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Thursday, 20 August 2009 13:53 |
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 BM Solutions reduce buy to let rates
Something of a rarity these days is news that a lender has reduced their rates. And at the weekend BM Solutions did just that (What, didn’t you see our rate alert?).
The actual reason for this rate reduction is a little confusing - well it is for me anyway. BM are one of the few 75% buy to let lenders around and therefore do not need to try for market share at the moment. Dropping their rates will hardly affect their volumes (their credit scoring will make sure of that); however, it is a good sign that they are still committed to the buy to let market.
Mortgage Lending still increasing
Even more good news from the Council of Mortgage Lenders that gross lending was 26% higher in July than in June. Keep it coming.
New lenders? Rumours emerge
Over the last couple of weeks there have been rumours in the mortgage trade press of 3 big lenders considering a return to the UK mortgage market. Kensington is one of the names being written about. Let’s hope its sooner rather than later, as we definitely need some competition in the market – although I wouldn’t expect a Kensington 90% buy to let mortgage returning quite yet! The significance of any new mainstream lender would have very positive effect on the confidence of both buyers and sellers, and crucially it could lead the way for others. Watch this space.
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Tip of the week 1: Estate Agents overcharging for HIPs
BBC’s Watchdog has revealed that many vendors are being charged excessive amounts for Home Information Packs. In some instances up to £500 when a competitive cost would have been nearer to £200. So, the moral of the story is - don’t use an estate agents HIP, but go to low cost providers like http://www.hips4u.com/ and save yourself some money. There are many others if you would like us to point you in the right direction. Tip of the week 2: Selling a property? Then consider this a giftMany investors are still buying and then selling in this current environment, so here’s a tip for them. If your target market are primarily first time buyers, then consider offering them a 5% gifted deposit as part of the sale. Most of the major lenders are happy with this, and it means the first time buyer doesn’t have to save as much deposit – which is certainly one of the big issues for them at the moment. Consider this, a £100,000 property being offered at £100,000 with a 5% gifted deposit is much more favourable that just reducing the price to £95,000 as they can effectively buy the house for half the initial outlay.
Call one of our advisors today for more information 01424 205 373
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