News Review - August 14th 2009 |
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Here are this week's news and views from the world of buy to let property. Articles this week:
Latest NewsImportant News regarding Birmingham MidshiresI have heard through the grapevine that within the next few weeks Birmingham Midshires are set to cease offering the ability to obtain a further advance on mortgages within the first six months of ownership. The further advance enables the buyer to purchase a property with say a market valuation of £100,000 at a discount and extend their borrowing to 75% Loan to Value as soon as the first mortgage payment has been made. This method of extending the borrowing has been a great alternative to waiting 6 months before re-mortgaging a property. This system has been incredibly popular on refurbishment projects and increasingly so on below market value purchases where it enables the buyer to recycle their deposit and get their initial investment back out of the property after just a few weeks. If you are looking to finance a property purchase in this way, then we would recommend that you get on the phone to your broker right away. UK housing market, the untold story.John Charcol mortgage expert Ray Boulger has written up his thoughts on the Treasury Select Committee’s brief on the housing market, Mortgage Arrears and Access to Mortgage Finance. He makes some very lucid, if disconcerting observations. Libor rates approach 'normality'. This is great news for borrowers as it should enable banks to lend at more competitive rates - whether they will fulfill their end of the bargain by lending at cheaper rates remains to be seen though. (Not sure what the Libor rate is?) With fewer landlord reposessions and receivers of rent appointed versus the last three months,the buy-to-let market is 'showing some signs of stabilisingHowever, remortgaging is still as difficult as ever with just 7,790 remortgages recorded this quarter. Shelter forecasts a second wave of arrears and repossessions. "The economy remains weak and with unemployment still growing, arrears and possessions are likely to rise in the second half of the year".... Buy-to-let loan advances down 70%from last year in the second quarter of 2009 according to figures from the Council of Mortgage Lenders (CML). Market report on property prices.The Times has taken the views of a cross section of housing market experts to give their latest opinion on where the market's going and when. The FT seems to have made up its mind though - and I'd tend to agree with their main points. Sarah Beeny: "Estate agents will be extinct in ten years" A nice thought! Maximum fine for buy to let landlord after tenant dies in bathroom tragedy.Very sad cuationary tale for landlords... |