The average monthly rent is now £932. Rents in London increased by 3.7% in January 2019 from the same month of 2018; the average rent in the capital now stands at £1,588 a month.
The lender’s commitment is designed to show investors with property portfolios that it is looking at the market with a long-term perspective, despite the uncertain nature of the housing market at the moment.
London’s most notoriously expensive borough tops the list as London’s most uninhabitable, with Kensington and Chelsea home to a basic cost of living of £2,452 a month, 117% of the average monthly net pay in the borough.
The mortgages are available to first-time, self-employed and experienced landlords and a maximum loan size of £500,000 up to 70% LTV.
The 3-year discounted product is offered to 70% LTV at a current rate of 3.65% (2.10% below SVR) and properties must have a minimum value of £150,000 and qualify as a furnished let under HMRC rules.
However, the index powered by MIAC, also showed since the vote to leave the European Union in June 2016, total rental growth across the English regions has been seven times that of London (3.69% to London’s 0.52%).
In the residential sector for the first time two of the top five most popular searches feature adverse credit conditions, with self-employed, one years’ accounts being the top search followed by maximum age at end of term.
Some 50% of universal credit claimants the charity helped were falling behind on their mortgage payments or in rent arrears – the same number as before the reforms took effect, separate research by Citizens Advice found.
From today, members will have access to the 95% LTV residential product. It’s a 2-year fixed at 3.09% with a maximum loan value of £300,000 and a free valuation and no product fee.