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Just released today, 50%LTV BTL mortgages from The Mortgage Works. Previously, TMW rates had started at 65%LTV, but they have introduced a new 50%LTV rate for both remortgages and purchases.
For purchases, there is a 5 year fixed rate at 2.19% that comes with a £1995 Arrangement fee. That's already an excellent rate, but it is paired with a free basic valuation and £250 cashback on completion to assist with your legals. For those of you who are averse to paying out on Arrangement fee's, there is a £0 arrangement fee option, priced at 2.49%, free valuation and £250 cashback on completion.
For Remortgages, the same 5 year fixed rates are available, but with free basic valuation and free basic legal package, in lieu of the £250 cashback.
If you would like to take advantage of these stunning rates, contact Property Tribes Financial Services on 01206 654444.
BTL's, residential mortgages, bridging, life cover and estate planning
For Commercial Finance, complex BTL and HMO funding, development finance, international and expat mortgages, and portfolio BTL mortgage services Assured Funding website.
Telephone: 07751042485 01206 654444
So essentially a major player in the BTL mortgage game is requiring no more than 50% LTV.
This is effectively telegraphing to LL that 50% will be the maximum LTV that will be advanced.
This is clearly in reaction to S24 and the PRA.
So as I have suggested since 2015 that 50% will be the maximum LTV required.
So LL will require a lot more 'skin in the game'.
This is perhaps be no bad thing as it will provide a fair buffer against IR increases and S24 taxes
Maybe even possible rent controls.
If that happens we could see max LTV reducing to 40 or 30%.
The days of 75% gearing will be shortly over.
That means that fewer LL will be able to enter the PRS or to be restricted to buying fewer properties.
That means more demand for scarcer rental property which means substantially increased rents whether affordable or not.
LL will always be able to source tenants who will pay the rent required in a PRS of reduced properties.
Which is great news for existing LL.
Means we can jack up our rents further to maximise the new resulting increased market rents.
The market will react to reduced rental property availability.
Tenants will find the resources to pay for increased rents or be evicted.
Most tenants will afford the new rents
They will just have to reduce spending in other areas of their lifestyle spending.
Those tenants that can't or choose not to afford increased rents will have to move to cheaper areas