Precise Mortgages, the specialist lender, is launching into the holiday buy-to-let market and enhancing criteria for its multi-unit range in response to growing demand from brokers supporting professional landlords.
Syndicated research* carried out for the specialist lender by BDRC shows nearly one in 10 (9%) landlords with more than 20 properties owns holiday lets in the UK with a further 9% owning holiday lets abroad. For all landlords interviewed as part of the survey, holiday lets were the second most popular property type to own in addition to residential portfolios.
The specialist lender will consider UK applications on houses and flats currently utilised as holiday lets providing there are no planning or occupancy restrictions.
Experienced individual and limited company landlords wanting to invest in a holiday let can choose from Precise Mortgages’ core buy to let range with rates starting from 2.77% and borrow up to £500,000 to a maximum 70% LTV or opt for a bridging finance loan.
The holiday let option is part of a raft of buy to let and bridging criteria enhancements to help landlords wanting to take advantage of evolving market opportunities.
The criteria changes are being launched to help more customers secure the product they need – its syndicated research* found 12% of all landlords own multi-unit properties rising to one in three (34%) among those with 20-plus properties.
Experienced individual and limited company landlords investing in multi-unit opportunities can now have up to six self-contained units under a single freehold and borrow up to £750,000 at 75% LTV and up to £1m at 70% LTV.
Alan Cleary, Managing Director of Precise Mortgages, said: “The UK is proving increasingly popular among both British and overseas tourists which is generating attractive rental returns for holiday lets. The new criteria across the buy to let mortgage and bridging finance ranges will help more customers secure the product they need.”
Full details of the buy to let mortgage and bridging finance criteria enhancements can be viewed by visiting the online criteria glossary on the Precise Mortgages’ website at www.precisemortgages.co.uk/Criteria/Glossary.
*BDRC Q2 2018 Landlords Panel syndicated research report prepared for Precise Mortgages. Fieldwork was conducted online between 8th and 25th June among a sample of 681 National Landlords Association members
The specialist lender Precise Mortgages has launched a new 5- year Fixed Rate Buy to Let range with reduced rates and product fees to support brokers and customers.
The new limited-edition products are available at 3.49% with a 1.5% product fee and 3.59% with a 1% product fee on LTVs of up to 75%.
They are available to landlords applying as individuals or through limited companies and on portfolios comprising houses in multiple occupation (HMO) demonstrating Precise Mortgages’ focus on responding to market changes.
Precise Mortgages believes the 5-year fixed rates are ideal for low yield and high value properties above £300,000 helping landlords get the loan size they want with the assessment rate based on the pay rate.
Syndicated research* for the specialist lender shows the highest yields across all types of property are currently available on HMO at 7.1% but that yields vary across the country with landlords in the North West achieving an average 6.7% compared with 4.8% in Central London where property values tend to be higher.
Alan Cleary, Managing Director of Precise Mortgages, said: “There is increasing demand for products targeted to address particular issues faced by brokers and landlords which is a major part of our role as a specialist lender as the new range demonstrates.”
Precise Mortgages offers an extensive range of Buy to Let products and full details are available at www.precisemortgages.co.uk.
New research* for the specialist lender Precise Mortgages reveals shows nearly two out of five (38%) landlords will use limited companies to buy properties over the next year compared to 28% as individuals, highlighting the continuing rise of the professional landlord.
Among landlords with more than four properties the percentage buying new property via a limited company rises to 42% while among those with up to three properties it drops to 31%. Landlords operating in London are the most likely to be planning to purchase through a limited company.
The findings underline the continued growth in popularity of limited companies among landlords. According to recent research** by Precise Mortgages, 89% of brokers expect the number of landlords setting themselves up as a limited company to increase with the ability to continue to claim tax relief on mortgage interest seen as the main motivation.
Around 15% of landlords questioned intend to add to their portfolios over the coming year buying an average of two new properties, the BDRC study found. Around 23% of those planning to buy will add three or more properties to their portfolio.
The specialist lender has a dedicated portfolio team and proposition to ensure the application process for brokers servicing professional landlords is straightforward. The team’s role is to do the heavy lifting for mortgage intermediaries and their customers, so the process is as efficient and smooth as possible. This has been supported by the launch of an online calculator and access to dedicated portfolio teams.
BDRC’s research found landlords with larger portfolios are significantly more aware of the Prudential Regulation Authority (PRA)’s lending criteria and portfolio application process changes. Less than half (45%) of all landlords are aware of PRA changes but that rises to 67% among landlords with four or more Buy-to-Let Mortgages. However, 74% of those with larger portfolios say the changes have made it more difficult to secure BTL finance, underlining the growing demand for specialist lenders.
Alan Cleary, Managing Director of Precise Mortgages, said: “Buying property within a limited company structure has become increasingly popular, particularly among larger professional landlords. Given the predicted rise in landlords switching to limited company status this year, we can expect this trend to continue.”
“The contrasting levels of awareness of the PRA’s recent changes to lending criteria and the application process between small and larger portfolio landlords points to the growing professionalisation of the latter group who stand to be the most affected.”
“Precise Mortgages is currently one of the most recommended specialist mortgage lenders***, helping landlords to find solutions and supporting them through the process.”
Precise Mortgages offers an extensive range of Buy to Let products designed specifically for applications within limited companies. Full details are available at www.precisemortgages.co.uk.
*BDRC Q1 2018 Landlords Panel syndicated research report prepared for Precise Mortgages. Fieldwork was conducted online between 9th and 20th March among a sample of 1,043 National Landlords Association members
**Research conducted by Pure Profile among 104 mortgage brokers specialising in buy-to-let conducted between February 13th and 21st 2018
***Research conducted by BDRC Mercury, Q1 2018
- Yields on houses in multiple occupation are 1.3% higher than Q1 market average
- Precise Mortgages offers HMO tracker rates from 2.75% and fixed rates from 3.09%
New syndicated research* for the specialist lender Precise Mortgages reveals landlords running portfolios comprising houses in multiple occupation (HMO) and multi-unit freehold blocks (MUFB) are achieving the highest rental yields despite market averages dipping slightly in the first quarter of the year.
Average rental yields for HMO are the highest across all types of property at 7.1%, 1.3% above the market average. Yields for multi-unit freehold blocks are the second highest at 6% highlighting the opportunities for landlords to refocus portfolios, the study by BDRC Continental found.
Across all property types average yields dipped slightly in Q1 2018 to 5.8% from 5.9% in the last quarter of 2017 and are now at the same level as Q1 2017. The highest average yields of 6.7% were achieved on portfolios of between 11 and 19 properties, underlining the continued rise of the professional landlord. By contrast those with just one property achieved yields of 4.8%. Precise Mortgages’ dedicated portfolio team and online proposition ensures that the application process for brokers servicing professional landlords has been made as straightforward as possible.
On a regional basis, landlords with portfolios in the North West reported the highest rental yields at 6.7%. Central London portfolios produced the lowest average yields at 4.8%.
Precise Mortgages, which launched its HMO range more than two years ago, is focused as a specialist lender on responding to market changes and is enhancing its range to specifically address the needs of landlords looking to expand portfolios or invest in the North.
Alan Cleary, Managing Director of Precise Mortgages, said: “As HMOs attract multiple tenancies, gross rental income tends to outstrip single lets and rental income is more secure even if one tenant leaves a void.”
“Experienced landlords are looking to rebalance their portfolios and there is a real opportunity for brokers to support them to work with specialist lenders who are prepared to be flexible and have expertise across the widest product set.”
Precise Mortgages’ HMO product range includes two-year tracker rates from 2.75% and two-year fixed rates from 3.09% as well as lifetime trackers from 3.50% and five-year fixed rates assessed on pay rate from 3.69%. The portfolio lending limit has been increased to £10 million with a maximum of 20 properties with Precise Mortgages and unlimited with other lenders.
Full details regarding the Precise Mortgages buy to let range are available at www.precisemortgages.co.uk
*BDRC Continental Q1 2018 Landlords Panel syndicated research report prepared for Precise Mortgages. Fieldwork was conducted online between 9th and 20th March among a sample of 1,043 National Landlords Association members