Rates are rising The Distributor September 2014 Time is running out! FOR THE USE OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY.
Contents Dear Members, 3 Welcome to the latest edition of our newsletter. Now that September is upon us and the summer lull is over one would expect us to see a boost in business levels across the industry, however for most of the brokers we ve been speaking to, buy-to-let business levels have not waned much at all during the summer months which is fantastic news! What we are likely to see in the coming months is a rush to snap up the good rates currently available before rates rise and we see less competitive rates dominating the market. At present, opinion on when interest rates will rise is split. With the property market currently so buoyant there are those that argue that a rise is needed in order to have a cooling effect on the sector. Meanwhile, as the Bank of England has downgraded its wage forecasts for 2014 there is speculation that rates will not rise for several months yet. 4 This uncertainty is only serving to further fuel demand for good fixed rates. You should be speaking to your clients and encouraging those currently considering taking the plunge to make the move now in order to snap up the best rates. 5 See you next month! Ying Tan Ying Tan Managing Director Club The Distributor 2 6
Our NatWest exclusives will bowl you over! NatWest have given us three exclusive buy to let products, starting from as low as 2.95% up to 70% loan to value. All of these products are available for purchase and remortgage, with free valuation and legals for all remortgage applications. Available for first time buyers, these products are the most competitive in the market! Call us on 01276 601041 for more information. 0.40% procuration fee Rate LTV Fee Rental ERC 2.95% two year fixed 70% 1,495 125% @ 5.25% 2%, 1% 3.50% three year fixed 75% 1,495 125% @ 5.25% 3%, 2%, 1% 4.09% fixed year fixed 70% 1,495 125% @ 5.25% 5%, 4%, 3%, 2%, 1% FOR THE USE OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY. This technical document is for intermediaries only. It should not be shown, given or distributed to existing or potential clients. It is not an advertisement for the purposes of the Consumer Credit Act 1974. Details correct at time of going to press.
Competitive Residential Exclusive Homebuyer Solution Free valuation and 250 cash back Remortgage Solution Free valuation and legals 0.32% procuration fee Rate LTV Max Loan Fee ERC Code 3.54% five year fixed 75% 1,000,000 995 5% for 5 years KA27H 3.54% five year fixed 75% 1,000,000 995 5% for 5 years KA27R FOR THE FOR THE USE USE OF OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY. ONLY. This technical document is for intermediaries only. It It should not not be be shown, given given or or distributed to to existing or potential or clients. clients. It is It is not not an an advertisement for the purposes of the Consumer Credit Act Act 1974. Details Details correct correct at time at time of going of going to press. to press.
BUY TO LET EXCLUSIVE 2.69% TWO YEAR DISCOUNTED RATE REVERTS TO LENDER S SVR OF 5.64% MAXIMUM 60% LOAN TO VALUE RENTAL COVER OF 135% @ 2.69% 999 ARRANGEMENT FEE FREE VALUATION UP TO 1,000,000 NO EARLY REPAYMENT CHARGE FOR THE USE OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY. This technical document is for intermediaries only. It should not be shown, given or distributed to existing or potential clients. It is not an advertisement for the purposes of the Consumer Credit Act 1974. Details correct at time of going to press.
Giving you more options to choose from... Two year fixed products from 2.59% Five year fixed products from 3.89% Two year tracker products from 2.54% Cashback available on selected products No arrangement fee on selected products Free standard legals for remortgage cases LettoBuyandPremierLettoBuy PremierBuytoLetupto 500,000 FOR THE USE OF MORTGAGE INTERMEDIARIES AND OTHER PROFESSIONALS ONLY. This technical document is for intermediaries only. It should not be shown, given or distributed to existing or potential clients. It is not an advertisement for the purposes of the Consumer Credit Act 1974. Details correct at time of going to press.
More Exclusive & Semi Exclusive Products SECOND CHARGE SEMI-EXCLUSIVE 0% interest Equity share of the uplift Up to 85% LTV in total Maximum 20% LTV with lender 2% arrangement fee First charge mortgage must meet standard debt service stress test Early Repayment Charge is the greater of 5% of the amount repaid or the relevant Profit Share. Minimum repayment amount is the greater of 2.5% per annum or the Profit Share (not applicable on sale of property) Maximum aggregate loan per borrower of 1,000,000 Maximum loan per property of 400,000 Maximum single property value of 2,000,000 Minimum single property value of 50,000 Minimum loan per property of 10,000 Private individuals only PORTFOLIO FINANCE SEMI-EXCLUSIVE Initial rate of 2.25% to 4% above industry 3 month LIBOR (rate is subject to negotiation and dependent on serviceability and security) Maximum term of 5 years Maximum 65% LTV for repayment Maximum 60% LTV for interest only Minimum lend amount of 500,000 Minimum property value of 75,000 Rental cover is 125% of capital and interest payment based on a notional base of 2.5% plus margin 0.5% commitment fee (payable on acceptance of the offer and refunded on completion) 1.5% arrangement fee (can be added to the loan) No settlement fees are charged for partial capital repayments if the security is undisturbed. Professional residential property investors with a minimum three year proven track record in the investment sector and a minimum portfolio of 10 properties. Available for UK limited companies, individual, partnerships or LLPs. Club The Distributor 7
Lender Panel & Procuration Fees Lender Product Type Gross Fee Net Fee 0.50% 0.45% 0.50% 0.48% BTL & Residential Commercial & Commercial Additional Borrowing & Product Transfers 0.45% 0.40% 0.75% 947.50 Min 10,000 Max 852.75 Min 9,000 Max 1.25% 1.00% 0.44% 0.41% Bridging Finance 2.00% 1.00% BTL 2nd Charge 2.00% 1.50% Bridging Finance 1.75% 1.50% 0.37% 0.32% & Commercial 1.50% 0.75% Residential 0.50% 0.35% 0.45% 0.30% 0.50% 0.40% Residential 0.42% 0.32% 0.37% 0.25% Club The Distributor 8
Lender Panel & Procuration Fees Lender Product Type Gross Fee Net Fee 0.42% 0.40% 0.32% 0.30% 0.36% 0.34% Residential 0.45% 0.32% 0.40% 0.30% 0.48% 0.43% Residential Bridging Packaged 0.60% 0.60% 1.75% 0.80% 0.50% 0.50% 1.30% 0.50% All Products 0.40% 0.38% Up to 1 mil loan 1 mil to 5 mil loan *All fees are subject to change Residential Residential 5 yr fix + 50% of arr. fee* 0.50%* 0.50% 0.33% 0.40% 40% of arr. fee* 0.40%* 0.46% 0.32% 0.36% 0.60% 0.30% BTL & Commercial Bridging Finance 1.50% 1.95% 0.75% 1.00% 0.44% 0.39% Bridging Finance 1.20% 1.00% & Flexible Mortgages Rate Switches 0.34% 0.20% 0.32% 0.18% Club The Distributor 9
Contact Us 01276 601 041 info@buytoletclub.com www.buytoletclub.com Suite 1.1 Coliseum Building, Riverside Way, Camberley, Surrey, GU15 3YL Mortgage Club Manager Contact Cat Armstrong, by calling 07795 622 605, or email cat.armstrong@buytoletclub.com Telephone Business Development Manager Contact Jon Williams, by calling 07795 115 753, or email jonathan.williams@buytoletclub.com Our Partner Charity The Ollie Young Foundation is a charity dedicated to finding a cure/prevention for brain tumours. With 120 different types of other brain tumours, it is the biggest cancer killer of children. The Ollie Young Foundation also supports local hospices and organisations that helped to support the Young family during their tragic ordeal. Please take a few moments to look at their website and find out a bit more about young Ollie and his family http://www.ollieyoungfoundation.org/olliesstory.html We have set up a JustGiving page and we would appreciate if you could help us raise as much money as possible for this incredible charity! http://www.justgiving.com/tbtlb-support-ollie-young-foundation Images in this months issue have been supplied by www.shutterstock.com Club The Distributor 10