RBS Increases Minimum Deposits
March 31, 2008
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Royal Bank of Scotland and Natwest are to increase the minimum size of deposits that landlords must pay from 15 to 25 per cent of a property’s value from the end of today.
The banks, which previously lent up to 85 per cent of a buy-to-let property’s value, said the move was a defensive measure to try and protect the service whilst they are receiving record volumes of mortgage applications.
Popularity: 34%
CML Says Equity Release Mortgages Market is Not Performing
March 23, 2008
The CML reported that the equity release mortgages sector is not performing well.
Equity release allows home owners to release cash from their property. However the CML believes that the poorest people in the UK are not helped by equity release mortgage deals, due to a number of factors including the Government’s position regarding equity release.
Additionally, some of the larger mortgage lenders backed off equity release products to maintain their reputation since equity release received bad press in the past.
The UK equity release market was estimated to be worth £1.2 billion in 2007, remaining almost the same compared to figures from previous years.
Popularity: 34%
Bulgaria Reported Top Property Market
March 22, 2008
Bulgaria was reported as the best performing property market; in the spite of concerns over the level of oversupply of Bulgaria holiday properties, and the skepticism of many property investors. Bulgaria’s property prices rocketed 30.6 percent last year outperforming the rest of Europe.
On the whole, property prices growth is slowing down globally. An 8.2 per cent increase in 2007 compared to 9.6 per cent in 2006.
With the property market in the UK sliding so dramatically over the last few years to what it has become today, many developers, investors and indeed those looking for a first time buy are heading into Europe, where there are areas that are still seeing a rise in property values. Property in Bulgaria is increasing in value all of the time, meaning that it’s much better for investors to look at as a viable means. You can literally pick up properties in Bulgaria for just a few thousand pounds, and be sure that their value will increase. This is in stark contrast to property in the UK, where values are predicted to fall further at least until the end of the year.
If you’re looking for a property investment opportunity, you’re likely to find it in Bulgaria.
Popularity: 38%
Mortgages plc Withdrawn From The Prime Buy-to-Let Market
March 21, 2008
The wholly owned subsidiary of Merrill Lynch will continue to process prime buy to let applications until close of business on Wednesday 26th March, but will accept no new applications thereafter.
Polly Hughes, head of marketing at Mortgages plc, said:
We have seen both an increase in the number of new buy to let applications and a deterioration in credit quality, as other lenders have tightened criteria and pulled out of the market. Given the continuing difficulties in the capital markets, we have decided to pull out of the prime buy to let market for the time being and focus our resources on residential lending. However, we will continue to monitor developments carefully and, as and when the mortgage market starts to return to normal, we will review our position with regard to prime buy to let lending.
Popularity: 39%
NatWest Introduced New Buy to Let Mortgage Rates
March 20, 2008
As from today (20 March 2008), NatWest introduced new rates to two of its buy-to-let products.
NatWest buy to let mortgages:
- 5 year fixed rate (max LTV 85%) will increase to 5.99% from 5.50% with a £1,999 arrangement fee until 30 June 2013.
- 2 year discount (SVR +2.19%) (max LTV 85%) will increase to 5.75% from 5.44% with a £2,500 arrangement fee until 30 June 2010.
NatWest Mortgages Products Summary:
| Product name | Initial rate | Initial period | Arrangement fee | Max LTV | Min loan | APR |
| 2 year fixed rate online only |
5.44% |
30/4/10 |
£2,500 |
85% |
£15k |
8.2% |
| 2 year fixed rate online only |
5.64% |
30/4/10 |
£1,999 |
85% |
£15k |
8.1% |
| 2 year fixed rate |
6.44% |
30/4/10 |
£999 |
85% |
£15k |
8.2% |
| 2 year fixed rate |
6.74% |
30/4/10 |
£0 |
85% |
£15k |
8.0% |
| 2 year fixed rate remortgage |
6.74% |
30/4/10 |
£0 |
85% |
£15k |
8.0% |
| 5 year fixed rate |
5.99% |
30/6/13 |
£1,999 |
85% |
£15k |
7.7% |
| 2 year discount (SVR +2.19%) |
5.75% |
30/06/10 |
£2,500 |
85% |
£15k |
8.2% |
| 2 year tracker |
6.04% |
30/4/10 |
£999 |
85% |
£15k |
8.1% |
| 2 year tracker remortgage |
6.14% |
30/4/10 |
£999 |
85% |
£15k |
8.0% |
| Lifetime tracker (BoE rate +0.95%) |
6.20% |
N/A |
£999 |
85% |
£15k |
6.6% |
| Lifetime tracker (BoE rate +1.05%) |
6.30% |
N/A |
£999 |
85% |
£15k |
6.7% |
| Lifetime tracker remortgage (BoE rate +1.05%) |
6.30% |
N/A |
£999 |
85% |
£15k |
6.6% |
Popularity: 52%
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