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Woolwich buy to seizes on increase in private renting

Woolwich has introduced a five-year fixed rate buy to let mortgage to capitalise on the steady increase in private renting.

Private renting has been growing since the 1990s as a result of changes in working patterns, particularly as contract working has become more popular.

The mortgage is fixed at 7.29 per cent until April 1, 2006 and is available on loans of up to 75 per cent of valuation. If borrowers redeem within the fixed rate period, they will have to pay six months interest. Any number of properties can be bought, as long as they do not exceed £25m. This is the highest on the market as most mortgages usually limit the amount to between £500,000 and £1m.

According to Moneyfacts on January 4, 2000, Chelsea Building Society also has a five-year fixed rate buy to let mortgage at the same rate, but its maximum loan to valuation is lower at 60 per cent. It also limits the number of properties that can be bought – five properties up to a total of £500,000.

However, the most expensive properties are the most difficult to rent and consequently do not provide as much rental yield as cheaper properties. Most prospective landlords would not need to go up to £25m and might prefer to go for a flexible mortgage that has a lower five-year fixed rate.


Neville James harnesses teps and zeros

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Reducing costs is the year&#39s big challenge for providers

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Liverpool Vic buys up Permanent for £150m

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Pinnacle bond pins hopes on Nasdaq

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Who pays inheritance tax and how to declare it

By Kim Jarvis, Canada Life In this article we look at which forms personal representatives (PRs) need to complete and who actually pays inheritance tax (IHT).  To recap, under current rules, any part of the estate that falls within the available nil-rate band (NRB), currently £325,000, is taxed at zero. Anything in excess of the NRB […]


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