Latest news with #buyToLet
Daily Mail
22-05-2025
- Business
- Daily Mail
Landlord mortgage rates plummet with HSBC, NatWest and TMW making cuts
Landlords are benefiting from a spate of mortgage rate cuts, with brokers suggesting now could be a good time to lock in a new deal. This week, HSBC cut its market-leading buy-to-let mortgage rates even further. The bank lowered deals by up to 0.25 percentage points, leaving landlords buying or remortgaging in their own name with some tantalising options. Its lowest buy-to-let rate for someone remortgaging at 60 per cent loan-to-value is now 3.74 per cent with a £3,999 fee. The two-year fixed rate deal would mean a landlord remortgaging a £200,000 loan on an interest-only basis could expect to now pay £635 per month, with the fee added to the mortgage. This is a far cry from the average buy-to-let rates being cited by rates scrutineer, Moneyfacts. It says the average five-year fixed buy-to-let mortgage charges 5.29 per cent while the typical two-year fix charges 4.99 per cent. Someone with a £200,000 interest-only mortgage on the average rate could expect to pay £832 on a two-year fix and £882 on a five-year fix. HSBC is also offering buy-to-let purchase rates as low as 3.84 per cent on a five-year fix, if the investor has a 40 per cent deposit and can stomach a £3,999 fee. Those wishing to buy with a 25 per cent deposit can secure a rate of 3.94 per cent with HSBC, again with a £3,999 fee. HSBC is offering lower fee options which may work out cheaper depending on the mortgage amount required. You can work out the true cost of rates and fees using This is Money's mortgage calculator. Another lender to cut rates recently is NatWest. It is now offering a 4.1 per cent rate with a £995 fee for landlords buying with a 40 per cent deposit. For those buying with a 25 per cent deposit, it is offering 4.33 per cent with a £995 fee. Aaron Strutt, of mortgage broker of Trinity Financial, said: 'Mortgage lenders have been busy lowering their buy-to-let rates for quite a while now as they try to tempt landlords to take their deals. 'There are lots of high fee and low rate products designed to help landlords either get sufficiently large mortgages, or ease their cashflow when they remortgage. 'We are still arranging a fair few buy to let mortgages, often for landlords buying in the north of England or through a limited company. 'There are a lot of remortgages coming up as well and landlords are clearly keen to get the cheapest possible rates. 'This often means they switch to a new lender because there is so much competition in the market.' Low rate, high fee mortgages gain popularity The Mortgage Works (TMW), which is the buy-to-let lending arm of Nationwide Building Society, also lowered its buy-to-let rates last week. It is now offering a 2.79 per cent two-year fix with a fee equal to 3 per cent of the loan, for those buying with a 35 per cent deposit. On a £200,000 interest-only mortgage that would work out at £468 a month with a £6,000 fee. Adding the fee to the mortgage would equate to £480 a month. 'This is a great product for landlords needing to remortgage and avoid a repayment shock, even though it has a chunky fee,' said Strutt. 'One of our clients just took a similar low-rate and high-fee buy-to-let deal because she had equity in her buy-to-let property and used the rent to supplement her income. 'This product isn't for everyone, and the fee is high, but the headline rate is ridiculously low, which certainly helps many landlords who want to maintain their cash flow. 'The rate is equivalent to 4.29 per cent with the fees included.' This low fee and high rate combination appears to be becoming more widespread. One lender, Capital Home Loans, has a 2.35 per cent fixed rate deal with a 7 per cent fee. But most lenders offer the choice between a 'high fee and low rate' or a 'no fee and higher rate' alternative. For example, buy-to-let lender BM Solutions has a 4.32 per cent two-year fixed rate with no fees at 50 per cent loan-to-value and a 2.93 per cent buy-to-let rate at 50 per cent loan-to-value with a 3 per cent product fee. 'Lenders have been constantly lowering their buy-to-let rates to try and attract landlords and we are now at the stage where rates are often cheaper than the residential rates,' added Strutt. 'Historically, buy-to-let rates have always been higher than the residential deals, but these sub-3 per cent products show how keen the lenders are to issue more mortgages to landlords. 'Many of the high fee and low rate buy-to-let mortgages have been designed to help landlords access larger loans. 'In many cases rental properties do not generate enough rent for landlords to access the loan sizes they need to buy or remortgage, especially when capital raising.' Best mortgage rates and how to find them Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs. That makes it even more important to search out the best possible rate for you and get good mortgage advice. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C. This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit. You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes. If you're ready to find your next mortgage, why not use This is Money and L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
Times
15-05-2025
- Business
- Times
The best places for landlords to buy — our expert guide
The complaints of buy-to-let landlords usually trigger a concert of the tiniest violins from much of society. However, the question of whether investors are still choosing to buy property or are instead giving up and selling up is of great importance for millions of us. After all, a country that's short of rental properties risks the possibility of rents rising through the roof for its five million tenants, leaving them with even less chance of being able to save money to buy a home one day. Data released on Monday by the estate agency Hamptons shows that Britain's near-30-year love affair with buy-to-let seems to be diminishing, with landlords purchasing 10 per cent of all the homes sold in Britain in the first four months
The Independent
15-05-2025
- Business
- The Independent
18% quarterly jump in homeowner mortgage repossessions
The number of mortgaged homeowners having their home repossessed jumped by nearly a fifth in the first quarter of this year, compared with the previous three months, according to figures from a banking and finance industry body. Some 1,220 homeowner repossessions were recorded by UK Finance in the first quarter of this year, marking an 18% rise compared with the last three months of 2024. There were also 810 buy-to-let home repossessions in the first quarter of this year, marking a 16% rise on the previous quarter. UK Finance said that, although repossession numbers increased, they remain low compared with the longer-term. It said that the 2,030 homeowner and buy-to-let repossessions in the first quarter of 2025 was significantly lower than the 13,200 repossessions seen in the first quarter of 2009, during the global financial crisis. Current repossessions predominantly relate to older mortgages, the report said, with more than two-thirds of repossessions relating to mortgages arranged at least a decade ago. UK Finance said that lenders will always seek to ensure customers remain in their homes and repossession is only ever a last resort after other options have been explored with the customer. The figures also showed that in the first quarter of 2025, there were 90,140 homeowner mortgages in arrears. This was a 2% decrease compared with the fourth quarter of 2024. The number of buy-to-let mortgages in arrears fell by 6% compared with the previous quarter, to 11,830. UK Finance said the number of homeowner and buy-to-let mortgages in early arrears has fallen, indicating that any rise in total arrears in the next quarter would be limited. It said anyone who is worried about their mortgage payments should reach out to their lender at the earliest opportunity to discuss the options available. Some mortgage rates have been drifting downwards in recent weeks, amid expectations over Bank of England base rate cuts. Several lenders have also recently changed their affordability assessments to make it easier for some borrowers to access mortgage finance. Charles Roe, director of mortgages at UK Finance, said: 'The number of mortgages in arrears fell slightly compared to the previous quarter and the arrears numbers appear to now be on a downward trend. The recent cuts in interest rates and mortgage rates will also help households with their monthly bills. 'This is a positive development, but we recognise that some households may still be struggling. Lenders are committed to supporting anyone facing financial difficulties and offer a range of tailored solutions. If you're worried about your finances, please reach out to your lender as soon as possible to discuss the help available.'
