Mortgages: Banks warned against pushing up interest rates

iStock_000004583777XSmallThe Financial Conduct Authority (FCA) has warned banks and building societies that changing the terms and conditions on tracker mortgages could break consumer protection laws. These types of loan are known as a tracker mortgage, because the interest rate charged is designed to only change in line with the rate it tracks, usually the Bank of England base rate. However, over the past few months, two high profile lenders, the Bank of Ireland and West Bromwich Building Society, have taken advantage of obscure ...

Buy to let: Thousands of borrowers face interest rate hike

iStock_000010528981XSmallThousands of buy to let investors are facing a hike in interest rates, which will significantly increase their monthly mortgage repayments. Despite Bank of England base rate remaining at 0.5% and with no movement expected by most financial experts for at least another three years, the West Bromwich Building Society has announced an interest rate rise for buy to let investors. The move means some 6,700 buy to let investors will see their interest rate rise by 2% from 1st December onwards; ...

Buy to let: Renting to students “offers highest rental yield”

Tiny Houses 2As students head back to university and investors look for attractive returns, new research has shown that students can make the best type of tenants for buy to let investors. The research, conducted by the National Landlords Association (NLA), shows property let to students offers an average gross rental yield of 6.7%, much higher than the UK average of 6.1%. At the same time Houses of Multiple Occupation, or HMOs, for short, where a single property is ...

Buy-to-let mortgages soar in popularity

iStock_000011825116_ExtraSmallThe buy-to-let sector has soared in popularity. According to recent data published by the Council of Mortgage Lenders (CML) buy to let mortgages now make up a record portion of all mortgages in the UK. Last year, buy-to-let mortgages accounted for 12.9% of the market. However, at the end of March, lending had grown by 0.5%, taking buy to let mortgages to a record 13.4% of the overall market. The buy-to-let mortgage is growing in popularity, with the rise in popularity due mainly to landlords taking advantage ...