View more on these topics

Price war looms for buy-to-let as lenders look to boost business

Buy-to-let specialists predict there could be a price war as lenders struggle to achieve lending targets with residential mortgages.

Throughout July, The Mortgage Works, NatWest Intermediary Solutions and Skipton Building Society have reduced the rates on their buy-to-let products by 0.4 per cent, 1.4 per cent and 0.3 per cent respectively.

Buy To Let Funding Services principal Geoff Laird says: “I believe some lenders are relying upon buy-to-let to get them through this year because they will not be able to achieve their lending targets on residential properties.

“The demand for rental property is continuing to increase and lenders are going to try to get a share of the business if they are competitive. This might be through rate reductions or lower completion fees.”

Mortgages for Business managing director David Whittaker says: “The pressure is on lenders to perform and that is why we are seeing some repricing. Volumes are a bit low for some lenders at the moment.”

Recommended

1

High-earners could face auto-enrol tax bills

The Government is facing calls to allow high-earners to permanently opt out of automatic enrolment due to concerns that some could face six-figure tax bills if they inadvertently void their fixed protection. The lifetime allowance for tax-privileged pension saving will be cut from £1.8m to £1.5m from April 6, 2012. Investors are able to lock […]

S&P downgrades Greece by two notches

Standard & Poor’s has downgraded Greece’s debt rating from CCC to CC, a move which places the country just two notches above default. The ratings agency has also moved its outlook on Greece to negative, citing the restructuring plan as a selective default. S&P says: “The proposed restructuring of Greek government debt would amount to […]

1

MetLife calls for early access pension plan

MetLife has called on the Treasury to launch a Isa-style pension account which allows savers early access to their pension pot. The provider says the launch of a “mini-pension” to supplement automatic enrolment would improve incentives to save. Savers could contribute up to £5,000 a year into the scheme, with tax relief at 40 per […]

Stop the cold-calling

Royal London is pleased to support the petition calling for a ban on cold-calling for pension and investment products. The petition, launched by IFA Darren Cooke of Red Circle Financial Planning and hosted on the Parliamentary website, calls on the Government to ban cold-calling for pensions and investment products. A similar ban is already in force […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment