property you would definitely look to gain long term benefits and these buy to let mortgage companies guide people in deciding the right property instead of short term pain.

Buying a property in such a huge market isn’t an easy piece of cake. Just being overconfident and over ambitious in working out your return can sometimes lead the investors to wrong decisions which cannot only be frustrating but not profitable in the long run.

A Few advantages

Rental Income – Investment properties can work as a supplement for your day job. So if you want to retire early or cannot work anymore due to health issues, this investment property can get you significant income.
Better Location Better Return – Its important to have your buy to let mortgage property in a busier location. This will mean that there is always a tenant looking to rent the property from you. With the property that is high in demand, you can always ask for higher rent thus giving you better return on your investment.
Capital Growth: if you buy an investment property that is below the market value, there are always good chances of capital growth on that property. If taken on the futuristic scale, you often make money at the time you buy a property and not just at the time you sell.
The Buy to let mortgages market is a very risky area of property investment. Thus you should always be careful as you are dealing with your money. Its better to take professional advice from a buy to let mortgages broker or a company before you step into property investment.

Buy to let mortgage brokers are the people whom you trust because they want to help you get the business to another level.

Who needs help from buy to let mortgage brokers?

Are you a person involved in producing company or at an individual level? Are you an AR who has become the victim of strict rules in your business practices and provider collaboration? Have you become fed up with the wave of rejection which had as a main consequence limiting your possibilities to use several lenders for no particular reason?

Are you directly authorised and interested about PI, compliance and systems? Do you have in mind getting access to a higher panel of protection providers?

If your answer to all these questions is yes, then it is better for you to make up your mind about changing network.

Companies and buy to let mortgage brokers

There are companies which are more than willing to design a scheme for the general issues which have a negative impact on many buy to let mortgage brokers. Making up your mind about buy to let mortgage brokers basically means a chance to receive access to the whole buy to let mortgage market.

Buy to let mortgage brokers are also able to offer a less expensive alternative for individuals who plan to get properties with the only aim of renting them.

The buy to let industry has witnessed an astonishing evolution in the last years and as a result now landlords get the opportunity and profit from the benefits it gets them. If people have in mind to invest in a house they already possess and then rent it out they can make large sums of money in a mater of months.

These experienced brokers are here to offer all these people with the right things to say and offer help to those who really want it. The major thing in getting advice is to get an appointment with an independent broker or with one working for a buy to let mortgage Broker Company.

The number of available mortgage deals is the same as it was in early 2008, before the banking crisis reached its peak.

There are 2,557 mortgage types on offer, but 64% are required at least a 20% deposit and only 2% require a deposit of 5% or less.

The mortgage rationing for the last few years has caused home sales to decrease by more than half.

Moneyfacts, that created the survey, said that people with small deposits are still limited when it comes to getting a loan.

“While the number of deals for borrowers with a 5% deposit or less has increased, the majority require a guarantor to qualify or are from lenders which offer restricted lending,” said Michelle Slade of Moneyfacts.

“First-time buyers still really need at least a 10% deposit before they can find any real mortgage options.”

Michelle Slade said creditors are concerned with borrowers defaulting if interest rate rose, and that they focus on lending money to people who could put down at least 25% of a deposit.

Source: BBC

The rates of interest will remain at 0.5% again by Bank of England’s Monetary Policy Committee.

Richard Barker, mortgage manager at Norwich & Peterborough, says: “The decision to leave Base Rate unchanged at 0.50% for the 30th month in a row was widely expected across the market.

“Although the current Consumer Prices Index inflation figure remains well above the government’s target, the UK economy remains relatively fragile at present and any increase is now predicted to occur in 2012.

“Recent housing market data suggests that house prices fell slightly in August and affordability for first time buyers is stretched, further reinforcing the argument to keep rates on hold for longer.”

Source: Mortgage Strategy

Private rates are currently being pushed higher, according to the latest report from the Royal Institution of Chartered Surveyors (Rics).

People who wanted to buy a home but had their dream shattered, are now looking to rent but the demand is greater than the supply.

Tenants on housing benefit made up 13% of all letting, and this is the highest level since the survey began in 1999.

Risc said this happened due to the “challenging” state of the economy.

“The imbalance between demand and supply is thought likely to persist, with the survey results suggesting that further gains in rents are likely over the coming months,” Rics said.

“One of the main drivers of the strong demand for rental property continues to be would-be buyers who have moved to the lettings market after struggling to find mortgage finance, or first-time buyers unable to meet lenders’ deposit requirements,” Rics added.

The survey was based on the answers of 156 Risc members who work as letting agents, for the three months to July.

Source: BBC

The Council of Mortgage Lenders will organise the Industry Conference and Exhibition 2011 in upcoming November, in collaboration with Crown Mortgage Management. The companies seek to display guidelines to mortgage lenders who wish to have a safe future when it comes to the level of stability of the mortgage market.

Both investors and clients have been having a hard time trying to regain control on the shaky mortgage environment, so this conference programme plans to provide information in detail in order to cover the most important problems that lenders are facing. These include:

• The Bank of England’s attitude and intentions towards the UK mortgage market
• How present and future regulations (including the MMR) will influence the mortgage industry
• Case studies of new lenders and of the challenges they are facing
• The future of conveyancing
• Funding and distribution of mortgage

The CML Mortgage Industry Conference and Exhibition 2011 marks its third edition, and senior level speakers of the mortgage business will attend, including the deputy Governor of the Bank of England and 12 chief executives or of equivalent job level on behalf of UK mortgage creditors.

Participants to the event will have the chance of booking appointments with speakers, other delegates and exhibitors. Moreover, delegates will be able to share their mortgage experiences.

The exhibition is expected to attract thirty exhibitors that are related to your business, for over 300 senior mortgage professionals, so be sure to attend the event on the 3rd of September in London.

For more information click here. ]]> http://www.buytoletmortgages.org.uk/cml-mortgage-industry-conference-and-exhibition-2011-in-collaboration-with-crown-mortgage-management/feed 0 http://www.buytoletmortgages.org.uk/first-time-home-buyer?utm_source=rss&utm_medium=rss&utm_campaign=first-time-home-buyer http://www.buytoletmortgages.org.uk/first-time-home-buyer#comments Sun, 27 Feb 2011 11:43:21 +0000 master http://www.buytoletmortgages.org.uk/?p=555

The housing market has been hurting for many months as the demand from buyers has dropped.  It is important to the housing market industry and the economy that a flow of new buyers is constantly coming into the market but that has slowed recently.  Lending has been difficult to obtain for new buyers and deposits have been very high and often out of reach.

It is the lack of new buyers entering the market that pushed Housing Minister Grant Shapps to call a summit meeting with housing market leaders to discuss how to remedy the problem.  Either new lending policies or procedures could perhaps drive new life into the market by opening up the possibility of home ownership to more people.  Without the constant influx of new buyers both the housing market and overall economy suffers.

Banks and building societies stated during the meeting that there were no easy answers to the problem.  Until the economy installed confidence back into the consumer as well as the lending industry it would be awhile before normal levels were seen in new buyers coming into the market.  In the last few years the number of first time buyers has drastically dropped as deposits required increased and lending tightened.

According to the Council of Mortgage Lenders (CML) in January the average first time home buyer was required to put down a deposit of 23 per cent which amounted to £31,500.  When compared to the averages from three years ago of 11 per cent and £13,900 it is obvious that the average is now out of reach of many.  Of those able to supply a deposit of that level most have had to borrow from family.

The CML has warned that the lack of availability of mortgages was unlikely to change in the months ahead and that the regulations lenders are required to fulfill is making it less likely that there will be a change for a long time.  Lenders are required to maintain capital levels much higher for 90 per cent LTV mortgages than for lower ones and therefore the lending on higher LTVs will not come on the market at affordable rates, if at all.

Michael Coogan, director general of the CML, said: “It is good to see ministers taking the initiative to discuss how we can look to improve market conditions for first-time buyers. But no-one will be surprised to learn that there is no simple quick fix for a market that has changed fundamentally since the credit crunch.”

Mr. Shapps is worried that not only are the first time buyers being put out of the market they could likely continue to be for long periods.  Currently the average age of a first time buyer is 37 years old.  The minister wants industry leaders to find ways to bring people onto the property ladder such as the new program introduced by the Scottish Government that is going to help housebuilders and first time buyers in low to moderate income levels in rural areas obtain homeownership.

Graeme Hartley, director of the Royal Institution of Chartered Surveyors Scotland, welcomed the initiative to help first time buyers, but he cautioned that it “merely scratches the surface of our major housing problem”.

He stated: “This scheme may help a minority of first-time buyers but looks more like a scheme to honour a manifesto commitment in the run-up to an election. Those who aspire to own their own home may have to accept, for the time being at least, that renting is the only option or turn to the ‘bank of mum and dad’ to find a deposit.”

The fact that the topic is a matter of importance has made many happy but there are critics that believe the problem needs to be more than a topic it needs to be a priority.  The housing market needs a boost and first time home buyers need help too.  There may not be an easy answer but there needs to be a concerted effort to find a solution.

As the UK housing market continues to struggle, it is good practice to glimpse at the levels of recovery in other countries. It has of course been especially difficult in the US where the housing market crisis is blamed for the ripple effect that collapsed world economies. While the majority of the US is still far way from recovery, it comes as a small glimmer of hope that the real estate market in Manhattan is showing gradual signs of recovery.

One of the key indicators that can help determine growth in the housing market is that the average price is moving up. The median price did show a 4% increase but an independent appraiser, Jonathan Miller, of the real estate brokerage firm Miller Samuel said the increase is deceiving.

A lot of the properties sold were large properties and many to foreign investors according to one report. That meant that larger properties were being sold, leaving smaller ones still on the market. This could very well point to the same problem that is occurring in the UK, with new home buyers being shut out of the market. There continues to be high jobless rates in limited lending in the US.

Here in the UK affordable credit is out there and lenders are willing to voice that as often as possible. However, the ability to qualify for credit to purchase a new home is very difficult. The high required deposits on property are out of reach of the average family. Some would be required to save their entire annual income to make a deposit.

There are those that are getting help from family and friends to raise the deposit. A common source has been pulling equity out of a home through remortgage by a family member.

It is a difficult market but homes are available in surplus in many areas of the UK. This pushes prices down and so there is more purchasing value, as buyers find good value in their buying price, as opposed to the opposite during the boom years.

The low interest rates and lower home prices are attractive to those seeking to invest in a buy the lease. More are remortgaging to invest in affordable investment properties, which is common in a slow market. The demand for rental property will continue to increase as buyers are kept out of the market.

The buy-to-let mortgage market continued to grow in November, according to data released by Countrywide, UK’s largest property services group. November saw a 4% increase in applications. The market for good rental properties has seen a steady increase in demand, and supply continues to remain low.

The house purchasing lending market has been difficult for many to enter. Lending has tightened and being able to secure a mortgage loan is difficult for many. The required deposits are outside the reach of many without substantial help from family and friends.

When families and young adults seek to live independently and cannot purchase their own home, then rental property is their only option. The demand for rental property has continued to increase and while the supply is increasing, demand far outweighs supply and is expected to be that way for some time.

Countrywide reported that the increase in buy to let mortgages lending activity over November reflects the growth of new properties entering the private rental sector. Those new properties entering the rental market increased by 7.75% in November. They stated that despite More than 14,000 new tenants registering for rental accommodation in November, the supply of rental properties remains low in contrast to demand.

The constricted lending market is of course having an impact on the availability of new property coming available for renters. Buy-to-let borrowers are also finding that deposits and the availability of securing lending to be difficult.

The average interest rate of the top 10 mortgages applied for by the Countrywide customers was 4.3%, down 0.31% from October reporting. Those seeking fixed rate mortgage products increased by 3% over tracker loans. Fixed products made up 76% of all mortgage applications in November 2010 by Countrywide customers.

According to the report, the 7.75% increase of new properties entering the rental market in November marked the seventh consecutive monthly increase. The 14,000 new tenant applications in November were in line with seasonal trends as being lower than the record highs set in the summer months. However, when compared to November 2009 there was a 14% increase.

Grenville Turner, Countrywide’s chief executive, reported: “Despite the subdued market conditions, our mortgage applications rose 5.8% in November compared to the previous month. The largest increase in mortgage applications came via remortgage customers, with the total number of cases jumping 24% to make up 29% of all mortgage applications in November.”