2 Year fixed rate at 2.65% – available to 75% Loan to Value

If you’re looking for finance on your next buy-to-let and wish to fix your payments, here’s a new mortgage deal you may find of interest. This product is available for both remortgages and purchases.

The mortgage has the following features:

  • Available for the purchase and remortgage of rental property to 75% loan to value
  • 2.65% Fixed until 30/04/18 (4.7% APR) reverts to lenders variable rate currently 4.74%
  • 2% early repayment charge until 30/04/17 then 1% until 30/04/18
  • Free standard valuation to a value of £700
  • Free remortgage transfer service

£1,999 lender arrangement fee (can be added to the loan) & £295 broker fee for RLA members (normally £495)

Interested? Contact RLA Mortgages today:
E: info@rlamortgages.co.uk
W: www.rlamortgages.co.uk
T: 0844 858 4420

Our buy-to-let mortgage experts, 3mc, support you throughout all the steps of the process and can even help you to find mortgages for unusual property and tenancy types, including HMO properties and properties with Housing Benefit tenants. All for a fixed broker fee of £295 for RLA members.


Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for this specific product. For further information contact RLA Mortgages.

This is a financial promotion and in no way should it be viewed as a personal recommendation or advice. Before a recommendation/advice can be given you should seek independant mortgage or financial advice.

RLA Mortgages is operated exclusively for the RLA by 3mc, which is authorised and regulated by the Financial Conduct Authority. FCA No. 302992. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Although the FCA regulate the way the majority of mortgages are sold, in most cases they do not regulate buy to let mortgages. This means you may have less protection if things go wrong with a buy-to-let mortgage. All calls are recorded for training and monitoring purposes.

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Well, what year it has been for the buy-to-let market!

After a second year of strong growth in 2014 year (growing by around 30% on the previous year to £27.4bn), as we entered 2015 I couldn’t help thinking that buy-to-let lending had finally recovered from the beating it took during the financial crisis in 2008/09. This was also a time when we saw the vast majority of lenders exit the sector leaving only a handful such as BM Solutions, part of Lloyds Banking Group to hold the fort.

For many of us working in buy to let, 2015 has felt like a year of almost unprecedented change with potential challenges to come. And with all this we can sometimes lose sight of the really important things, such as the fact the market has continued to grow. While the final figures for lending in 2015 are yet to be confirmed, the indications from lenders are suggesting a figure of £34/35bn will be recorded and another year of substantial growth.

So what is all the fuss about? From my frequent conversations with mortgage lenders it’s clear there is much to fuss about as the majority invest considerable time, effort and money in building systems to help cope with the partial regulation of buy-to-let lending brought about by the Mortgage Credit Directive. The directive will see a new categorisation of landlord giving rise to the term Consumer buy to let as distinct from what we all know as Business buy to let. Consumer buy to let will capture most transactions where someone decides to let out their current residential property in order to purchase a new home to live in, commonly known as Let to Buy. The additional work, resource and funding has definitely meant that lenders have had less time to innovate this year.

During the summer months, the Financial Policy Committee (FPC) which sits in the Bank of England published its report into the Stability of the UK Financial System and drew particular attention to the growth in buy-to-let market highlighting concerns that this growth had the potential to destabilise the housing market. The report subsequently saw the Chancellor by-pass any form of consultation by granting the FPC powers of direction over buy to let lending with the industry now watching intently ahead of any potential moves to control buy to let lending activity.

In the July Budget, the Chancellor also announced plans to change the way in which tax relief on finance costs will be treated for landlords effective on a sliding scale between 2017 and 2020. While we all have some time to understand the true impacts, it will soon be upon us so some specialist tax advice would definitely be recommended for both new and existing landlords..

So, back to my original point, It’s clearly been an incredibly busy year for the buy-to-let sector but given that only around one third of property supporting the Private Rental Sector is financed by buy-to-let mortgages and only around 17% of total mortgage lending in the UK will be to buy to let, the sheer amount of attention the sector is facing is really quite baffling. We are in danger of losing sight of some pretty strong fundamentals if we are not careful. The Private Rental Sector is playing an incredibly important part in supporting the overall housing agenda by providing much needed housing for those people who either chose to rent because it suits or those who simply can’t afford or don’t qualify for a mortgage of their own. And let’s not forget, there is also an acute shortage of housing supply and people have to live somewhere.

Where does all this leave landlord sentiment? Well, according to a recent BM Solutions survey in conjunction with BDRC Continental, Landlord confidence has been hit hard by recent Governmental announcements affecting the PRS. Most notably, confidence levels in the PRS and landlord’s own lettings business have seen statistically significant declines when benchmarked against Q3 2014. Clearly landlords have a good understanding of the various changes though with Over 9 in 10 claiming awareness of the changes announced and the vast majority reported that they had at least some idea of the implications of the changes for their own lettings activity.

More optimistically for landlords though was perceived tenant demand remaining strong with 4 in 10 reporting that demand has increased in their areas of operation during Q3. Those with 11 or more properties to let are the most positive around tenant demand, whilst those currently in an unprofitable situation are more likely to report falling demand.

So in closing, it’s worth mentioning that 2015 has also seen a number of new lenders enter the buy-to-let market which is a clear sign that confidence in the sector has well and truly returned. My wish for the New Year has to be for all of the negativity surrounding the buy-to-let Market and Private Rental Sector subsides and the powers that be really do start to recognise that there is an important job to be done in filling the void left by a considerable shortage in housing supply and a tightening in the availability of residential mortgage finance.

For further information on Buy to Let mortgages both for individuals and limited companies please contact RLA Mortgages on 0844 858 4420 or visit the website www.rlamortgages.co.uk


Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for this specific product. For further information contact RLA Mortgages.

This is a financial promotion and in no way should it be viewed as a personal recommendation or advice. Before a recommendation/advice can be given you should seek independant mortgage or financial advice.

RLA Mortgages is operated exclusively for the RLA by 3mc, which is authorised and regulated by the Financial Conduct Authority. FCA No. 302992. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Although the FCA regulate the way the majority of mortgages are sold, in most cases they do not regulate buy to let mortgages. This means you may have less protection if things go wrong with a buy-to-let mortgage. All calls are recorded for training and monitoring purposes.

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Owning property within a limited company

The Chancellor’s announcement in the summer Budget that he intends to reduce the tax relief available to wealthier landlords to 20% from April 2020, has certainly set a number of hares running.

In response, some investors are considering purchasing, and even switching ownership of existing rental properties, via limited companies. But do limited companies provide the perfect solution for higher rate taxpayers and what issues do landlords need to take into consideration?

Owning property within a limited company is not a new idea and limited company status simply provides investors with a different tax ‘wrapper’. It’s not dissimilar in conceptual terms to an ISA being a tax-efficient ‘wrapper’ for savings.

Limited company status does not, of course, offer a tax-free haven but it does mean that from a tax perspective landlords will be able to continue treating mortgage interest payments as an expense, whilst paying corporation tax on his or her profits at a rate of 20% (or 18% from 2020). However, if profits are to be withdrawn from the business as dividends, then the amount of tax due on those dividends needs to be taken into consideration.

I don’t intend going into the in’s and out’s of tax planning in this article, as the subject is both complex and dependent on an individuals circumstances and aspirations. Suffice to say that investors don’t need to panic and make any knee-jerk decisions; they have plenty of time to consider their options and take professional advice before making any changes.

I would, however, like to highlight some important factors from a borrowing – and lending – perspective of using limited companies to acquire rental properties.

Investors can buy and hold property either as individuals or via a limited company. As individuals, property can be held in a sole name or can be held in the name of a spouse or civil partner. Some higher rate taxpayers will undoubtedly be considering transferring property into a spouses name and it’s certainly a valid option.

Another option, as mentioned above, is to hold property within a limited company, either an existing trading business or a Special Purpose Vehicle (SPV) set-up specifically to own investment property.

Many business owners have invested surplus company cash in rental property rather than holding cash in low yielding business savings accounts. There’s nothing wrong with using an existing trading company for this purpose, providing it doesn’t inadvertently change the nature of the business from being a trading to an investment company.

The other option is to set-up a SPV specifically for the purpose of owning rental properties. The benefit of an SPV is that it effectively ring-fences the asset and some lenders will only lend to SPVs.

However, some pundits would say that, from a lender’s perspective, lending to a trading company is less risky than lending to an individual, because the lender can make a charge over the business’s assets. However, in reality there is really little difference between the two, because lenders’ will ultimately focus on the directors and shareholders, rather the company itself. Invariably, lenders will seek personal guarantees and debentures in the form of a fixed and floating charge over the assets owned by the company and, in the event of needing to take possession, will focus on recovering the outstanding debt from the directors of the business.

The good news is that although there are only a handful of lenders that currently offer mortgages via limited companies and SPVs, there are an increasing number of lenders who are planning to launch into this sector and the choice will therefore widen in due course.

Over the coming months, some landlords will make the decision to move existing properties into a limited company structure. Technically, they will be transferring an asset from one legal entity to another and the transaction will therefore be classed as a purchase and they will need to consider issues such as stamp duty and capital gains tax.

What’s more, because the transaction is a purchase, lenders may ask for a deposit to be paid from the limited company’s cash reserves, which could be an issue for the owner. It would be far preferable, from the perspective of the deposit, if the transaction were treated in the same way as a remortgage, which would mean that the deposit does not have to deplete the business owners’ cash reserves.

RLA Mortgages/3mc is currently working with a number of lenders to help them develop their proposition for landlords wanting to transfer property into limited companies and we’re excited at the prospect of new lending solutions and greater competition in this important market over the coming months.

The Chancellor’s decision to change the tax relief available to landlords is inevitably going to cause a lot of head scratching and there’s no simple, one size fits all, solution. The right answer will depend on your personal circumstances.

For further information on Buy to Let mortgages both for individuals and limited companies please contact RLA Mortgages on 0844 858 4420 or visit the website www.rlamortgages.co.uk


Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for this specific product. For further information contact RLA Mortgages.

This is a financial promotion and in no way should it be viewed as a personal recommendation or advice. Before a recommendation/advice can be given you should seek independant mortgage or financial advice.

RLA Mortgages is operated exclusively for the RLA by 3mc, which is authorised and regulated by the Financial Conduct Authority. FCA No. 302992. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Although the FCA regulate the way the majority of mortgages are sold, in most cases they do not regulate buy to let mortgages. This means you may have less protection if things go wrong with a buy-to-let mortgage. All calls are recorded for training and monitoring purposes.

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Lifetime tracker BTL product launched for both purchase and remortgage – Rental coverage at pay rate!

If you’re looking for finance on your next buy-to-let property but are having challenges with lenders who have a minimum rental requirement then take a look at the below BTL product which is available through RLA Mortgages.
The mortgage has the following features:

  • Available for the purchase and remortgage of rental property
  • Lifetime Tracker (Libor + 2.81%) for term of mortgage, currently 3.4% (3.6% APR) up to 65% LTV
  • Minimum rental coverage required is based on 125% of the pay rate
  • 3% early repayment charge in year 1, 2% in years 2 to 3
  • 2% lender arrangement fee (can be added) & £295 broker fee for members (normally £495)

Interested? Contact RLA Mortgages today:
E: info@rlamortgages.co.uk
W: www.rlamortgages.co.uk
T: 0844 858 4420

Our buy-to-let mortgage experts, 3mc, support you throughout all the steps of the process and can even help you to find mortgages for unusual property and tenancy types, including HMO properties and properties with Housing Benefit tenants. All for a fixed broker fee of £295 for RLA members.


Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for this specific product. For further information contact RLA Mortgages.

This is a financial promotion and in no way should it be viewed as a personal recommendation or advice. Before a recommendation/advice can be given you should seek independant mortgage or financial advice.

RLA Mortgages is operated exclusively for the RLA by 3mc, which is authorised and regulated by the Financial Conduct Authority. FCA No. 302992. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Although the FCA regulate the way the majority of mortgages are sold, in most cases they do not regulate buy to let mortgages. This means you may have less protection if things go wrong with a buy-to-let mortgage. All calls are recorded for training and monitoring purposes.

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Variable rate mortgage – currently 2.69% Up to 65% LTV & No early repayment charges

If you’re looking for finance on your next buy-to-let with no early repayment charges from day 1, here’s a new mortgage deal you may find of interest.
The mortgage has the following features:

  • Available for the purchase and remortgage of rental property
  • Variable rate for term of mortgages, currently 2.69% (2.8% APR) up to 65% LTV
  • No early repayment charge from day 1
  • Free standard valuation to a value of £700
  • Free remortgage transfer service
  • £1,999 lender arrangement fee (can be added to the loan) & £295 broke fee for RLA members (normally £495)

Interested? Contact RLA Mortgages today:
E: info@rlamortgages.co.uk
W: www.rlamortgages.co.uk
T: 0844 858 4420

Our buy-to-let mortgage experts, 3mc, support you throughout all the steps of the process and can even help you to find mortgages for unusual property and tenancy types, including HMO properties and properties with Housing Benefit tenants. All for a fixed broker fee of £295 for RLA members.


Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for this specific product. For further information contact RLA Mortgages.

This is a financial promotion and in no way should it be viewed as a personal recommendation or advice. Before a recommendation/advice can be given you should seek independant mortgage or financial advice.

RLA Mortgages is operated exclusively for the RLA by 3mc, which is authorised and regulated by the Financial Conduct Authority. FCA No. 302992. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Although the FCA regulate the way the majority of mortgages are sold, in most cases they do not regulate buy to let mortgages. This means you may have less protection if things go wrong with a buy-to-let mortgage. All calls are recorded for training and monitoring purposes.

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Variable rate mortgage – currently 2.89% Up to 65% LTV & No early repayment charges

If you’re looking for finance on your next buy-to-let with no early repayment charges from day 1, here’s a new mortgage deal you may find of interest

The mortgage has the following features:

  • Available for the purchase and remortgage of rental property
  • Variable rate for term of mortgage, currently 2.89% (3% APR) up to 65% LTV
  • No early repayment charge from day 1
  • Free standard valuation to a value of £700
  • Free remortgage transfer service
  • £1,999 lender arrangement fee (can be added to loan) & £295 broker fee for members (normally £495)

Interested? Contact RLA Mortgages today:
E: info@rlamortgages.co.uk
W: www.rlamortgages.co.uk
T: 0844 858 4420

Our buy-to-let mortgage experts, 3mc, support you throughout all the steps of the process and can even help you to find mortgages for unusual property and tenancy types, including HMO properties and properties with Housing Benefit tenants. All for a fixed broker fee of £295 for RLA members.


Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for this specific product. For further information contact RLA Mortgages.

This is a financial promotion and in no way should it be viewed as a personal recommendation or advice. Before a recommendation/advice can be given you should seek independant mortgage or financial advice.

RLA Mortgages is operated exclusively for the RLA by 3mc, which is authorised and regulated by the Financial Conduct Authority. FCA No. 302992. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Although the FCA regulate the way the majority of mortgages are sold, in most cases they do not regulate buy to let mortgages. This means you may have less protection if things go wrong with a buy-to-let mortgage. All calls are recorded for training and monitoring purposes.

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Sourcing Your Buy-To-Let Mortgage

Doug Hall, Director at 3mc explains how you can source your Buy-To-Let Mortgage.


 

Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for this specific product. For further information contact RLA Mortgages.

This is a financial promotion and in no way should it be viewed as a personal recommendation or advice. Before a recommendation/advice can be given you should seek independant mortgage or financial advice.

RLA Mortgages is operated exclusively for the RLA by 3mc, which is authorised and regulated by the Financial Conduct Authority. FCA No. 302992. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Although the FCA regulate the way the majority of mortgages are sold, in most cases they do not regulate buy to let mortgages. This means you may have less protection if things go wrong with a buy-to-let mortgage. All calls are recorded for training and monitoring purposes.

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When is a HMO not a HMO?

Doug-Hall-600x400

Houses in multiple occupation (HMOs) have become increasingly popular as property investors look to maximise yields on their portfolios.

It’s easy to understand the attraction of HMOs to investors. Multiple tenants generate more rental income and there is less dependency and risk for the landlord if their income is derived from several sources. HMOs also make sense for tenants, because shared costs are usually cheaper. Go to any university town or city and you’ll inevitably find HMOs and if it also has a hospital or a high concentration of key workers, then HMOs become almost mandatory!

Technically a home becomes an HMO if it is occupied by 3 or more people forming 2 or more households, where more than one household shares amenities such as a toilet, bathroom and kitchen. In student land, large Victorian houses can make ideal HMOs and these types of properties are much sought-after by investors. If the house has 3 or more storeys and is occupied by 5 or more persons, then the property will require a licence from the local council.

Investors need to be aware of the potential requirement for both licencing and planning permission, when they decide to convert a property into an HMO. Planning and licencing are not connected, so investors need to ensure they cover both bases, especially if they are seeking mortgage funding.

From a planning perspective, the Town & Country Planning Act 1990 (TCPA) states that any change of use of a property requires planning permission, unless it is ‘non-material’ or permitted by General Permitted Development Orders (GPDO) which are based on the following classification:

  • C3 Dwellinghouse – a normal house or flat occupied by a single person, couple or family.
  • C4 House in multiple occupation – a normal house shared by between 3 and 6 unrelated individuals as their main residence. They will share facilities such as a lounge, kitchen and bathroom.
  • Sui Generis HMO – these are larger properties which cannot be classified as C3 or C4 and they will accommodate 7 or more unrelated individuals.

For HMOs it is permitted to change use from C3 to C4 (and back again) unless what is called an ‘Article IV’ direction is imposed by a local authority, which removes the permitted development rights. Change of use to a Sui Generis HMO does require planning permission. The planning rules can quickly become a minefield and you should take professional advice if in any doubt.

As I’ve already mentioned, licencing is a different issue and if a property is let to 5 or more tenants and has 3 or more stories with a shared kitchen, bathroom or toilet, then a mandatory licence will be required (unless the building has been converted into fully self-contained flats – in which case the property is not classified as an HMO!). Some local authorities will limit the number of HMOs in a particular area, so it’s worth checking before you commit to buy. Again, if in doubt, ensure you obtain professional advice.

There are then a raft of additional regulations covering everything from fire and gas safety to electrical checks and converting a property to an HMO needs to be undertaken with due regard to these rules. Managing the property may also be best undertaken by a specialist letting agent who is used to dealing with HMOs, you should expect higher maintenance costs than a standard buy-to-let property.

Most lenders will want to see that an investor has experience of managing HMOs and multiple tenants and that they have the financial means to cover rental voids. Lenders will ask for evidence of planning permission and licencing and investors need to understand how a lender will value a particular property. Some will value HMOs as a standard residential property and other will value on a commercial basis, using rental income to calculate a capital value. Expert intermediaries such as RLA Mortgages/3mc can advise on how different lenders will prefer to value HMOs.

And finally, experienced investors may buy property on a short-term loan and then, when it has been converted into an HMO, will re-leverage the property against the additional valued that has been created.

HMOs are growing in popularity with both investors and tenants and demand looks as if it’s set to remain strong for some time to come, especially for larger properties.


 

Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for this specific product. For further information contact RLA Mortgages.

This is a financial promotion and in no way should it be viewed as a personal recommendation or advice. Before a recommendation/advice can be given you should seek independant mortgage or financial advice.

RLA Mortgages is operated exclusively for the RLA by 3mc, which is authorised and regulated by the Financial Conduct Authority. FCA No. 302992. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Although the FCA regulate the way the majority of mortgages are sold, in most cases they do not regulate buy to let mortgages. This means you may have less protection if things go wrong with a buy-to-let mortgage. All calls are recorded for training and monitoring purposes.

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5 yr BTL fixed rate with limited lender set up fees – 3.65%

If you’re looking for finance on your next buy-to-let remortgage or buy-to-let purchase then this product with limited set up fees could be just the solution.

The mortgage has the following features:

  • Available for the purchase and remortgage of rental property
  • 3.65% Fixed rate until 31/10/2020 (4.7% APR) up to 65% LTV
  • Reverts to lenders variable rate, currently 4.74%
  • 5% early repayment charge until 31/10/2016, 3% until 31/10/2018 then 1% until 31/10/2020
  • Free standard valuation to a value of £700
  • Free remortgage transfer service
  • £1,999 lender arrangement fee (can be added to the loan) & £295 broker fee for RLA members (normally £495)

Our buy-to-let mortgage experts, 3mc, support you throughout all the steps of the process and can even help you to find mortgages for unusual property and tenancy types, including HMO properties and properties with Housing Benefit tenants. All for a fixed broker fee of £295 for RLA members.

Interested? Contact RLA Mortgages today:

E: info@rlamortgages.co.uk  Wwww.rlamortgages.co.uk  T: 0844 858 4420


Please note lenders have different minimum criteria requirements and not all landlords and property types will qualify for this specific product. For further information contact RLA Mortgages.

This is a financial promotion and in no way should it be viewed as a personal recommendation or advice. Before a recommendation/advice can be given you should seek independant mortgage or financial advice.

RLA Mortgages is operated exclusively for the RLA by 3mc, which is authorised and regulated by the Financial Conduct Authority. FCA No. 302992. ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Although the FCA regulate the way the majority of mortgages are sold, in most cases they do not regulate buy to let mortgages. This means you may have less protection if things go wrong with a buy-to-let mortgage. All calls are recorded for training and monitoring purposes.

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How much is my mortgage?

See how much you can save on repayments by trying our online mortgage calculator.

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