Browse All Tribes or choose a Tribe below:
By signing up I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Sign Up With Facebook, Twitter, or Google
By signing up, I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Don't have an account? Sign Up
To reset your password just enter the email address you registered with and we'll send you a link to access a new password.
Newcastle is the biggest building society in the North East.
Newcastle Building Society's intermediary proposition is designed to our clients with a variety of mortgage needs. They want to help whether you require a 95% mortgage, buy-to-let, help-to-buy, fees assisted products, want to purchase a new build property or are self-employed.Buy-to-Let
AND - a North East exclusive proposition:
Available via the specialist mortgage Team on 01206 654 444 or contact us via the 'Mortgages' link in the above PT menu bar.
So NBS consider 3.5 % IR differential from the BoE rate is fair??
And this is for a fixed rate!
God knows what their SVR would be !?
This offer is typical of greedy lenders ripping off borrowers.
1.5 % margins worked for years before 2008.
"So NBS consider 3.5 % IR differential from the BoE rate is fair??"
Paul, that is not their charge rate, it is the BTL stress rate calculation, ie 145% x 4%
Their 5 year fixed rates actually start at 3.35% which is very competitive, especially when you take in to consideration the other product features which are also important to many investors such as no maximum age, that they include nil valuation fees and nil lenders arrangement fees on some of these products too.
There is always a bigger picture :-)
I have to disagree with another point too I'm afraid. "1.5 % margins worked for years before 2008." .... yes, for the borrower (!) - but the lenders proved that such differentials didn't work for them or the economy and hence many banks collapsed, were sold, merged or simply stopped lending any more and have focused on winding down their books. Again, a bigger picture and one that I have also personally lived through as both a BTL investor and a Broker.
Interest differentials had worked fine
If only the idiot banks hadn't bought dud investments with trailer trash mortgages wrapped up in mortgaged backed securities there would have been no issue.
Banks have been given loads of cheap money by Govt
They have not passed it on like they were supposed to.
Much of BTL is unviable with SVR.
Certainly at the standard 25% LTV.
With banks being greedy they will find far fewer borrowers willing to borrow.
Banks need to return to no more than 2% IR differential if they hope to maintain business. .
Things currently don't look very good at all for BTL lenders.
The rates they are charging like NBS are simply greedy and profiteering.
There is simply no way BTL is viable on SVR.
Which is why lenders continually come out with stupid teaser rates with their profiteering SVR.
Much of BTL is unviable at current SVR.
IR increasing will make things even worse.
BTL is teetering on the edge which increased BoE rates will tip borrowers over the edge.
Lenders should be requiring far higher deposits but they know this isn't possible if they hope to lend.
Lenders are between a rock and a hard place.
If I had any shares in banks and other mortgage lenders I would be selling them all!!
Hi Thanks for the information. I was under the impression that Newcastle BS restricted BLT lending to landlord/investors with no more than 4 properties.
is this the case ?
Also do they do BTL loans to Limited Companies ?
Yes, you can have no more than 3 mortgaged BTL properties in your portfolio (including any that you want to mortgage with them too) however any tenanted and unencumbered properties don't count towards the 3.
and .. no, sorry. "NBS will only lend to individuals or joint borrowers who are UK residents where loans will be held in individual names. Applications from limited companies, Trusts and SPV's will not be accepted."
Hope that helps.