National PropertyPortfolio Posted November 14, 2011 Report Share Posted November 14, 2011 We have seen a very interesting statistic emerge from the Complex BuyTo Let Index from Mortgages For Business and that is that the amount of buy to letmortgage products has gone up by roughly 50% on last years figures which isquite a phenomenal jump. Breaking the figures down we can see that in 2010 there were around 142products that were obtainable for investors in the buy to let property market.Now we are nearing the end of 2011 the figures here are extremely different tolast years and the products now available to investors for buy to let productshas gone up to 298. Why The Rise? When we see large shifts in figures like this we need to look as to whythis has happened and in this particular case we have seen the rise due toseveral reasons and one main reason is the return of 4 mortgage lenders to themortgage market. Furthermore in response to the high demand from the buy to let investormarket, we have seen a reduction from lenders in the strictness of the mortgagelending criteria and it is this lending criteria that has made it verydifficult for people to actually acquire a mortgage in the past. This has thenled to lenders being able to bring out more diverse products to meet the highdemand that currently exists. Mr. Whittaker is the Managing Director of Mortgages for Business and hefeels that as the owner and occupier market has become quite stagnant and hasslowed down tremendously, the private rental property market has improvedsuperbly. The high demand from people wanting to rent properties has meant thatlandlords and investors are actually growing their portfolios to accommodatethis new demand for the rental market. Also he suggested that the demand frominvestors and landlords looking to grow their portfolios has been met by thelenders with them expanding their mortgage product range. It should be noted that the most successful investors are those thatunderstand that the most profitable returns are those that come from the morecomplex mortgage products and deals. For example multi unit freehold deals havea return of around 10% to 11% for investors who utilise this product and thiscan be a significant return for any landlord especially when evaluated next toa savings and investment fund return. www.nationalpropertyportfolio.co.uk Link to comment Share on other sites More sharing options...
Richlist Posted November 14, 2011 Report Share Posted November 14, 2011 Oh please.....I really do object to being taken for a fool. Its hardly an occasion to celebrate ....... Lets look at some of the crapy BTL products currently on offer :- * 60% LTV @ 2.84% with a WHOPPING 2.5% arrangement fee * 70% LTV @3.69% with an EYEWATERING £2495 arrangement fee * 75% LTV @ 4.99% with a £1999 arrangement fee All this whilst base rates are 0.5%......and the first two offerings are only fixed for 2 years and then the rates jump UP. I'd rather burn my money......if you run a Porsche then you know that you probably already are ! Link to comment Share on other sites More sharing options...
National PropertyPortfolio Posted November 14, 2011 Author Report Share Posted November 14, 2011 Hmm yes, thank you for the feedback "Richlist" albeit as blunt as it is. There seems to be some confusion though, this article relates more to products more than it does rates. Just trying to share! Link to comment Share on other sites More sharing options...
Richlist Posted November 14, 2011 Report Share Posted November 14, 2011 Hmm yes, thank you for the feedback "Richlist" albeit as blunt as it is. There seems to be some confusion though, this article relates more to products more than it does rates. Just trying to share! Oh, there is NO confusion on my part.....I can see right through it and yes, my reply is blunt and so it should be ! Your post suggests that in spite of my comments you've still failed to grasp the issue. It matters not how many products are available. Wether there are 100 or 100,000 would make little difference if the interest rates are high, the arrangement fees are astronomic and the terms/ conditions are crap. I'm happy to debate the subject should you feel that you have anything worthwhile to add. Link to comment Share on other sites More sharing options...
National PropertyPortfolio Posted November 15, 2011 Author Report Share Posted November 15, 2011 "Richlist"You seem to be unnecessarily critical across this forum, as a company we blogand contribute on a number of other forums and have never received feedbacksuch as yours. The whole purpose I feel is to share with people who perhapsdon’t know about the points you are trying to get across. You have indeedmissed the point as the industry that we are in sometimes means that investorsfit criteria with only certain lenders, and regardless of the rates, if you are getting a great deal then an extra 1% might not have such a detrimental effect,therefore the more lenders offering more products does in fact benefit theindustry. I would be interested to know what services you provide other thanyour opinions on here. Link to comment Share on other sites More sharing options...
anita.z Posted November 16, 2011 Report Share Posted November 16, 2011 I have to say I agree with Richlist. Just because there are loads more BTL products on the market, it does not mean that any of them offer good value. The rates are competitive enough but it's the eye watering arrangement fees that I object to, daylight robbery springs to mind. We have just 1 BTL flat, bought last year and in principal would like to invest on another but will stay put for now - I find none of the current deals tempting enough. Link to comment Share on other sites More sharing options...
Grampa Posted November 16, 2011 Report Share Posted November 16, 2011 "Richlist"You seem to be unnecessarily critical across this forum, Ah yes, but he is equally critical to everyone Link to comment Share on other sites More sharing options...
Melboy Posted November 16, 2011 Report Share Posted November 16, 2011 Ah yes, but he is equally critical to everyone Seconded......... Link to comment Share on other sites More sharing options...
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