Call me back
call-to-action

Guest Blog: Are you a buy-to-let mortgage prisoner?

Fri 24 Mar 2017

Many landlords are saddled with lenders on less than competitive interest rates, or stuck on higher standard variable rates making them virtual mortgage prisoners, according to The Mortgage Broker Ltd, a nationwide broker providing mortgages to buy-to-let landlords and investors.

Landlords may feel imprisoned by the new ‘affordability’ testing, which is being undertaken by lenders.  As a result, some landlords are suffering expensive mortgage rates, which are eating into their profits each month, or even forcing them into a loss.  The new lending rules means some lenders will have to take into account a landlord's other expenses such as their tax status.  It will be on this stricter lending that landlords will be assessed to see if they can afford to borrow.

According to Darren Pescod, Managing Director of The Mortgage Broker Ltd, often landlords do not fit this new lending criteria. He comments: “Britain's two million landlords are facing assaults from both the taxman and the Bank of England. The mortgage restrictions are very bad for landlords and pose a major threat to BTL investments.  If landlord mortgages are tougher to secure, buy-to-let landlords could find themselves stuck on expensive rates indefinitely.

“Thankfully, the Ipswich Building Society has returned to the mortgage market with two new buy–to-let products, specifically aimed at buy-to-let prisoners or ‘misfits’. The good news is that the lender will only assess rental income at 125% of the mortgage pay rate. Ipswich Building Society has also confirmed it will accept remortgage applications from selected intermediaries and its prestige partners, of which The Mortgage Broker Ltd is one. 

“This new move will increase the options available to landlords looking to remortgage, where they may be restricted by the FCA rules for calculating mortgages for buy-to-let landlords.” 

Richard Norrington, Chief Executive, Ipswich Building Society commented: “We continue to provide choice in the marketplace for mortgage misfits and those who may not fit a ‘one size fits all’ assessment. By employing a manual approach to underwriting, with consideration of each application based on individual circumstances, this new initiative will help creditworthy buy-to-let borrowers who may be finding it hard to remortgage away from their existing lender.”

The Mortgage Broker Ltd provides clients with a highly professional mortgage service from trusted and fully regulated Mortgage Advisers. Offering no obligation advice, from fully trained mortgage experts who scour the whole of market panel of lenders, The Mortgage Broker Ltd ensures clients get the most suitable deal to suit their personal circumstances. The Mortgage Broker Ltd has won several industry Awards including the What Mortgage Award and the British Mortgage Awards.

 

For further information, please contact Darren Pescod on darren@tmblgroup.co.uk, or visit www.themortgagebroker.co.uk.

"Many thanks to Emma for all her hard work throughout the letting process of my property. Excellent service - as always! Lovetts are the best"
Julia - St Neots

News Archive

October 2017

'It was like a pig sty'

Are Landlords unprepared for the ban?

They came and ate cake!

Landlord open evening, October 2017: Open to all

September 2017

Interest rates remain the same – but a future increase is coming

Average rents surge to a new high for 2017

I’m not Willy Wonka and Lovett’s isn’t a chocolate factory

Guest blog: How to identify smoke damage in your rental property

One thing you shouldn’t do when the price isn’t right

August 2017

The Great Outdoors has a big impact on a property’s value

Beat the Back to School Rush

What's happening with House Prices in St Neots?

Life onboard a dragonboat

Resolving Deposit Disputes With Tenants

July 2017

Guest Blog: Can Mortgage Holders Withstand Rises in Interest Rates?

Ask The Expert: 'I am currently in a fixed rate mortgage, is it worth swapping mortgage deals as the rates are much lower?"

We're proud to be sponsoring the St Neots Community Awards 2017

Landlords and tenants in the St Neots area: How will the upcoming ban on tenant fees affect you?

The rise of retired renters

June 2017

Queen confirms tenant fees ban

UK rents fall for the first time in 8 years

Property Market Update, June - In Numbers

Guest Blog: Buy-to-let market hit by new reforms

The Election and the Private Rented Sector: In brief

May 2017

Looking after your money

Guest Blog: Bank of Mum and Dad Gets into the Top Ten UK Mortgage Lenders

Corporate golf day raises thousands for local charity

April 2017

Property Market Update – April 2017

Record Low Rate Launched on New Mortgage Product

Lovett's Support Dragon Boat Juniors

UK Lettings market starts to cool - but Cambridgeshire remains strong!

In Brief: 60 Seconds With.......Katie Williams, St Neots Town Centre Manager

Lovett partners with St Neots' first dedicated FM radio station

Top 5: Local Easter Egg Hunts This Weekend!

March 2017

Letting agents celebrate new protection for landlords and tenants

Guest Blog: Are you a buy-to-let mortgage prisoner?

When is the best time to sell your property?

Imminent changes to tax relief for residential landlords: In Brief

Landlords: Prepare early for EPC regulations changes

February 2017

Buy To Let Mortgages Hit Record Low

Home Repossessions Down in 2016 – But Will the Downward Trend Continue?

House Prices Surge In East of England

Government Announces New Housing White Paper

January 2017

Online Vs Traditional – The Battle Continues

2017: Property market predictions and trends

We smash our 2016 MacMillan Business Champions fundraising target

Keeping it in the family: Lovett MD passes on baton to his son

December 2016

Our Christmas Opening Hours and Emergency Contact

Rents rocket across East Anglia as it closes gap on London

The Sales Property Market in PE19, 2015-16

Forecasting the Property Market: The Next 5 Years...

Autumn Statement - Chancellor Focuses On Housing

November 2016

Proposed Ban Of Tenant Letting Fees

October 2016

Lettings Market Update - November 2016

Sales Market Update - November 2016

Looking For An Investment Property?

Lovett's In The Community

Property Market Update – October 2016

Lovett Ringing The Changes!

Coffee Morning Is A Piece Of Cake!

September 2016

Download our free guide to selling your home in Cambs

Back to School - How Catchment Areas Shape Our Buying and Selling Habits

Property Sales Market Update – September 2016

New Government Landlord Tax Changes: In Summary

August 2016

Lovett At The Dragonboat Festival

August Property Market Update - Nationally and Locally

First Time Buyers Paying A Higher Price?

Our Charity Cycle Ride Raises Thousands For Local Charity

June 2016

**COMPETITION TIME**

July Property Market Update – Post Brexit

David’s Top 5 Tips……Preparing Your Home For Viewings!

Lovett's at Lettings Agent of the Year Awards

May 2016

May Property Market Update

Fancy New-Build Waterside Living From Just £159,995?

Our Rent Pledge Proving a Firm Favourite

Lovett’s Use Pedal Power for Woodlands Fundraiser

BREXIT: What now for the property market?

March 2016

Let Them Eat Cake!

February 2016

Right to Rent Legislation - We've Got It Covered

January 2016

West Cambs Set For Further Capital Growth

December 2015

Chancellor Announces Stamp Duty Hike for Property Investors

November 2015

Buy-to-Let Landlords Evening

October 2015

Bank of England To Curb Buy-To-Let Lending?

Recognition for 30+ Years As Local Property Experts

Dragonboat Success for Lovett Crew!

August 2015

Our Top 5 Local Spots for Summertime Drinks!

Advice For Concerned Kirby Landlords/Tenants

July 2015

Local Lettings Market Goes From Strength to Strength

June 2015

We Partner with Auction House

Professional Lettings Agents unite for SAFEagent Awareness Week 2015

May 2015

OnTheMarket.com announces 10million visits in 3 months

April 2015

The Sales Process

St Neots RUFC Festival of Rugby, 24th - 26th April

NEWS: Stamp Duty Overview

BLOG POST: The First 40 Years Are The Hardest.......

Welcome To Our Brand New Website!