Mortgage News from Trevor Irons - 11/01/10

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Written by Trevor Irons Tuesday, 12 January 2010
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11 January 2010 

Dear Rod,  

Welcome to the first newsletter of 2010. This week the headline article provides some encouraging news regarding the buy-to-let market.
There are also the usual updates on lender and market activity. 
 
As always, please feel free to contact me with any questions.
Trevor Irons
Confidence Returns to the Buy-to-Let Sector 
81% of landlords surveyed by CHL Mortgages are positive about the future for buy-to-let with many suggesting the sector has now shed its former get-rich quick image and is once again a market of professional landlords.
This comes as part of CHL Mortgages' first quarterly survey of landlord customers. It has been taken to give a snapshot of landlord's views on the current state of the buy-to-let market alongside thoughts on the future of the sector, their intentions for their portfolios and how they are dealing with any potential difficulties.
When asked whether they planned to buy or sell some of their investment properties in the near future, 38% said they intended to buy, 13% said sell, while the majority, 53%, are content to sit tight with the properties they currently have.
A majority of respondents (59%) manage their properties themselves suggesting their role as buy-to-let landlord is a profession rather than a hobby, with 34% using the services of a lettings agent. 71% of landlords say the rental money they gain from their buy-to-let properties is sufficient to cover the mortgage payments, management and maintenance fees, while 15% say it is only enough to cover the mortgage. 6.1% said their rental income was insufficient to cover their outgoings.
55% said they had not experienced any rental voids in the last 12 months with 28% having to deal with a rental void in the last six months, and 17% in the last year. Finally, only 12% of respondents said they were using Rental Guarantee Insurance to protect against voids and rent arrears.
Call me for details of current buy-to-let schemes.
Source - BestAdviceNet - 7/1/10
Market News and Comment
Since the last newsletter swaps rates have increased noticeably:
  
1-year money is unchanged at 0.95%
2-year money is up 0.16% at 1.92%
3-year money is up 0.21% at 2.58%
5-year money is up 0.25% at 3.36% 
Lender activity is still subdued and there has been no immediate reaction to these increases. Our best-buys (see link to the right) remain largely unchanged.
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The Bank of England's Monetary Policy Committee has decided to keep base rate at 0.5% for the tenth month in a row, while continuing with its £200bn programme of quantitative easing. 
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3-month Libor remains at 0.61%
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The number of house purchase approvals rose in November to 60,518, figures from the Bank of England show. House purchase loans in November were at their highest level since March 2008, and up from 57,718 in October.
Source - Mortgage Strategy 4/1/10
Lender News 
Nationwide is reducing selected fixed and tracker rates by up to 0.60% for first time buyers and anyone moving home with smaller deposits. For example:
  • 2 year fixed at 5.54% up to 80% LTV with free legal fees and no reservation fee
  • 2 year tracker at 4.84% (BBR + 4.34%) up to 80% LTV with free legal fees and no reservation fee
    Source - Nationwide 7/1/10
Follow me on Twitter (see link to the right) to keep updated with lender product changes as they are announced. 
Please feel free to contact me to discuss any items in this newsletter, or to talk about other mortgage-related issues.
Sincerely,

Trevor Irons
01626 200305
07773 374003
Your home may be repossessed if you do not keep up repayments on your mortgage. There may be occasions where we may charge a fee, which may depend on your circumstances. In these situations we will inform you at an early stage, the fee being no more than 1.75% of the total loan amount.
Contact Me
Telephone:
 01626 200305
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In This Issue
Confidence Returns to the Buy-to-Let Sector
Market News and Comment
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