Landlords should not ignore this

The vast majority, some 81% of Landlords think that their mortgage providers quietly hope they will slip onto their Standard Variable Rate (SVR) at the end of their fixed rate period.

And a significant percentage do precisely that a new poll has found, finding that over 40% have been on their mortgage lender’s SVR at some point in the past.

Of these people, 17% said they have been on their lender’s SVR for up to 12 months, and 21% said they have been on their lender’s SVR for 12 months or more.

Less than half, 45%, of respondents could confirm they had never been on their lender’s SVR, while 18% had no idea whether they had or not.

Nearly half of those polled, 47%, said they do not believe their current mortgage provider would care if they moved to another lender, which reflects the dysfunctional relationship between borrowers and lenders.

Landlords still have a great choice of mortgages

Landlord mortgage availability has been hugely affected by the Coronavirus crisis, just like the rest of the mortgage market.

But, after an initial wave of large numbers of deals being pulled from the market, lenders are regrouping and relaunching buy-to-let products.

Very few lenders have stopped lending to landlords altogether.

Research from specialist buy-to-let mortgage adviser, Mortgage for Business, shows the vast majority of buy-to-let lenders – 85% – are still offering mortgages to landlord’s.

Rents in England at an all-time high

The average monthly rent in England measured over the 12 months to September was £725, according to the Office for National Statistics. This is the highest level ever recorded.

London unsurprisingly had the highest median monthly rent at £1,435, almost double the England average.

And this was hugely different to the North East which recorded the lowest median monthly rent, at £495.

Rental prices and the spread of rents tended to be higher in the southern regions of England than in the Midlands and northern regions.

With average rents in England hitting a record high over the past year, it’s no surprise more and more tenants are desperate to get onto the property ladder. Psychologically, it can be deflating knowing that you’re paying so much for so little, especially in the capital where rents are borderline obscene.

With interest rates so low, getting a mortgage can be considerably cheaper than paying rent but finding a deposit remains a key obstacle to homeownership.

Desktop Valuations Launched

The Mortgage Lender has launched desktop valuations for buy-to-let (BTL) purchase and re-mortgage products up to 75% loan-to-value ratio (LTV).

From Monday 27th April, desktop valuations will be available for existing BTL pipeline cases where possible, and for the majority of new individual, expat and limited company applications.

For properties that are not suitable, including houses of multiple occupation and multi-unit blocks, applications can still be submitted by brokers and cases will be progressed once a physical valuation is possible.

The move follows the launch of a revised buy-to-let range, with 2-year fixed rates starting from 3.13% for individual and limited company applications at 70% LTV, and 5-year fixed rates starting from 3.49%.