Mortgage Update at Wimbledon pin – July 2015

A review of the latest market information and a focus on the lender Castle Trust, who have an innovative range of products that allow property investors to take out second charge secured loans on their investment properties with no rental stress test and no monthly payments for the duration of the loan.

Wimbledon pin update by howard bowes harvey bowes mortgagesThe host of the Wimbledon pin meeting, Trevor Cutmore, introduced Howard Bowes, Managing Director of Harvey Bowes Limited who delivered an update on the mortgage market. Firstly, Howard spoke of the hunger in the current market place from a lender and banking perspective. Since 2013, 13 new banks have been authorised and there are a further 20 with applications in process. These new banks, which include Bank of Indian, Metro Bank and Paragon to name just a few, are demonstrating a hunger to lend in the UK market.

On the other side of the industry, property investors appear to be a little slow on the uptake. Virgin Money, a leading UK residential and btl mortgage lender revealed that 36% of mortgages are currently on the Standard Variable Rate of the lender. In many circumstances the borrower could take advantage of the lenders appetite to lend and secure a better deal which could provide huge savings on interest payments. However, many landlords have not taken action to review their portfolios. It is important to regularly review one’s portfolio, not only to identify potential savings, but to also ensure that all aspects of the portfolio are running to plan. While many say property investing is a ‘passive’ income, Howard disagrees. It is best practice to treat one’s portfolio as a business, manage it and review it just like any other business. Harvey Bowes Limited are willing to offer a full review of landlord portfolio’s. Just call 029 2175 4150 for more information.

There was also a focus on an innovative lender: Castle Trust who offer a fantastic solution for many property investors lookingcastle trust btl investment wimbledon pin trevor cutmore to release funds. Particularly those on low tracker rates where they do not want to remortgage onto a potentially higher rate. And also for those who are operating at the maximum rental stress test for a lender, yet have remaining equity. Castle Trust will allow a landlord to capitalise on that remaining equity by taking a second charge loan to sit behind the main mortgage and release cash for further property investment. (Or almost any other legal purpose). There is no rental stress test and no monthly payments. The landlord remains in control of the property and controls the top slice of equity, while sharing a predetermined proportion of the equity with Castle Trust in return for ready cash to invest in other projects.

This product is proving very successful, particularly in areas where the land values are high and the rental yield is therefore strained.

To find out more about Castle Trust, contact Harvey Bowes today on 029 2175 4150

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

THE VALUE OF PROPERTY CAN GO BOTH UP OR DOWN. HAVING A HIGH LOAN TO VALUE MORTGAGE MAY PUT YOU AT RISK OF NEGATIVE EQUITY  

 

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About harveybowes
Mortgage Broker and founding Director of Harvey Bowes Limited. A mortgage broking practice with bases in Cardiff & Poole, UK. We take a fresh and positive approach to mortgage broking which pays dividends for both our clients and frankly, ourselves. The team at Harvey Bowes are expert advisors in all aspects of mortgages from residential to commercial and buy to let.

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