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    I suppose I should have added 'legally' - "company B who will legally rent to the public"...
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


      JPKeats your observations are correct and I believe that this arrangement may have a subtext regarding possible breaches of the occupancy HMO license which if done would indeed elicit a higher level of rent.

      I was amazed during my research to read the pronouncements of some of these Property Educators and the lure that they offer to seduce gullible persons to participate in their wonder Master Classes or any other adjective to incentivise their claims , what does seem missing is the mention of having such arrangements meeting the specific criteria of lenders , I just wonder why??? !!


        As it is the last day of 2020 I thought, subject to the moderators consent, to provide details of products available to borrowers on standard property and where they are classified as Non Portfolio. I offer no endorsement for any lender just a mere guide to the various options that might be available.

        I have focused on 5 year deals but if shorter dated incentives are required I am happy to oblige.

        Init Rate Inc Period Init Rept Rev Repat Total Cost
        Property £200000 with rental of £850 per month borrowing 80% on a Non Portfolio basis
        Accord 3.99% Fixed 63 Months £538.63 £606.13 £32,523.69
        Landbay 3.99% Fixed 60 Months £544.29 £695.70 £32,757.40
        Foundation Home Loans 4.59% Fixed 61 Months £624.24 £692.24 £38,423.64
        Property £200000 with rental of £850 per month borrowing 75% on a Non Portfolio basis
        Accord 2.03% Fixed 63 Months £257.12 £568.71 £16,038.56
        Virgin Money 2.09% Fixed 64 Months £264.72 £575.05 £16,472.08
        The Mortgage Works 2.09% Fixed 63 Months £266.48 £668.10 £16,898.24
        Post Office 2.12% Fixed 63 Months £267.64 £579.47 £17,071.32
        The Mortgage Works 2.14% Fixed 63 Months £271.06 £663.71 £17,186.78
        Accord 2.19% Fixed 63 Months £275.57 £564.97 £17,200.91
        The Mortgage Works 2.19% Fixed 63 Months £277.39 £663.71 £17,335.57
        Skipton BS 2.21% Fixed 64 Months £279.92 £613.05 £18,015.88
        Virgin Money 2.24% Fixed 64 Months £281.86 £571.26 £17,569.04
        Skipton BS 2.29% Fixed 64 Months £288.15 £609.01 £18,542.60
        Godiva Mortgages 2.29% Fixed 67 Months £290.06 £568.73 £19,567.02
        The Mortgage Works 2.39% Fixed 63 Months £300.73 £659.34 £18,805.99
        Godiva Mortgages 2.45% Fixed 67 Months £308.29 £564.99 £20,788.43
        Property £200000 with rental of £850 per month borrowing 70% on a Non Portfolio basis
        Platform 1.99% Fixed 64 Months £235.48 £650.83 £14,620.72
        Platform 2.04% Fixed 64 Months £239.70 £646.25 £15,140.80
        Accord 2.03% Fixed 63 Months £240.21 £531.30 £14,973.23
        Virgin Money 2.09% Fixed 64 Months £247.31 £537.21 £15,357.84
        The Mortgage Works 2.09% Fixed 63 Months £248.71 £623.56 £15,778.73
        Skipton BS 2.11% Fixed 64 Months £249.67 £572.71 £16,079.88
        Post Office 2.12% Fixed 63 Months £249.97 £541.22 £15,958.11
        NatWest 2.14% Fixed 63 Months £251.44 £480.56 £15,870.72
        Nottingham BS 2.13% Fixed 62 Months £251.52 £772.27 £16,058.24
        Skipton BS 2.15% Fixed 64 Months £252.62 £568.68 £16,268.68
        The Mortgage Works 2.14% Fixed 63 Months £253.22 £620.04 £16,062.86
        NatWest 2.18% Fixed 63 Months £256.14 £480.56 £16,166.82
        Accord 2.19% Fixed 63 Months £257.32 £527.56 £16,051.16
        Godiva Mortgages 2.19% Fixed 67 Months £257.32 £527.57 £17,373.44
        The Mortgage Works 2.19% Fixed 63 Months £259.14 £620.04 £16,185.82
        Bank Of Ireland 2.22% Fixed 62 Months £260.84 £480.56 £16,382.08
        Platform 2.24% Fixed 64 Months £261.33 £583.33 £16,775.12
        Skipton BS 2.21% Fixed 64 Months £261.51 £572.71 £16,837.64
        Virgin Money 2.24% Fixed 64 Months £263.19 £533.43 £16,374.16
        Nottingham BS 2.30% Fixed 62 Months £268.33 £763.00 £17,100.46
        Skipton BS 2.29% Fixed 64 Months £269.07 £568.68 £17,321.48
        Godiva Mortgages 2.29% Fixed 67 Months £270.98 £531.31 £18,288.66
        Leeds BS 2.39% Fixed 63 Months £278.83 £652.17 £17,800.29
        The Mortgage Works 2.39% Fixed 63 Months £280.82 £615.68 £17,551.66
        Leeds BS 2.44% Fixed 63 Months £284.67 £652.17 £18,133.21
        Skipton BS 2.44% Fixed 64 Months £284.67 £564.67 £18,319.88
        Metro Bank 2.44% Fixed 60 Months £287.71 £483.45 £17,347.60
        Godiva Mortgages 2.45% Fixed 67 Months £287.87 £527.57 £19,420.29
        Property £200000 with rental of £850 per month borrowing 65% on a Non Portfolio basis
        The Mortgage Works 1.64% Fixed 63 Months £181.22 £523.77 £11,526.86
        The Mortgage Works 1.79% Fixed 63 Months £196.89 £521.38 £12,514.07
        Leek United BS 1.87% Fixed 63 Months £204.76 £568.28 £12,704.88
        Godiva Mortgages 1.89% Fixed 67 Months £207.90 £493.90 £14,062.30
        Leek United BS 1.96% Fixed 63 Months £213.80 £566.12 £13,274.40
        The Mortgage Works 1.99% Fixed 63 Months £218.89 £521.38 £13,650.07
        Platform 1.99% Fixed 64 Months £218.90 £550.00 £13,559.60
        Accord 2.00% Fixed 63 Months £219.16 £492.01 £13,397.08
        Platform 2.04% Fixed 64 Months £221.00 £541.67 £14,194.00
        The Mortgage Works 2.04% Fixed 63 Months £222.69 £517.43 £13,889.47
        Accord 2.03% Fixed 63 Months £223.29 £493.88 £13,907.27
        Godiva Mortgages 2.05% Fixed 67 Months £223.79 £490.15 £15,126.93
        Virgin Money 2.09% Fixed 64 Months £229.89 £499.38 £14,242.96
        Accord 2.11% Fixed 63 Months £230.33 £490.14 £14,100.79
        The Mortgage Works 2.09% Fixed 63 Months £230.95 £579.02 £14,659.85
        Skipton BS 2.11% Fixed 64 Months £232.09 £532.38 £14,954.76
        Leeds BS 2.13% Fixed 63 Months £232.17 £609.31 £14,825.71
        Post Office 2.12% Fixed 63 Months £232.31 £502.97 £14,845.53
        Leek United BS 2.13% Fixed 63 Months £233.23 £568.28 £14,498.49
        NatWest 2.14% Fixed 63 Months £233.61 £446.47 £14,747.43
        Leeds BS 2.14% Fixed 63 Months £233.61 £610.24 £14,951.43
        Nottingham BS 2.13% Fixed 62 Months £233.77 £717.77 £14,957.74
        Skipton BS 2.15% Fixed 64 Months £234.70 £528.35 £15,121.80
        The Mortgage Works 2.14% Fixed 63 Months £235.39 £576.38 £14,939.57
        Godiva Mortgages 2.15% Fixed 67 Months £236.50 £493.90 £15,978.50


          There is a glimmer of hope in the Residential Homeowner sector

          4 lenders have announced their return to lending up to 90% Loan to value:-
          Barclays Bank

          Given the absence of three of these larger lenders in recent months it might suggest that some lenders are feeling a little more positive going into 2021.


            Is this going to become a general practice of all lenders

            An announcement from Halifax to all Mortgage Intermediaries today.

            Halifax has tightened its affordability criteria for borrowers with any self-employed income or those earning less than £30,000 a year.

            In a note to its intermediaries, Halifax said the 4.49 times income multiple currently used for workers earning less than £25,000 will be extended to include those with annual earnings of less than £30,000.

            The bank said it was making the change to ensure it continued to lend responsibly to borrowers on lower salaries.

            Applications that include any element of self-employed income will also be subject to the same change.

            Halifax said this temporary change would give it “short-term flexibility on products and service levels”. The criteria change will kept under regular review.

            To capture the information, the affordability calculator on the Halifax Intermediaries’ website will include the question, “does any applicant have any self-employed income?”

            All other loan to income ratios will remain the same.

            A spokesperson for Halifax said the bank regularly reviews criteria and the change remains in line with the market.

            The changes take effect from Thursday 7 January


              A few lenders have reduced their rates on both Buy to Let as well as for residential , lenders like Paragon are waiting to see what their kety competitors are going to do before making any changes but from comments made by Sales Managers for several lenders , the volume of applications has slowed down with the majority of business being remortgages.
              I will keep the forum updated with any key changes including criteria that arise.


                Santander make a significant change to its criteria sofar as Self Employed applicants are concerned for residential mortgage applications, see below

                "Santander is limiting all new residential mortgage applications where any applicant is self-employed to 60% LTV to help manage its current pipeline cases.

                All full mortgage applications submitted from 6am on Saturday 9th January will be assessed using the new self-employed lending policy.

                Reiterating its self-employed evidence requirements, Santander said that it is unable to use income towards affordability if a client's business is not currently trading due to Covid-19 tier restrictions.

                Where borrowers use personal bank statements for their business, Santander requires business related credits highlighted to be able to assess current trading levels.

                Where SA302s are used to prove income, Santander requires the business turnover provided to help cross reference with the bank statements.

                In addition to providing supporting rationale that the business bank statement supports the income declared, Santander is also asking brokers to provide supporting rationale that the income is sustainable going forward."


                  Changes following Brexit

                  Two lenders who are part of One Savings Bank have made an announcement concerning EU Nationals choosing to stay and work in the UK, It is reasonable to assume that all other lenders will have the same requirements in place even though they haven't broadcast such information openly to Intermediaries.

                  EU Settlement Scheme
                  Precise and Kent Reliance have issued an update following Brexit last week.

                  For Applications submitted from 1st January 2021 where the applicant is an EU citizen they must provide a valid permanent residence document or evidence that settled or pre-settled status has been granted under the EU Settlement Scheme. This can be in the form of a letter from the Home Office confirming their settlement status or a Residence Card. Settled status is awarded to EU citizens that can evidence a minimum of 5 years’ continuous residence in the UK, whereas pre-settled status applies to those who have not resided in the UK for 5 years.

                  Those awarded pre-settled statuses can apply for settled status once the 5-year residence requirement can be met.


                    Saffron Building Society have today made the following announcement relating to ExPats

                    Our Expat BTL is no longer available to applicants living in an EEA country.”

                    I believe that this might be the tip of the iceberg so far as eligibility is concerned for ExPats living in the EEA and I will update should other lenders introduce similar restrictions.


                      I have researched maximum percentage loan availability in the residential home mortgage market, my findings indicate that there are presently 25 lenders now prepared to consider such applications up to 90% subject to current income criteria assessment.
                      It is important to note that where applicants have requested Credit Card/Secured/Unsecured payment holidays because of the current Covid19 this could have an impact on gaining acceptance , if this is thought to be a problem please make sure that if engaging a broker to assist, forthem to ensure that any enquiries made to lenders does not result in a Hard Footprint being made on the CreditInsight.


                        Is this the first of many lenders being honest so far as Stamp Duty 31st March is concerned.

                        Hampshire Trust Bank is no longer accepting applications for mortgages required to complete before the end of the stamp duty holiday deadline on 31 March.


                          Nationwide are due to increase the maximum mortgage term to 40 years for lending at 90% LtV.
                          With affordability under pressure for 1st time buyers the extension to 40 years will give positive assistance.


                            Lenders are expecting an increase in mortgage payment defaults during 2021

                            High street banks are expecting more mortgage payment defaults at the start of this year, as demand is set to fall for home purchase lending.

                            The end of mortgage payment holidays, as the economic impact of the pandemic hits households could be among the reasons lenders indicated in the Bank of England’s credit conditions survey that they anticipate an increase in default rates at the beginning of 2021.

                            However, banks tipped the availability of mortgages to increase in the first three months of 2021, according to the poll carried out in the final quarter of last year.

                            In the survey, banks said mortgages became more expensive at the end of last year but are set to fall in price at the start of this year.

                            Borrowers with higher loan to value (LTV) ratios of more than 75 per cent are expected to benefit from a wider availability of mortgages.

                            The end of the stamp duty holiday is widely expected to take some of the steam out of demand in the coming weeks, meaning lenders could potentially expect to compete harder for remaining borrowers.

                            Demand for remortgaging is forecast as increasing at the start of

                            Sarah Coles, personal finance analyst at Hargreaves Lansdown warned that the winter has sent a chill through the banks, as the impact of the pandemic starts to bite.

                            “More people are set to fall short on mortgage and credit card payments, while an outbreak of cold feet in the property market is likely to mean less demand for mortgages for house purchases,” she said.

                            “The heat is coming out of the housing market as the stamp duty holiday draws to a close, and much of the pent-up demand has worked its way through the system. But there are also signs that bleaker aspects of the pandemic are starting to make themselves felt.

                            “Some homeowners have worked through the pandemic with their income unscathed, but enormous numbers saw their income cut as they lost work or went onto furlough. Some of them made a Herculean effort and somehow stayed on top of their bills.

                            “Others have done all they can, and taken every available payment holiday, and are still struggling. At the beginning of this year, the high street banks expect them to start defaulting on mortgage payments.”

                            John Goodall, chief executive of Landbay, agreed that demand was likely to ebb away.

                            He added: “The key driver for the increase in demand for house purchase borrowing in Q4 2020 was the stamp duty holiday. It does not surprise me that demand is likely to fall in Q1 this year as buyers will no longer benefit from this tax break.

                            “I agree with the data showing an expected rise in remortgage business during the start of this year. We are experiencing high levels of applications in the buy-to-let space and expect this to continue over the next few months.”


                              I'm not convinced. I think these experts are working on a worst case scenario.

                              Many people have saved money during the pandemic. 80% salary on furlough, after tax at 20% (for some it will be 40%) and NI at 11% works out at a reduction in take home pay of around 14%. Those people won't be spending on commuting, £4 sandwiches, or £2 coffees either. Then take into account the fact that bars, pubs, and restaurants are closed, and weekends away are a definite no-no. Also, people won't be spending as much money on clothes for going out - because there's no going out. Non-essential shops were closed for a time, and most clothes shops have had their changing rooms closed for most (if not all) of the time since March.

                              We have a renewed confidence with the Brexit uncertainty removed and a COVID vaccine well into rollout. There will be job losses, but there will be plenty of renters who keep their jobs - and a lot of them will be looking to buy.

                              I don't think stamp duty will make a massive difference in a few areas either (especially up North). Houses around here (Manchester) in the 'up to £150k' range have been getting lots of viewings, multiple offers at asking price, and then going to sealed bids. You're talking a few hundred pounds extra for stamp duty for those properties in April. I guess that one depends more on your location though.

                              From 31st January, people from Hong Kong can come here for 5 years, then apply for citizenship. The Home Office are predicting 154,000 in the first year, but just look at how they underestimated the Eastern European influx in 2004. If China don't change their ways - and they show no signs of doing so - they will come in their droves.

                              Hong Kong has one of the highest rates of millionaires per capita in the world, and what better place to put their money than the UK property market ??


                                You may indeed be correct , but it is evident that arrears are impacted by a failure to deal with individual unsecured debts which have proliferated due to a “ low interest rate “ environment, these are additionally compounded by PCP contracts on vehicles which in the main are standing idle because of work and lockdown constraints.
                                As a broker I find my email box and telephone calls increasing in number from what one would have previously regarded as well healed individuals but for many they either have been furloughed or indeed have regrettably been made redundant and the level of debt has necessitated seeking help in dealing with such matters.
                                One genuinely does hope that the forecasts of rising defaults do not materialise since the property sector is based on confidence and if that becomes fragile those being required to try and downsize or accommodate resolutions to their borrowing issues face serious challenges.
                                Lets all keep our fingers and toes crossed that the predictions are proved to be groundless.


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