Over the last 12 months or so I have commented a number of times on the Castle Trust product which gives investors the chance to borrow up to 85% LTV by providing a second charge equity loan of up to 20% of a buy-to-let property’s value to top up a standard buy-to-let mortgage.
There is no interest on the loan, instead Castle Trust will take up to 40% of any increase on the property’s value when the loan is redeemed. I have often applauded the lender’s innovation and now have the chance to do so again as Castle Trust has got even better. The product is now available to sit on a Mortgage Trust first charge on a purchase.
Elsewhere in the market Clydesdale has announced it will now lend on three properties within the M25 up to £1.5m (this was previously set at £1m).
As Sir Richard Branson hit the headlines for offering all Virgin employees unlimited annual leave (albeit with a few ‘clauses’) his financial enterprise Virgin Money was grabbing the trade press column inches for its new build incentives, including cash up to £1,000 without impacting the property valuation which can go towards Stamp Duty or help to pay legal fees.
Shawbrook has removed its requirement for representation and will now allow non-representation for all refinancing for both individuals and limited companies.
And as Keystone launched a new product range it seems buy-to-let lenders across the industry have embarked on something of a price war. Finally the idea of alternative finance providing a boost to the industry continued to gather pace with the launch of new peer-to-peer lender Landbay.
The lender will offer residential buy-to-let mortgages and claims to take a ‘holistic’ approach to affordability. Headed up by John Goodall the lender has grabbed the attention of much of the trade press.
These types of lending platforms are very exciting. Buying a property will always be one of the best investments and lenders like this give people the chance to put their money into bricks and mortar.
Ying Tan is managing director of the Buy to Let Club, part of The Buy to Let Business
