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LettingFocus

Unbiased buy to let, property investment and letting coaching, mentoring, advice and seminars for landlords from top selling property author and media commentator.

Bank of China, Mortgages, Defaulting Landlords by Lawrenson of LettingFocus

As you may know from a previous blog post on Monday 6th July, I have recently railed against the fact that in Buy to Let Land the borrower is being carved up by a complete lack of competition among lenders.

BANK ROBBERS
The Lloyds Group (via its C&G and BM Solutions/ Birmingham Midshires brands) and The Nationwide (owners of The Mortgage Works) now now have no competition post credit crunch. (The crunch meant the likes of Paragon and others got starved of funds and Bradford & Bingley and Northern Rock bit the dust for new money.)
Lloyds and Nationwide are charging a minimum of base rate plus 4.2% for buy to let with fees of at least 2.5%.
Outrageous!
So, I’m delighted to see that Bank Of China has now started to market its buy to let mortgages a bit more aggressively.
Finding their mortgages on the Net is hard though.
Possibly harder to find than a story about Tianamen Square on Google’s Chinese operation (Google goes along with Chinese censorship if you did not know – nice people Google eh?)

BANK OF CHINA BUY TO LET MORTGAGE RATES
Their mortgage rates aren’t bad but borrowers must have enough income to cover both their home mortgage, and that of the investment property, in order to qualify.
Also, maximum loan to values are just 65% on freeholds and 60% on leaseholds.
The rates charged depend on if you are buying a freehold or a leasehold property too and how much you want to borrow (whether the property is over or under £250K).
To keep it simple, for what usually I buy - which is freeholds and houses under £250K in value, the maximum LTV is 65% and the mortgage rate is 3.5% over Bank of England base for life.
However, you must take out a 20 year term and they will only do repayment mortgages, there being no interest only option.
The arrangement fee is a reasonable £1495 (and the valuation fees aren’t bad either) though you cannot add these to the loan.
Early redemption penalties only apply in year one and are 1% of the loan which is good compared to UK lenders.
The downsides for many people will be the low Loan to Value, the lack of an interest only option, the fact that your own private (non rental) income is looked at carefully too plus you have to attend an interview at a Bank of China office
Still at least it is some competition for the rogues at Lloyds and Nationwide.

GOOD LOAN TO VALUE DEALS
We, of course, offer some great rates through our affiliation with Mortgage for Business and these DO go up to 75% Loan to Value,
Try Mortgages for Business.co.uk by clicking on Great Rates on Buy to Let Mortgages and quoting LettingFocus for their special offer of £250 brokerage when you draw down a buy to let mortgage - set up especially for us.

LATEST ON EVICTING TENANTS OF DEFAULTING LANDLORDS
Talking of our dumb mortgage lenders, tenants who currently face immediate and unexpected eviction because their landlord faces repossession will be given two months’ statutory breathing space to find a new home, under new government proposals.
You may have seen my email correspondence with the Council of Mortgage lenders on my previous post on 30th May about this.
The problem is because tenancy agreements are deemed unenforceable in cases where the borrower has failed to inform the lender of their intention to let the property.
Under proposals from housing minister John Healey tenants in this situation will be given at least two months to find alternative accommodation, through new powers granted to courts in charge of possession hearings.
Unauthorised tenants will also have the right to be heard at these hearings.
In addition, the government is proposing to force lenders to provide unauthorised tenants with a mechanism to request a two-month delay in repossession from lenders. It also wants lenders to consider other steps instead of repossession, such as appointing ‘Receivers of Rent’ to collect rent and manage occupied properties.
About time too!
Shame the mortgage lenders have had to be forced into this by the Government.
In next weeks’ blog post (out 24th August) I’ll look at the Government’s well meant but silly plans to limit the number of shared houses in some areas.
Link to other posts on today’s post topics:
http://www.lettingfocus.com/2009/05/mortgage-lenders-evict-tenants-too.html
http://www.lettingfocus.com/2009/07/buy-to-mortgage-rates-deviod-of.html
ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
We are LettingFocus.com - the landlord experts.
I’m, David Lawrenson, the author of “Successful Property Letting” which for the last 3 years has been the UK’s top selling property book.
What’s unique about LettingFocus is that I offer independent unbiased
landlord advice seminars covering property investment and letting because unlike most people in the buy to let and property “advice” business I am not linked to a property company, developer, agent or bridging loan financier.
I can tell you where to buy (which areas), what type of property to buy, when to buy, how to buy property at a low price, how to make sure you get tenants who are going to pay the rent and how to manage a rental property to make £s at my one to one consulting service.
I can also comment on “No Money Down” Schemes and “Buying Below Market Value” methods too.
I can answer all your questions on letting property too because I have been a landlord and property investor for over 25 years.
LINKS
Find out about GREAT DEALS we have arranged for landlords by clicking here: Property Investors’ Affiliate and seeing our Affilates page.
More products will be added over the coming months. If you are a merchant with national coverage, get in touch!
For SEMINARS, click here: Property Seminars, Networking Evenings and Consulting
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Time to buy property to let - from Lettingfocus.com.

If I had a pound for every time in the last two weeks some journalist or other contact said to me “Ooh dear, buy to let looks in for a bit of a fall now,” I’d have, er…. about £21Well, sorry folks but actually this year is the best time for the last 6 years to buy property to let.Every experienced residential property investor knows that you make a lot of the money in property when you buy. So when you buy, you have to buy cheaply.
When property prices are booming like they were in 2004 to 2006, vendors will not listen to offers and it will be a struggle to get value.However, in the current market, with vendors struggling financially, you CAN buy cheaply because vendors will listen to offers.And this scenario is made all the more attractive to property buyers because the credit crunch means there is a real dearth of buyers, especially first time buyers. This is because of two things. Either buyers believe all the guff in the press about a huge imminent house price fall and choose to stay on the sidelines or they simply don’t have access to mortgages.

CASH PILES
The smart investors have built up cash piles which mean they can access at least 20% of a property’s value – and they can get good mortgages deals too. They also know that the tenant pool has just got bigger and will continue to do so because all those buyers who are too scared to enter the market and all those who can’t get a mortgage will have to live somewhere. So, they are going to have to rent! This will further push up rents which have been increasing by almost 19% over the last year.It’s tough and I feel sorry for the first time buyers, but that’s the economy folks. And it’s brutal.Now, I have to say, here that I don’t think the property crash will be that severe (though in the Me-too-Identikit Buy-to-Let-Ghetto-Flats which were flogged years ago to hapless novice investors it will be hard – very hard indeed)
In most other places, I don’t think prices will fall far or for too long because interest on mortgages expressed as a % of average incomes (the affordability argument) is not that stretched.Yes really!Right now mortgage interest payments are gobbling up about 18.5% of peoples’ incomes.
This is above - but not much above - the long run average according to the council of mortgage lender’s stats.And even though they are a shade above the long run mean, with earnings still going up at over 4%, this figure will soon come down to about 15% and buying a property will start to look very cheap again.And finally, as we get wealthier, surely it should not be a surprise that people choose to spend a higher % of their income on property.
Why not? After all, clothes, CDs, computers, cars are all cheaper today than they have ever been -leaving more to spend on property.So, whatever the stats say, I think it is perfectly possible for a wealthier economy to live with spending more of its income on property. If by 2010, we look back and the year of 2008 did not turn out to be a belter of a time to buy property to let, then I’ll buy a big round of drinks and cook a great meal at my house for all the journalists who say otherwise.
I’m David Lawrenson from property investment mentors lettingfocus.com.
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
It is fully up to date with all the recent changes to tenancy deposit schemes, HMOs, licensing, capital gains taxes and it has new sections on buying below market value. I’m an expert on the UK property market and a well known property investment blogger and I contribute to newspapers and a host of property websites, write a property investment blog, a number of columns in the press and run a landlords advice service.
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.You can read more of my property investment blog and details of my networking, advice, buy to let networking programme at my website.My next London meeting is coming soon. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, a developer, an agent or bridging loan financier and do not receive commissions from any of these sources.If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.Copyright: David Lawrenson 2008. This blog is updated once a week. Permission must be sought before using the material in the blog.

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Immigration flow may reverse says David Lawrenson of Letting Focus

One of the big threats to buy to let is the risk that the big flow of immigration may one day start to reverse.
New migrants generally rent and the huge numbers coming to the UK – we are talking millions but the fact is no one really knows least of the all the government – have pushed up demand for rented property.
However, the tide could be turning as the economies of the new EU member states strengthen. The numbers of east European immigrants approved to work in Britain dropped from 227,875 in 2006 to 206,905 last year, a fall of nearly 10 per cent, and the trend is expected to accelerate over the next decade. According to the Independent, “Poles, who make up two-thirds of the newcomers, are understood to be returning home in greater numbers, drawn by higher salaries, job shortages and the fall in the value of the pound against the Zloty”

Mortgage Rates
Also, in yesterdays papers was the threat that mortgages could get more pricey. The Head of the City Regulator the FSA said banks may be forced to keep loans on their own books in future rather than packaging them up and selling them off. This could have the affect of raising the cost of money. My view is that this fear is a bit overblown as there are still plenty of other sources of finance available like the building societies.
Meanwhile, in a separate move, Nationwide has raised the amount of deposit required for access to its best loans to 25%. I feel that this news is more significant for the housing market because this tightening of credit, if followed by other lenders, could lead to a bit of a donwturn in housing prices as borrowers find it harder to get funds. Possibly as much as 5 to 7% over the next year if others lenders follow suit.

Buy to Let Mortgage Rates
What about buy to let mortgages? As far as we can see lenders have now stuck another 20 basis points onto the cost of these loans relative to bank base rate than was the case pre-credit crunch days. However, buy to let loans are still available at 80% loan to value. So, if your credit rating is good, and you have access to money, the effect of all this will be that more property should be available to buy (to let) at lower prices than was available before.
Finally, I was quoted extensively in yesterdays Independent. Here is the link to copy into your broswer: http://www.independent.co.uk/life-style/house-and-home/property/investment-get-the-best-deals-ndash-now-787640.html
If you need more advice on property investment or buy to let investment in general please ask me.
I’m David Lawrenson from property investment advisors http://www.lettingfocus.com/
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.I’m an expert on property investing for profit and a well known property freelance writer and I contribute to newspapers and a host of property websites, write a property investment blog, a number of columns in the press and run a landlords advice service.
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, buy to let networking programme at my website http://www.lettingfocus.com/
My next London landlords networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2008. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.

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Higher Mortgage Loan To Value Ratios Are Coming on Buy to Let and Expect More Rejection for The Riskier Property Deals

One of the results of the credit crunch is that the mortgage lenders are getting more choosy about the type of property they will lend money on.
On Saturday the FT carried a story that said it was thought that Northern Rock had pulled out of some agreed mortgage offers on high rise flats, though NR claimed it hadn’t.
Basically, the banks are now dead scared to lend where they are concerned a property might be hard to sell on should it become repossessed – the risk of that has, of course, increased along with the rise in central bank base and more recent rises in inter bank lending rates.
Indeed, last week Victoria Mortgages, went into administration. They had a lot of what might be called non-standard properties. Other lenders are scared of going the same way.

Wary Lenders
As I said in previous blogs, lenders are also more wary of lending to people with poor credit records and anyone with a chequered income history may also find it harder - that will include the self-employed, people reliant on bonus payments or even landlords who are overly dependent on a rent roll.
Also, I cannot now see mortgage lenders being very keen to lend to novice property investors (those with no experience of being landlords) to buy property with “no money down” on the back of closed bridge loans or to buy new build flats against a developer’s supposed “discount”
Borowers will have to expect more scrutiny of their deals and be prepared to face outright rejection.
Unless, that is, the borrower is prepared to pay a much higher interest rate.
Perhaps we may now actually see the end of the rather daft “Become a property Millionaire in 6 Months” nonsense ads.
Yes folks, this is the era where sensible lending will be back. In fact, I expect lenders on buy to let to revert to a maximum 75% loan to value rate for all but the most experienced portfolio landlords.

ABOUT LETTINGFOCUS
I’m David Lawrenson, the author of “Successful Property Letting” - the UK’s top selling property and buy to let book for the last 3 years. I have been a landlord and property investor myself for over 25 years.
At LettingFocus we offer independent unbiased advice and seminars for buy to let investors and landlords as well as one to one advice covering all aspects of being a landlord and investing in property.
Unlike many in the still largely unregulated buy to let and property “advice” business I am not linked to a property company, developer, estate agency or bridging loan provider and as such I am able to give unbiased independent advice on where to buy (which areas), what type of property to buy, when to buy and how to buy property at a low price.
I can also explain how to reduce the risk of getting a bad tenant.
I can tell you how to avoid the many scam artists that plague property advice.

Our Events only take place twice a year.
For our NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors click here:
Next Property Investing Seminar and Networking Event
We have GREAT OFFERS for landlords too, Click here: Services and Products for Landlords to see our Landlords Resources (Useful Links) page. (Selling services to landlords and property investors and have a national coverage? You could be a partner, please get in touch!)
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
ONE TO ONE CONSULTING click here: Property Consulting
CLIENT TESTIMONIALS from past customers click here: Testimonials
BUY THE BOOK click here: Buy the Book at Amazon
THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
To JOIN our Free QUARTERLY NEWSLETTER simply send an email to [email protected] - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR OUR WEBSITE?

WANT TO BE KEPT UPDATED WITH OUR LATEST BLOGS?

Over on the right hand side under all the previous blog entries you will find a button which says “Site Feed.” Simply copy the site feed link into your News Reader or News Aggregator.

If you have a website & are thinking of reproducing material here, that’s fine but we DO require a link to the blog to be included, including also all the links in this section. (The full article including all links must be available to ALL VIEWERS of your site and not restricted.)

TO VIEW RELATED POSTS select a “Category” at the bottom of this page.
WANT TO ADD A COMMENT OR VIEW OLD COMMENTS?
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Copyright: David Lawrenson 2007. This blog is updated at least twice a week

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Sub Prime Crisis: Shop Around for the Best Mortgage Rate But Be Prepared to Pay More If You Need To Re-Mortgage says Letting Focus

For quite a while now we have known that all was not quite right across the pond in the US mortgage market.
Over zealous brokers and lenders have been recklessly advancing heavily discounted mortgages to people on low incomes and no assets.
These loans are known in the market as “sub-prime”.
Once the loans came to the end of their discounted period, many of the borrowers - who it is fair to say, were not among the most financially astute – couldn’t meet their new higher repayments and the lenders who advanced the loans look very shaky.
And it now appears that much of this lousy debt business has been repackaged and sold on as what’s called securitised debt and bought by lots of other financial institutions – cue big falls in the share prices of the banks on this side of the water and around the globe.
Unfortunately, even mainstream interest rates could be set to go up as the credit squeeze really starts to hit. This is because, as a result of the credit crunch, the banks have increased the cost of lending among themselves to the highest rate for nearly nine years. (You can see this from the 3 month LIBOR rate (The London Inter Bank Offer Rate - which is the rate at which banks lend among themselves.))
This now stands at 6.74%, almost 1% above the Bank of England Base rate.

Mortgage Lenders
Mortgage lenders with no branches and hence access to retail savings will likely be the most affected in the short term and the most likely to hike rates – indeed some alreay have.
Lenders who use funds from their own balance sheets rather than securitise their loans and sell them into the wholesale market will offer the better deals.
The message is - shop around for the best mortgage rate - and if you have ever missed a loan or card repayment before expect to pay more for your mortgage too because lenders will be tightening up their criteria now.

ABOUT US
We are LettingFocus.com and I’m David Lawrenson, the author of “Successful Property Letting” - the UK’s top selling property and buy to let book for the last 3 years.
I have been a landlord and property investor myself for over 25 years.
At LettingFocus we offer independent unbiased information for buy to let investors and landlords as well as one to one advice covering all aspects of being a landlord and investing in property.
In a market place full of poor advice, unlike many in the still largely unregulated buy to let and property “advice” business I am not linked to a property company, developer, estate agency or bridging loan provider.
As such I am able to give unbiased independent advice on where to buy (which areas), what type of property to buy, when to buy and how to buy property at a low price. I can also explain how to reduce the risk of getting a bad tenant.

OTHER PAGES AT OUR SITE LETTINGFOCUS.COM:
For our NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors click here: Landlords Seminar and Networking Event
We have GREAT OFFERS for landlords too, Click here: Services and Products for Landlords to see our Landlords Resources (Useful Links) page. (Selling services to landlords and property investors and have a national coverage? You could be a partner, please get in touch!)
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
ONE TO ONE CONSULTING click here: Property Consulting
CLIENT TESTIMONIALS from past customers click here: Testimonials
BUY THE BOOK click here: Buy the Book at Amazon
THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
To JOIN our Free QUARTERLY NEWSLETTER simply send an email to [email protected] - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR OUR WEBSITE?

TO VIEW RELATED POSTS select a “Category” at the bottom of this page.

WANT TO ADD A COMMENT OR VIEW OLD COMMENTS?
To add a comment to this post, simply click on “link to this post” to add your comment and to view comments of other people.
Copyright: David Lawrenson 2007. This blog is updated at once a week
To read archived blogs select a date from the list at the right. To read recent ones, just page down.

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Buy to Let - Where and What to Buy in the UK

Apart from the need to avoid buying flats in Northern English towns like Leeds and Manchester - which are ludicrously over supplied with buy to lets already - people interested in getting into buy to let should in general go for 2 or 3 bed terraced houses with gardens as these will appeal to a wider mix of tenant types. They will rent faster.
In terms of areas, London whilst expensive should continue to do well. Rental demand remains strong here and rents are going up quickly. However, yields are stretched currently – and you would do well to get a net yield over 4% but as more people are renting and as rents continue to go up, this should improve and I don’t see house prices falling heavily here.
I also think that attractive coastal towns in Kent will benefit from improved transport infrastructure and will see prices go up. Just don’t expect great yields here because the rental market in thin due to lack of tenants and low employment levels. However, once discovered by second home owners and commuters (better rail links coming), these places will see house price growth.
On a general level, as ever, the lack of supply of property and the continued unending increase in population due to migration will push rents and house prices up long term. Sadly, lots of novice landlord will still manage to get it wrong by buying flats in areas that are either already or soon will be over-supplied by too much stock trying to chase too few tenants.
At the end of the day it’s about supply and demand!
I’ll be speaking about where to buy and what to buy at my event in London on 16th July. Click here for more information: http://www.lettingfocus.co.uk/enews/enews.html
David Lawrenson is the author of “Successful Property Letting.” Go to the main website at www.lettingfocus.co.uk Copyright: David Lawrenson 2007.

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How Can I Find a Good Mortgage Broker? - A Guide to Using Mortgage Brokers Part 3

11th June 2007. In the third and final part of this blog on mortgage brokers, I’ll look at whether the commission fees paid out by mortgage lenders to mortgage brokers could result in a conflict of interest and customers getting offered a less than optimum buy to let mortgage loan. (For parts one and two of this topic, please see the blogs dated 24th May and 5th June.)
It’s worth making it clear that mortgages for business purposes – such as a buy to let mortgage loan – do not get the same degree of protection as a normal residential mortgage does, so there is an inherent enhanced risk that a broker could sell you an unsuitable product.
For example, suppose a mortgage broker has two lenders – both with similar products - but one pays him a higher commission than the other. Clearly, the one with the higher commission is more likely to get the business.
Alternatively, the broker may decide to reduce the fee he charges to the customer from the higher commission paid by the lender. (Most mortgage brokers charge their client a fee as well as getting a commission from the lender)
Of course, a problem exists if the customer is not offered what would have been a better product because of commission differentials paid by the lender.
The risk is all the greater if a broker only gets remuneration from the procuration fee paid by the lender (i.e. say, because he chooses not to charge the client at all).
Clearly, in this case, he is going to be more driven by procuration fees than if he is getting paid from both client and lender and will be most unlikely to recommend a lender that does not pay a fee.
It’s worth knowing too, that most lenders now also pay so called, “repeat fees" to brokers. These are paid to intermediaries by lenders if they advise existing borrowers to remortgage with the same bank or building society.
These types of fee are relatively new but the amounts paid have increased in recent years as each bank and society lender tries to stop the loss of business to other lenders.
Clearly, these payments could mean an intermediary encourages a client to remortgage with the same lender even though a better deal is on offer with another lender.
However, don’t be too worried, because as another broker told me “Our business is based on our reputation, so it is not in our interest to recommend a mortgage loan purely based on commission -especially in the buy let arena where we want landlords to keep coming back as they build up their property businesses.”
At the end of the day, as ever, it always pays to shop around. If you use a mortgage broker to arrange a buy to let mortgage, don’t be afraid to ask him what fee he is getting from the lender. Then check on the net that what he has offered you looks good.
But, be prepared to pay him for the work he has put in on your behalf. In other words, be aware, ask questions – but don’t be mean!
David Lawrenson is the author of “Successful Property Letting.” His website is at www.lettingfocus.co.uk Copyright: David Lawrenson 2007.

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How Can I Find a Good Mortgage Broker? - A Guide to Using Mortgage Brokers Part 2

For part one of this guide, please see the blog entry on Thursday 24th May.
Clearly mortgage brokers are doing something right because around two thirds of all mortgages are now taken out via a broker, with the figure for buy to let mortgages thought to be even higher than this.
But mortgage lenders are now paying more to brokers so anyone taking out a mortgage may be worried about whether they are being recommended the best product or just one that pays the highest commission.
The payment that the lender makes to the mortgage broker is sometimes called the "procuration fee" - which is just another word for a commission.
Sometimes this is calculated as a flat rate per case – say anything from £150 to £600, sometimes as a percentage of the amount being borrowed or sometimes whichever of the two ways of calculating it gives the highest amount!
Each mortgage lender uses a different fee structure. The amount paid is usually dependent upon the type of product type, who the broker is (and how much business they have put the way of the lender) and what type of loan it is – with more risky “sub prime” loans paying as much as two or even two and a half per cent.
While charges may look high they can work in favour of the customer by saving the lenders money by in effect doing a lot of their work for them.
The lender saves on the cost of having to train and keep qualified sales staff and all the overheads that entails. Many brokers have the lender’s underwriters in our own office and they can sometimes get special deals that are exclusive to them.
Also, the customer can benefit from a faster service because brokers know how to properly complete the lenders’ application forms so that they are right first time.
Also, a really good mortgage broker can also help a customer get a loan where the strict application of the lender’s underwriting requirements would mean that they would not get a loan if they went direct to the lender.
The mortgage broker’s ability to “bend the ear” of a lender will depend upon the extent to which they have brokered good business (i.e. good clients who don’t default) in the past.
In part three, due soon, we will look at whether the fees paid out by mortgage lenders to compete for business from brokers, could result in a conflict of interest and the customer getting offered a less than optimum mortgage loan. Go to my main website at www.lettingfocus.co.uk Copyright: David Lawrenson 2007.

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Being Good to Tenants by LettingFocus.com

One lady who came to one of my recent seminars has this tip for being good to tenants.
If they leave the property it in the same condition as they found it she pays a £100 bonus and interest on their deposit.
She finds this is a nice incentive to them to keep the home in good shape with the view that it will pay off when they leave.
Another thing she does is to send a birthday card on their birthdays and a welcome to their new home on arrival. This would normally be a bottle of wine and a couple of nice but cheap glasses in case they do not have any (as unpacking is not the first thing they wish to do as they enter the house.)
She finds that treating tenants this way leads to few problems with them.
I'd agree. Thanks to Jayne for that tip.

MORE ABOUT LETTINGFOCUS AND WHAT WE DO

LettingFocus.com is the home of landlord information.

At LettingFocus.com, we help landlords and property investors make money in property by coaching them in ways that work, which are ethical and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on either a one to one mentoring / coaching basis or through our occasional group seminars.

AT OUR WEBSITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring
NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event
We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials
BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER simply send an email to [email protected] - Please note we WILL NOT send spam or sell our mailing list to advertisers!

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Removing Squatters - Part One by Letting Focus

First things first, if your tenant decides not to leave when he should -say after the expiration of a section 21 notice - he’s not a squatter, he’s just a former tenant who won’t leave.
For tenants like this you’ll have to use normal court processes to get them out. You must not rely on your own “self help” measures. If it’s an eviction of an assured shorthold tenant following non-payment of rent or because they have not left at the end of the tenancy and after the appropriate correct notices have been served, you can follow the simple court procedures yourself without having to pay for the services of a solicitor.

Real Squatters
Real squatters are people who have no right to be in your property, either because your tenant has let them in (and they are not on the tenancy agreement and there has been no agreement by you to allow them to sub-let), or, they could be a third party who has simply let themselves in, while the property was left empty, unoccupied and unsecured.
In effect they are trespassers. (In fact there is no legal definition of squatter!)
I’ll look at what you can do to get rid of them in part two later of this blog post later this week.

MORE ABOUT LETTINGFOCUS

LettingFocus.com is the home of landlord information.

Hello, I’m David Lawrenson.
I have been a landlord and property investor myself for over 25 years and am author of “Successful Property Letting” – which has been the UK’s top selling property and buy to let book for the last 3 years.
At LettingFocus.com, we help landlords and property investors make money in property by coaching them in ways that work, which are ethical and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on either a one to one mentoring / coaching basis or through our occasional group seminars.
Unfortunately, in the UK today, property advice in the UK is still largely unregulated and what counts as “good advice” is too often more about making the promoter money than giving useful information to the investor.
With no links to property firms, developers or bridging loan providers we can advise on where and what type of property to buy for investment and when to buy it. We also show you how to manage tenants properly.
At a corporate level, we also provide consultancy for banks, local authorities and social housing providers – helping them with their landlord facing or buy to let product strategies. We also write for property websites and are regularly quoted by the media.
We have written articles for numerous publications including The Independent, The Telegraph and quality landlord websites.

AT OUR WEBSITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring
NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event
We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials
BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER simply send an email to [email protected] - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR TO OUR WEBSITE?
IF YOU SELL SERVICES TO LANDLORDS, YOU COULD BE A PARTNER ON OUR AFFILIATE PROGRAMME. PLEASE GET IN TOUCH!

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