Your HMO Expert

Interesting times we all live in.  Property investing is still alive but you’d be surprised at the rates out there.

I checked the LIBOR yesterday and as of November 14th, the £ Libor was at 3.00000% with reduction of -0.213 in the last week. 

I’m getting letters every other day now from lenders reducing my interest rates on my tracker mortgages (I almost wishes I had gone for more of them to be honest!) but whats happening in the current buy-to-let market?

Well, some new rates were issued last week by Birmingham Midshires and their lead-in rate at 75% loan-to-value is a staggering 5.89% fixed or 6.19% tracker.  So, at current LIBOR even future-forecasting where it may end up, they are making a nice 2.89% to 3.19% on their lending.

But that’s not all; you also have to pay an arrangement fee of 2.5% for the priviledge.  And if you did go for the tracker, its a staggering 3.19% above base rate for 36 months - wow.

So much for the days of 4.99% rates from the leading ex-player in the market, Mortgage Express; I think the new buy-to-let rates are going to hover around the 6% mark despite the recent and forecasted future reductions in the Bank of England base rate.

So for property investing to work smart; keep your eyes peeled on the latest developments and if a good product comes out, snap it up or get a DIP done asap to lock in the rate.

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