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Buy to Let Update
 

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Buy to Let Update

Recent figures show that the pace of growth in the mortgage market has slowed a little from the start of this year and survey indicators show that new buyer enquiries and expectations of house price rises have weakened.

Within the overall market, buy-to-let lending has strengthened so far this year, with gross lending in the first nine months at £19.7bn, up 35% on a year earlier. This is slightly stronger than the total market which was up by 23% over the same period.  In the third quarter of the year buy-to-let lending accounted for 13% of total lending, its highest share since 2008. Estimations indicate a Buy to Let 12 month performance of approximately £27.5bn, up from £20.6bn in 2013.

Looking forward, with the economy expected to continue to grow and low inflation likely to boost real earnings growth somewhat, the prospects look to be for perhaps a steadier pace of growth than it was earlier this year and buy-to-let activity is likely to continue to play a key role in that process.

Santander's Buy to Let products are available exclusively through the Intermediary channel with competitive products offering either flat or percentage booking fees. A free standard valuation (available up to a property value of £2.5m) is available across their Fixed and Tracker range, instructed immediately upon the set up of a new application.

Furthermore 123 Current Account customers* earn 1% cashback on monthly Santander mortgage payments (up to £1,000 per month) when paying by Direct Debit from their Santander 123 Current Account.

*Santander 123 Current Account – £2 monthly account fee.  £500 monthly funding (excludes internal transfers).  Set up minimum 2 Direct Debits. Santander UK mortgages, excludes commercial mortgages. Cashback paid monthly.

Key elements of Santander's Buy to Let policy include:

Applicant

  • Minimum age 21 years and maximum age at the end of the mortgage term 75 years (Cannot go beyond 75th birthday). 
  • At least one applicant must be an owner occupier with a UK residential mortgage showing on the bureau.
  • Must have at least one secured credit commitment, i.e. no first-time buyers who have never owned a property.
  • Available to employed and self-employed applicants. 
  • At least one applicant must have a minimum taxable income of £25,000 per annum; or £50,000 per annum where applicant: 
    • Has five or more secured commitments at application, or 
    • Will have five or more properties on completion

Property 

  • Minimum value £75,000 - no maximum value. 
  • Applicants can have a maximum of seven BTL properties**at completion. 
  • Maximum five BTL properties can be mortgaged with Santander at completion. 

** Includes let properties owned mortgage free.

Affordability

  • 125% rental cover based on a 5% Buy to Let affordability rate 


Don’t forget Santander's online BTL calculator will demonstrate that the mortgage is affordable. The calculator is a very simple tool to check the BTL is self-financing and will ensure the application process is quick and seamless.

For more information on Santander's Buy to Let products, including their comprehensive lending criteria and online guides Intermediaries can visit their website, santanderforintermediaries.co.uk. Alternatively call your dedicated sales contact.

 

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Paradigm Mortgage Services LLP, Wellington House, Birmingham International Park, Solihull, West Midlands B37 7HB | tel: 0845 688 1344 | fax: 0121 781 7339
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