Tag Archives: Mortgage

Landlords face buy to let mortgage restrictions

Landlords are expected to face buy to let mortgage restrictions after one lender changed its criteria to demand that rental income was increased before a loan is agreed. The Mortgage Works said it is increasing the amount of rental cover required – which is how much a landlord needs to receive in rent in relation to their mortgage repayments – from 125% to 145%. In addition, the firm, which is the buy to let lending arm of Nationwide, will also not loan to landlords with less than 20% of a deposit and their minimum criteria is now 25%. The move is the Nationwide’s response to an announcement in March from the Bank of England insisting that buy to let mortgage lenders tighten their lending criteria when offering landlords buy to let mortgages. Industry experts are now forecasting that anyone wanting to invest in property will need a 40% deposit for any potential property investment. The managing director of Mortgages for Business, David Whittaker, said the Nationwide’s move did not come as a surprise and other lenders will follow suit. He explained: “The Mortgage Works is one of the biggest buy to let providers and they have taken the lead and […]

Rent arrears hit a two-year high

The number of tenants in the UK’s rental properties with severe rent arrears has reached a two year high, according to a new report. In the Tenant Arrears Tracker, which is put together by Your Move and Reeds Rains, found that there are more than 74,000 tenants who owe more than two months’ rent. The number is up 4.4% on the previous quarter and 7.2% higher than the same period last year. The figures suggest that there are now more than 5,000 households struggling with significant arrears than there were 12 months ago. However, the report also points out that while this situation appears to be serious the level of rent arrears is better than it has been historically. The worst peak of rent arrears recorded by the index   The report points to the third quarter in 2012 when there were more than 160,000 households classed as being in severe arrears. This was the worst peak of rent arrears recorded by the index. In addition, the report also highlights that the probability of a tenant falling into serious arrears is ‘extremely low’ and that the number of households in serious arrears constitutes 1.4% of all private rental tenancies. To […]

Benefit payment delays hit landlords

Delays in housing benefit payments from local authorities have affected more than half of landlords in the private rental sector, says the National Landlords’ Association (NLA). The NLA has published the results of its research which shows that nearly 3.3 million tenants were affected by late benefit payments last year which meant around one third of them had issues paying their rent on time. The NLA’s chief executive, Richard Lambert, said: “Local authorities are not supporting tenants in need of a home while the number of landlords who are willing to have tenants who receive benefits has fallen in recent years. Landlords with tenants on benefits   “Landlords believe that the risk (of having tenants on benefits) is just too great and that’s easy to see when payment delays seem to be inherent within our benefit system.” Mr Lambert added that private landlords are also facing the added pressure with the upcoming government freeze on benefits and the ‘devastating changes’ that are being made to mortgage interest relief. The NLA’s research reveals that 27% of landlords with tenants on benefits are paid directly from a council while the remainder are paid by their tenants after they receive their money from […]

Property fraud hotline set up by Land Registry

The Land Registry has launched a dedicated phone line to help tackle mortgage crime and home ownership fraud.

Guide to buy to let refurbishment loans

Finding the money to refurbish a buy to let poses a problem for many would-be landlords who blow their budget on purchasing a property.

Skint renters take 23 years to save a deposit for a home

Just how much renters need financial help from the government’s Help to Buy mortgage guarantee plans is revealed by new figures that show most would take 23 years to save enough money for a deposit.

EU agrees to keep buy to let loans out of new directive

Buy to let mortgage restrictions proposed under the European mortgage directive look like being struck off the agenda.

Tracking Down Professional Landlord Mortgages

First-time landlords generally have an easier time raising a mortgage to fund buying non-standard properties rental properties than professional landlords with larger property portfolios.

Raising the cash for development projects

Self-building a development project to rent from scratch is viable investment project for many landlords with plots of land – but how do you raise the cash.

Landlord mortgage fraud jumps 40% in a year

Landlords secretly letting out their former homes without telling their mortgage lender the property is a buy-to-let are fraudsters, alleges a new report.