View more on these topics

Buy-to-let increases by 50%

Research from Mortgages Direct, the financial subsidiary of haart estate agents, reveals that buy-to-let investors are returning to the market with a 50% increase, making up 12% compared with last months 8% seeking buy to let mortgages from Mortgages Direct.

The index also reveals that first time buyers continue to show reluctance to enter the market as the number seeking mortgages has decreased by 6% in September, making up 38% of Mortgages Directs loans in September.

Peter Gladdy, director of Mortgages Direct, says: The renting market is fairly buoyant in this current climate, with many potential homeowners sitting on their hands, waiting to see which way the prices will go and therefore opting to rent instead.

Landlords are responding proactively to the demand and to the upward trend of rents. The established investor, who takes a long term, professional approach to buy-to-let, continues to buy selectively and carefully.

Also the imminent change to SIPPs, where residential property will soon become a valid SIPP investment is already boosting the number of buy to let mortgages, as investors are realising the opportunity to boost their pension funds.

Despite the recent drop in interest rate levels to 4.5% consumers are clearly showing little confidence that they will remain low. An increasing number of borrowers are now becoming a lot more cautious and are opting for fixed rate deals. Tracker mortgages have decreased from 10% to 4% since last month.

Despite the recent decrease in interest rates the number of borrowers opting for interest only repayments has increased to 31% from 19% last month.

Gladdy adds:It is surprising that more borrowers are opting for interest only repayments. This is not advisable and borrowers need to ensure that a comprehensive repayment method is in place. Borrowers are evidently still feeling the squeeze on their finances.


Is there any need to levy higher lending charges?

Halifax and Abbey have hit back at Nationwide after it accused them of levying unnecessary lending charges. Stuart Bernau, executive director at Nationwide, says both lenders run the risk of being accused of blatant profiteering by levying a higher lending charge and higher interest rates for those needing to borrow more than 90% of the […]

Halifax underwriters should put more starch in their shirts

From Chris Stanfield I have to agree with previous comments on these pages regarding Halifax’s poor service and its amazing invisible lending criteria. In some cases its performance and treatment of applicants and intermediaries is appalling. I submitted an excellent case for a 90% purchase on July 19. I supplied every document stated in the […]

BM Solutions announces Sandy Lane winner

BM Solutions has announced David Wood of Castle Mortgages, in Milton Keynes is the winner of the luxury break to Sandy Lane, Barbados. David was picked at random from all brokers who have submitted cases on the one minute mortgage application system since January.Martin Reynolds, head of sales at BM Solutions took David out to […]

Intermediaries struggle to obtain KFIs

Obtaining Key Facts Illustrations from lenders is the biggest problem intermediaries face since regulation, say those taking part in the Association of Mortgage Intermediaries September mortgage intermediary census. Firms responding to the census also highlighted the cost of compliance as a direct threat to business.Previous census results have shown that the majority of intermediaries welcomed […]

Health - thumbnail

Absence management systems gone AWOL from UK’s SMEs, reports Jelf

A quarter (23 per cent)* of the UK’s small to medium-sized enterprises (SMEs) do not have an absence management system in place, according to new research from Jelf Employee Benefits. Despite 69 per cent* of organisations having a system in place, three-quarters (75 per cent) report that it is not providing them with sufficiently empowering absence or health data to inform an effective wellbeing programme.


News and expert analysis straight to your inbox

Sign up