21 August 2018

press coverage

Accidental landlords are not allowed to simply rent out their property and keep their residential mortgage. You either need your lender’s consent to let or a specialist buy-to-let mortgage. Mark Harris of SPF Private Clients, explains: ‘Consent-to-let tends to be on a short-term basis. If your lender agrees then they may do nothing, charge a one-off fee or load the interest rate during this period. Quite often the consent-to-let will be for a finite period – typically six or 12 months. If the property is to be let out on a long-term basis then landlords need a buy-to-let mortgage.’ The Mail on Sunday, 11 August 2018

Thousands of Londoners were braced for an interest rate hike, which could push up average mortgage payments by more than £300 a year. But for many the rate rise didn’t come as a surprise. Mark Harris of SPF Private Clients, says: ‘Many borrowers have been taking advantage of the competitively priced fixed rates available and protecting their monthly payments against future rate rises.’ The Evening Standard, 1 August 2018

Tempted to buy a flat on holiday? You may need to think again as many of the places we love to holiday are poor investments, and you need to think carefully about how you finance your purchase too. Miranda John, international manager of SPF Private Clients says: ‘There are different mortgage options across Europe, so it is essential to do research from the outset if finance is required. Most importantly, the buy-to-let mortgage does not exist per se for non-residents, because lenders will not take into account rental income and the loan amount is determined by your income and outgoings. With regard to differences across Europe, for example, French and Spanish lenders have worked hard to provide a range of lending options, whereas lending in Germany is difficult to secure and the terms are restricted.’ The Times, 28 July 2018

The 0.25 percentage point rise on the base interest rate could spell the end of cheap money for borrowers, with several lenders already reviewing their SVRs. ‘They all wait for one or two big lenders to increase their rates and then follow suit. I would be disappointed if any of them took this as an opportunity to add more than 0.25 percentage points to their rates,’ says Mark Harris of SPF Private Clients. The Times, 4 August 2018

Anyone nearing the end of their mortgage deal should be looking at their options. If you want to extend your loan for a loft extension, for example, you may be better off remortgaging, says Mark Harris of SPF Private Clients. ‘If you want to borrow an extra £50,000 to £100,000 for home improvements, your bank would have to re-underwrite you and reassess everything, so you may as well look at the whole market.’ The Times, 11 August 2018

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