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Buy-to-let investors to take advantage of fixed rates

Lee Grandin, managing director of Landlord Mortgages, the specialist buy-to-let broker says more investors will be moving onto fixed rate deals, following the interest rate rise to 5%.

He says: “The effect of this increase will of course be felt by those who invest in residential property. We have already seen how some lenders have withdrawn best buy products and future products in anticipation of this increase are unlikely to be as attractive as they have been over the last year.

“However, investors should not be put off and we expect many landlords to take advantage of current fixed rate deals to secure themselves against further increases. This rise has been expected and cautious investors will already have planned for it.

“When investing in residential property we continue to advise potential landlords to be prudent. All properties need to achieve a return which will cover at least 115% of the mortgage repayment in order to make it a viable financial option. As a result all aspects of the property need to be considered, both intrinsic and extrinsic to avoid financial headaches further down the line.”


Gold plating is a costly indulgence

The Council of Mortgage Lenders’ historically neutral attitude towards Home Information Packs, by which it has positioned itself as a “critical friend” of the initiative, has taken a backward step in recent weeks.

NAEA says rate rise could have detrimental effect

Following the Bank of England’s decision to raise interest rates from 4.75% to 5% today, the National Association of Estate Agents believes that it could be a rise too far for a significant number of areas in the UK where the housing market is under performing.Peter Bolton King, chief executive of the NAEA, says: The […]

Yorkshiremen are nothing like Ebenezer Scrooge

From Philip Holroyd I write regarding Isabelle Kassam’s article headlined ‘Ebenezer Scrooge is a Yorkshireman’ (Mortgage Strategy October 23). As a Yorkshireman I take exception to her comparison. It is a well known fact that Ebenezer Scrooge became a generous benefactor. A true Yorkshireman would never let himself go down such a slippery slope. Philip […]

Validus to launch French mortgages arm

Validus Invest has launched a financial services arm handling French mortgages, effective from November 13.Validus Financial Services will work closely with its sister company VEF French property, advising its clients and other overseas property buyers on financing their purchase using a French lender.The move was sparked by frequent requests from VEF clients for the provision […]


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