Mortgage and Insurance Blog

Date - 21st January 2020

Written by Richard Johnson

 

Hello again readers,

 

I hope you are all keeping safe and well and If you need any assistance with your mortgage finance or insurance needs, please feel free to email / call me and I will be happy to help.

 

 

It has been a busy week or so with many changes in the interest rate world. As well as the usual increases and decreases, we have seen several lenders add 90% loan to value products to their residential rates.

 

 

In criteria news, after the recent changes impacting the self – employed as well as foreign national applicants, this week I thought I would look at the BTL market.

 

 

Lendinvest have amended their pay rate stress test and, now for corporate borrowers their 3.69% 5yr fixed rate will now be stressed at pay rate rather than at 4%.

 

 

Godiva have made changes to their portfolio lending policy by reducing the stress test to 5% across the whole portfolio. But at the same time, they have increased the minimum portfolio ICR from 125% to 145% for Higher/Additional rate tax-payers.

 

 

Kent Reliance will now consider properties up to 10 bedrooms or units for its HMO/MUFB range. First-time landlord options are also available on one to six bedrooms/units and limited company structures are also acceptable.

 

 

In wider news, and sticking with Buy to Let, a record number of new limited companies – or incorporations – were set up last year to hold buy-to-let properties, new research by Hamptons has revealed. According to the estate agent, there were a total of 41,700 buy-to-let incorporations in 2020 – this is an increase of 23% on 2019.

And it said the numbers had more than doubled since 2016, rising 128%, when tax changes for landlords were introduced. In 2016, the 3% investor stamp duty surcharge came into force and the proportion of mortgage interest deductible from tax on buy-to-lets held in personal names began to be phased out.

This has led to a shift in the way investors purchase properties, with increasing numbers shifting towards limited companies to reap further tax benefits. It means at the end of 2020 there were a total of 228,743 buy-to-let companies up and running – an all-time record.

 

 

 

 

In Insurance news, Scottish Widows are strengthening their claims process to ensure that your clients are fully supported when it matters most.

 

Because 63% of their Critical Illness claims are for cancer, they are working in partnership with RedArc and Macmillan Cancer support to improve their cancer claims process. Together, they now offer emotional, physical, and financial wellbeing support.

 

Scottish Widows have also enhanced their claims processes by removing the need for wet signatures and introducing online claims forms, to make submitting claims more convenient for claimants. And all this is backed by their strong pay out record - having paid out 98% of all claims in 2019.

 

 

 

 

I hope you found this post of interest and feel free to get in touch with me if you need any help with your mortgage or insurance needs,

 

 

All the very best,

 

 

Richard Johnson

Cert CII (MP), CeCM, AdvCemap, CeRGI

Mortgage and Insurance Consultant.

Mobile Phone ; 07881802962

Office : 0208 245 8464 direct dial

Email : richard@rjmortgagefinance.co.uk

 

 

Compliance Wording

Your home may be repossessed if you do not keep up repayments on your mortgage

If you wish us to act for you - There will be a fee for the advice given, the exact amount will depend on your circumstances, but we estimate it will be £395 or 1%.

 

 

Last weeks blog post -

15th January 2021

 

 

2020 BLOGS

08th January 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019 BLOGS

11th December 2019

 

 

 

 

 will link to other dates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I hope you are all keeping safe and well and If you need any assistance with your mortgage finance or insurance needs, please feel free to email / call me and I will be happy to help.

 

It has been a busy week or so with many changes in the interest rate world. As well as the usual increases and decreases, we have seen several lenders add 90% loan to value products to their residential rates.

 

In criteria news, after the recent changes impacting the self – employed as well as foreign national applicants, this week I thought I would look at the BTL market.

 

Lendinvest have amended their pay rate stress test and, now for corporate borrowers their 5yr fixed rate will now be stressed at pay rate than at 4%

 

Godiva have made changes to their portfolio lending policy by reducing the stress test to 5% across the whole portfolio. But at the same time, they have increased the minimum portfolio ICR from 125% to 145% for Higher/Additional rate tax-payers.

 

Kent Reliance will now consider properties up to 10 bedrooms or units for its HMO/MUFB range. First-time landlord options are also available on one to six bedrooms/units and limited company structures are also acceptable.

 

In wider news, and sticking with Buy to Let, a record number of new limited companies – or incorporations – were set up last year to hold buy-to-let properties, new research by Hamptons has revealed. According to the estate agent, there were a total of 41,700 buy-to-let incorporations in 2020 – this is an increase of 23% on 2019.

And it said the numbers had more than doubled since 2016, rising 128%, when tax changes for landlords were introduced. In 2016, the 3% investor stamp duty surcharge came into force and the proportion of mortgage interest deductible from tax on buy-to-lets held in personal names began to be phased out.

This has led to a shift in the way investors purchase properties, with increasing numbers shifting towards limited companies to reap further tax benefits. It means at the end of 2020 there were a total of 228,743 buy-to-let companies up and running – an all-time record.

 

 

In Insurance news, Scottish Widows are strengthening their claims process to ensure that your clients are fully supported when it matters most.

 

Because 63% of their Critical Illness claims are for cancer, they are working in partnership with RedArc and Macmillan Cancer support to improve their cancer claims process. Together, they now offer emotional, physical, and financial wellbeing support.

 

Scottish Widows have also enhanced their claims processes by removing the need for wet signatures and introducing online claims forms, to make submitting claims more convenient for claimants. And all this is backed by their strong pay out record - having paid out 98% of all claims in 2019.