View more on these topics

John Charcol unveils market-leading BTL deals

John Charcol launches two exclusive, ground-breaking deals for the buy-to-let market, one of which comes with no arrangement fee during September, and also gives a full refund on valuation fees.

All lending is in sterling, protecting homeowners from any currency risk, and both deals are available for purchase or remortgage.

The exclusive John Charcol product, funded by Scarborough is virtually fee-free with a refund in valuation fees, or 350 cashback on a remortgage.

With the limited offer of no arrangement fee, buy to let investors could not only benefit from a low initial rate of 3.49%, but can also take advantage of these mouth-watering freebies.

The second product, with West Bromwich, allows up to 10% overpayment every year, with no early repayment charges.

Equally importantly, the rental cover calculation on both deals is based on the initial Libor-linked pay-rate, meaning most buy-to-let properties will have enough rental income to qualify for the maximum 80% LTV mortgage (85% on the West Bromwich deal), as the property will only need a gross rental yield of 4.68% to take advantage of this rate.

Ray Boulger, senior technical manager at John Charcol, says: Buy to let now represents a significant part of the overall market, and we are pleased to have developed some highly sophisticated deals with these lenders that, just five years ago, would have been unheard of for your average buy-to-let investor.

Despite steady increases in US$ 3-month Libor, it is still well over half percent below its UK equivalent, although this differential is likely to narrow in the short term.

“Providing the average UK 3 month Libor rate exceeds the average US equivalent by at least half a percent for the three years of the Scarborough deal, the average rate on this mortgage will provide excellent value compared with conventional trackers.

Most buy-to-let mortgages calculate the rental cover required on either the initial pay-rate or a higher notional rate.

If the lender uses a notional rate well in excess of the pay-rate it is very difficult to obtain a high loan-to-value mortgage, because the rental yield will often not be sufficient to meet the lenders criteria.

Boulger adds: The lower monthly payments required on these mortgages, compared to any other buy-to-let mortgage currently available, will provide a boost for many existing landlords.

“It also gives new investors, and those planning to expand their portfolio, a great value mortgage for their new property, plus the likelihood of meeting the rental cover requirements needed to borrow the maximum loan-to-value.


Recommended

em roadshow heads north

In addition to September 27 Bristol, and October 4 Reading roundtable events, em- has announced additional dates for further stops on their nationwide roadshow.Newcastle upon Tyne and Leeds will see the em- roadshow come to town at the end of October. The Gateshead/Newcastle Hilton Hotel will host the event on October 25 and The SAS […]

Government claims success

The government claims its Key Worker Living scheme has borne fruit and is helping in the recruitment and retention of teachers, nurses and police. This is one of the findings of the Key Worker Living Evaluation: Early Findings study published by the Office of the Deputy Prime Minister last week. The government also says its […]

Riddick leads first annual conference as PISCES chairman

Mark Riddick, the newly appointed chairman of the Property Information Systems Common Exchange Standard and CEO of SearchFlow, is leading the organisations first annual conference on September 7 and 8 in Stratford-upon-Avon, as chair and facilitator. Riddick was unanimously appointed as PISCES chairman by board members on August 5 2005.The conference is aimed at providing […]

More than 130 firms mend their ways

The Financial Services Authority says more than 130 firms have taken corrective action in the way they operate to address serious failings over the past year. Some 63 firms addressed serious failings and breaches of the threshold conditions when challenged by FSA supervisors. And 69 firms referred to the Threshold Conditions Team took corrective action […]

Guide

Guide: reporting to the Pensions Regulator — what and when?

Johnson Fleming has published a step-by-step guide demonstrating the importance of record keeping and reporting, and how it can ensure you operate a successful scheme. The guide takes you through some key questions you need to ask and identifies the information you need to obtain. The topics include: why you need to keep records and the benefits of doing this; registering your scheme; what information you need to record to ensure you meet the Pensions Regulator’s requirements; and what items need to be recorded and when.

Newsletter

News and expert analysis straight to your inbox

Sign up