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GEMHL launches BTL range

GE Money Home Lending has launched a range of buy-to-let products.

The range, which will be available from June 15 includes initial rate rental calculation and 100% rental income up to 85% LTV.

Gerry Bell, head of mortgage marketing of GEMHL, says: “Following the successful launch of our first buy-to-Let range in November we are now beginning to add more products based upon key trends in the marketplace.

“We know that due to rising interest rates, fixed rate deals continue to fly off the shelves – particularly two year deals.

“We believe these additions to the range offer a compelling mix of price, term and flexibility for buy-to-let customers.

“We expect the range will be very popular, helping us to continue growing our presence in the buy-to-let market.”

GEMHL says buy-to-let has already seen significant growth so far in 2007 and research by GEMHL earlier this year suggests that this trend is set to continue, with 75% of UK mortgage brokers claiming that buy-to-let will be a key driver for growth for them throughout 2007.

Bell adds: “With affordability constraints on first-time buyers getting onto the ladder, 2007 looks like being the year of the landlord.

“It is therefore crucial that providers are developing products which serve the needs of buy-to-let customers.

“We have looked carefully at the market and feel that adding two new fixed rate products gives us great coverage across the range of borrower needs.”


DB launches fixed and tracker deals

DB Mortgages has launched a series of two-year trackers and two and three-year fixed rates. The two-year fixes start at 6.05% with an early repayment charge of 6% and the three-year fixes start at 5.95% with an ERC of 6% in the first three years.

Equity release kiosks are a bad idea

Last week I wrote about the need for the mortgage market to open its eyes to the potential of IT. But this must not be done at the expense of the quality of advice. The last thing the market needs is for borrowers to be disadvantaged by firms looking for short-term commercial gain.

BoS launches five B2L deals

Bank of Scotland has launched five buy-to-let products with rental income calculations based on 100% of the initial product pay rate. The range includes a two-year tracker at base rate plus 0.21% and a two-year fix at 5.99%, both with LTVs of 85%.

A bad week for the HIP industry

Borrowers got a reprieve last week with the Bank of England’s decision not raise interest rates in June. The Monetary Policy Committee froze the base rate at 5.5% – and a good job too for many people.

Strong dollar can be a powerful driver of UK dividend growth in 2015

By Robin Geffen, fund manager and CEO 

This year threatens to be a challenging one for UK dividend hunters. Last year saw an all-time record amount paid out in UK dividends — some £97.4bn, according to research from Capita Dividend Monitor. Yet as Capita also pointed out, out the biggest single factor driving the growth in the fourth quarter of last year was easy to identify: the rising US dollar. 

In our view, this trend is much more than simply a one-quarter phenomenon. It is actually the most profound issue to get right as a UK equity income investor in 2015. We believe that the US dollar will continue to strengthen significantly from its current level. This is due more to the US economy’s demonstrable de-coupling from the rest of the world than to a view on the UK. The US has a strong chance of tightening monetary conditions this year without jeopardising growth or de-stabilising its housing market. The same can unfortunately not be said about the UK.


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