Newcastle BS decides not to enter portfolio BTL market

Newcastle BS decides not to enter portfolio BTL market

Newcastle Building Society has announced that changes recently announced by the PRA around buy-to-let portfolio lending will not affect its existing policy as it has no plans to enter the portfolio landlord market.

The rules define a portfolio landlord as a borrower with four or more mortgaged properties, who are now subect to tougher underwriting standards and need to provide details of their assets and liabilities, as well as declare future investment property intentions.

The maximum number of mortgaged buy-to-let properties accepted by Newcastle BS will remain at three, which is not considered as portfolio landlord lending.

The lender stressed that all applications will continue to be manually assessed by its team of specialist underwriters to ensure continued responsible lending.

Last month, Co-Operative Bank and its intermediary arm Platform announced that it would no longer lend to clients who own more than three buy-to-let properties.

Newcastle BS has also has cut rates on a number of fixed rate residential products and introduced free legal fees on many of its products.
Reduced products include a ten-year fixed rate which is now available at 3.35% up to 80% LTV and an 80% LTV two-year fixed rate at 2.15%.

Products come with no reservation or completion fees, free standard valuation, free legal fees for remortgages or £200 cashback for house purchases.

Ben Smith, Head of Product Development at Newcastle Intermediaries, stated: “We have reassessed all of our rates in a bid to offer borrowers choice and flexibility.
“Whilst rates across the market are rising ahead of a potential base rate rise in November, I’m pleased we can offer borrowers a competitive range of fixed rate products. Additionally, our free legal fee feature is ideal for the growing remortgage market.”

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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