Understanding consumer buy-to-let in seven steps

The changes brought about by the implementation of the Mortgage Credit Directive last month relate, in large part, to consumer buy-to-let regulation, but there still seems to be a lot of uncertainty among brokers on what the changes mean.

Consumer Buy To Lets are now supervised by the FCA, however they are not regulated.

“The aim is to provide more protection for consumers and it has been created with ‘accidental’ landlords in mind – meaning people who let their property as a result of circumstance, rather than part of a business plan.”

So what does it mean in practice for intermediaries? They will need to ensure they have the relevant permissions in place as lenders like Together will check these for all applications received. (more…)

Halifax mortgage limit increased to aged 80

Mortgage lender Halifax is increasing its maximum age limit for mortgages from 75 to 80 years of age.

This comes after a Halifax survey revealed that one in three 20 to 45 year olds expect to work beyond their retirement age.

Read more here.

“Please be aware that by clicking on to the above links you are leaving the M4 Mortgages Ltd website. Please note that neither M4 Mortgages Ltd nor Pink Home Loans are responsible for the accuracy of the information contained within the linked site(s) accessible from this page”.

Barclays launches 100% first time buyer mortgage

Also revealed this week- Barclays are offering 100% mortgages for first time buyers by revamping its “family springboard” mortgage. Previously this deal allowed for a 5% deposit, if 10% of the house purchase price was put into a savings account linked to the mortgage by a ‘helper’ (i.e. parents).

The revamped deal only requires 10% contribution from a ‘helper’ if needed. It will be returned to the ‘helper’ after three years with added interest – providing the mortgage repayments have been kept up to date. The cash in this savings account will receive an interest rate of 2%.

Read more here.

“Please be aware that by clicking on to the above links you are leaving the M4 Mortgages Ltd website. Please note that neither M4 Mortgages Ltd nor Pink Home Loans are responsible for the accuracy of the information contained within the linked site(s) accessible from this page”.