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Halifax are increasing their standard variable rate (SVR) for new customers with effect from January 4, 2011.

Existing Halifax customers currently on the standard variable rate are paying 3.5% and they will not be affected. The new higher rate of 3.99% will be paid by new borrowers at the end of their fixed or tracker rate – if they do not remortgage on to a better deal.

There are a number of mortgage lenders that have made changes to their standard variable rates recently, including the Nationwide and Skipton Building Societies. Figures released by the Nationwide Building Society show that their super low SVR has cost them £300 million for the first six months of the year. New Nationwide customers now have a higher 3.99% SVR, instead of the existing customer rate of 2.5%.

The Skipton Building Society went one step further. They changed the mortgage terms and conditions and charged both new and existing customers a higher SVR. They increased the rate from 3.5% to 4.95%.

Aaron Strutt, a broker at Trinity Financial Group, says: “This increase by the Halifax will not be welcomed by any new customers. However, the bank does have a particularly good product transfer policy and the new SVR is in line with other big lenders.

“When customers come to the end of their Halifax rate they should contact their broker who can arrange a product transfer. This will allow many borrowers to switch in to another deal and not pay the new SVR.”

November 26, 2010

Abbey have launched a range of large loan mortgages available up to £2 million. There are fixed and tracker rate options with two year fixes at 3.24% and trackers at 2.85%. The arrangement fee is 0.4% of the mortgage.

Trinity Financial have a good relationship with a number of the private banks and for wealthier clients there are a number of initiative mortgages that can be negotiated. We arranged a 100% mortgage for one of our clients recently and we are in the process of securing finance for another client looking to remortgage his buy-to-let portfolio to free up cash to purchase more property.   Private banks will look to help asset rich, cash poor borrowers.

November 12, 2010

An online guide offering legal advice on how to prevent squatters has been launched.

The guide says that anyone looking to remove squatters from their home can apply for an interim possession order, which requires the squatters to leave the property within 24 hours. It is then an offence for the squatter to return to the property within 12 months.

Housing Minister, Grant Shapps is quoted as saying: “I want to shut the door to squatters once and for all, and for homeowners to know their rights just as well as those looking to take over their properties. That is why I am publishing advice making it clear how the law is on their side and that there are steps they can take to take back their home quickly and efficiently.”

To see the guide click on the following link: http://www.communities.gov.uk/documents/housing/pdf/1762615.pdf

November 12, 2010

A total of 31% of estate agents are either dissatisfied or very dissatisfied with agency mortgage brokers, according to a survey by Obligo.

A total of 54% of the 300 estate agency firms surveyed say the service that they receive from in-house or outsourced brokers was average. Just 15% say that they were satisfied or very satisfied with their existing mortgage arrangements. The biggest problem with brokers - according to the survey, with 71% of the vote, was agents not being kept up to date with the progress of the mortgage application. 15% of agents felt that their broker was not fast enough.

Aaron Strutt, a broker at Trinity Financial Group, says: “We have an excellent relationship with a number of estate agents and we appreciate that it is important to update them with the progress of the application, also to be honest about the clients chances of getting a mortgage. If you are not happy with your current broker then we can help, we have expert advisors available and keen to build a consistent relationship.”

November 12, 2010

Buy-to-let mortgage lending rose by 12% in the third quarter of this year, according to the latest figures from the Council of Mortgage Lenders (CML), supported by ongoing demand for rental property against a backdrop of a dysfunctional owner-occupier market.

There were 26,900 loans advanced in the third quarter, worth £2.8 billion.  This quarterly rise of 8% by volume and 12% by value is the second consecutive quarterly increase in lending.

CML director general Michael Coogan said: “We would expect buy-to-let demand to pick up further if the current rising rental trends continue and house prices remain broadly stable. However, there is short term uncertainly as a result of the unresolved debate on housing benefit and landlords’ response to new limits.

“The bigger question is whether there will be sufficient supply side capacity to meet that demand, as the number of buy-to-let lenders dwindled in the credit crunch after 2007 and is yet to be fully restored.”

There are now more lenders in the buy-to-let market and there are rumours that a very big bank will soon return to lending.  The lowest investment mortgages are now not that far away from some residential rates and there are a number of low arrangement fee options.

November 12, 2010

Figures calculated in The Times on Saturday show the problems many students face as they try to get a mortgage after university.

Story below:

“Many lenders are already factoring in student loan repayments when they calculate whether or not a mortgage is affordable, but with tuition fees set to increase dramatically, a large number of first-time buyers will be saddled with university debts for many more years, restricting their ability to get a mortgage for longer. The impact of student debt is already significant.

Calculations by Aaron Strutt, a mortgage broker at Trinity Financial Group, indicate that a borrower with an income of £35,000 would be making student loan repayments of £150 a month, deducted from his or her salary. He says that this loan repayment would restrict the amount that could be borrowed from Halifax by £29,000, from Yorkshire Building Society by £21,000, from HSBC by £20,000 and from Santander by £13,000.

The difficulties that first-time buyers face have implications for the housing market as a whole. The FSA has acknowledged that its planned regulations could lead to falls in house prices, which are already wavering. The latest house price index from Halifax shows that prices dropped 1.2 per cent in the three months to October, though some monthly indices have shown increases.”

November 15, 2010

In a bid to get borrowers to make quicker decisions about their mortgages, a number of lenders have turned to offering deals for very short periods of time. Birmingham Midshires launched some great buy to let mortgage rates at the start of this week, but they are set to withdrawn them at 8pm tonight. The lowest rate is a two year tracker at 3.75% and it’s available up to 75% loan to value. The arrangement fee is 0.5%.

RBS have said that their 1.99% two year tracker rate will be withdrawn on November 12. However, Trinity Financial have not yet been given notice that this rate will be withdrawn and this would allow us to continue to access the mortgage through the NatWest for Intermediaries brand.

Accord Mortgages are now offering some low mortgage rates until midnight November 10. Two year fixes are as low as 2.89% and five year fixes at 3.79%. Both mortgages have a £995 arrangement fee and borrowers will require a 40% deposit.

November 5, 2010

Platform Home Loans have made a number of restrictions to its buy to let lending criteria and they will no longer accept applications from self employed professional developers and landlords.

The lender, which is the intermediary arm of The Co-operative Bank, will also no longer allow existing residential customers who request to turn their mortgage in to a full buy to let.

Some lenders have been getting tighter on buy to let criteria, but there are now more banks open to buy to let business. Paragon Mortgages prefer lending to more experienced landlords and they are particularly keen to attract business, previously they were closed for new lending for nearly three years.

Northern Rock will lend to first-time investors and they have some competitive rates and low arrangement fees. To see if I can help you or your customers with arranging finance please feel free to contact me.

November 5, 2010

RBS has reported an operating loss of £1.4 billion for quarter three, compared to a £1.2 billion profit in the previous quarter. The bank says that charges on its own debt dragged profit down and lead to the loss.

Shares fell 0.6p, to 46.67p, having hit a high of 0.49p in opening deals. The bank – which is 83% owner by the taxpayer – said that its underlying performance was better and without the £858 million charge the group reported an operating profit of £726 million.

Chief executive office Stephen Hester said: “Our third quarter results demonstrate that we continue to make progress in our recovery. We are delivering what we set out to achieve.”

In recent weeks RBS have started to offer some really competitive mortgage rates - in particular some great five year fixes – although you will need a large deposit to access them. Despite their commitment to first-time buyers, RBS are still offering some shockingly bad mortgages for first time buyers with a 10% deposit - such as their five year fix at 6.89%.

November 5, 2010