Britain’s lenders are turning their backs on first-time buyers and other traditional borrowers, and granting mortgages to landlords instead amid signs of a new buy-to-let bubble.

Northern Rock this week joined an expanding list of lenders, including a Lloyds Banking Group subsidiary, pushing out new buy-to-let loans on better terms, while Santander is also preparing to enter the market.

In an extraordinary admission, Nationwide – one of the biggest mortgage lenders – says it would rather give mortgages to landlords than first-time buyers. Matthew Wyles, the society’s “distribution director”, told an industry debate hosted by HSBC: “As a lender, we would rather lend 75% LTV [loan-to-value] on a buy-to-let mortgage to an experienced buy-to-let investor, than to a first-time buyer at 95% LTV.”

Figures from the data provider Moneyfacts show that the number of buy-to-let loans available to landlords has doubled over the past year, with the pace of new launches accelerating in recent weeks. According to its research, there are 434 different buy-to-let loan offers currently available, compared with 215 at the start of 2010 and 330 just a month ago.

Behind the dash back into buy-to-let is the rise in rents in a market fuelled by frustrated first-time buyers who can’t find the finance for a home of their own.

This week, LSL Property Services , Britain’s biggest network of letting agents, said that rents were “powering ahead” in many parts of the country, especially London.

David Newnes of LSL, which owns Your Move and Reeds Rains, says: “Landlords are seeing demand for their properties go from strength to strength. First-time buyers simply can’t afford the average £25,000 deposit required and, as a result, most are remaining in rented accommodation for nearly a decade.

“The growing demand continues to outstrip supply, and this is pushing rents upwards beyond the rate of inflation, and well above wage rises.”

Big lenders are also easing constraints that were put on borrowing during the credit crunch. According to the Council of Mortgage Lenders (CML), £3bn worth of loans were granted to landlords in the last quarter of 2010 – substantially below the peak levels of 2006 and 2007, but up 42% over the year.

The CML added that the average loan ceiling for investors – the maximum amount an individual landlord can borrow from a single lender – has risen from £2m to £2.5m over the past year. Separately, maximum LTVs on buy-to-let mortgages have edged up in recent months towards 85%.

State-owned Northern Rock , which this week cut rates on buy-to-let loans by 0.4%, will offer landlords mortgages on up to 10 properties, worth up to £3m. Landlords need prove an income of only £25,000 a year to start qualifying for buy-to-let loans. Meanwhile BM Solutions , a division of Lloyds, is promising a “one-minute mortgage” deal for landlords.

Some of the specialist lenders that withdrew from the market during the credit crunch have now reopened for business. A name synonymous with the pre-2008 boom, Mortgage Trust , part of the Paragon Group, this week returned to the market three years after closing its doors. It promises cheap and simple mortgages for smaller landlords, starting at 3.99%, and what’s called “fast-track” underwriting through mortgage intermediaries.

Fast-track underwriting has a controversial recent history. In July last year, the Financial Services Authority (FSA) published proposals to ban fast-track and “self-cert” mortgages, effectively granted without stringent checks on an applicant’s income and ability to repay. It also expressed concerns about interest-only mortgages.

But unlike conventional residential mortgages, buy-to-let deals are not subject to regulation by the FSA. Interest-only lending to landlords is commonplace, and lenders are free to offer fast-tracking. In a note this week hailing the return of Mortgage Trust, Legal & General’s Mortgage Club told landlords that the loans would be subject only to “fast-track, credit score-based underwriting”.

The revival in buy-to-let has angered critics who argue that lending to landlords has prevented millions from buying a home. Matt Griffiths of the campaign group PricedOut says: “For anyone concerned about maintaining widespread home ownership, this is deeply worrying. Many young people are now being effectively disenfranchised from the property-owning democracy by buy-to-let investors. Buy-to-let benefits from both cheaper mortgage finance (via the use of interest-only mortgages) and tax breaks on interest payments, which means they can easily outgun any first-time buyer for the purchase of lower-end properties.

“This has been exacerbated by the growing tendency of first-time buyers to use repayment mortgages (over 90% did in December 2009), and the higher deposit barrier required by cautious mainstream lenders. This is deeply ironic, as buy-to-let activity has been much riskier and more volatile than lending for normal homebuying.”

Will the re-emergence of buy-to-let be a warning light to regulators and the Bank of England? Eight of the top nine UK buy-to-let lenders in 2007 have since been either rescued by the taxpayer, closed to further business or forced to undergo substantial retrenchment. PricedOut argues that, in the run-up to the financial crisis, buy-to-let disproportionally utilised the new financing opportunities created by investment bank securitisation deals, and was dominated by short-term and speculative behaviour. “It was the main conduit through which excessive credit availability has been transmitted and amplified into the UK housing market,” says Griffiths.

PricedOut wants buy-to-let to be regulated, but recent government intervention has favoured landlords. In the last budget, the chancellor unveiled a £560m tax giveaway on buy-to-let stamp duty bills.

Meanwhile tenants face an uphill struggle to save the large deposits needed to obtain a mortgage, as landlords push through rent rises much in excess of wage rises. LSL predicts that, at the current rate of increase, average monthly rents paid by tenants across Britain will hit £715 this time next year, and top £1,050 in London.

Property investment firm Assetz , one of the cheerleaders of the buy-to-let boom, said business had doubled over the past year and that landlords are fast replacing first-time buyers. Its chief executive, Stuart Law, told the industry magazine Mortgage Strategy this week that: “Lenders are making no secret of the fact that they would rather allocate the limited funds they do have to the lower-risk option of buy-to-let loans, with deposits of 25-40%, than first-time buyers loans with 90% LTVs . As a result, the buy-to-let sector is recovering at a remarkable rate.” Loans for landlords Buying to let Renting property First-time buyers Property Mortgages Housing market Patrick Collinson guardian.co.uk © Guardian News & Media Limited 2011 | Use of this content is subject to our Terms & Conditions | More Feeds

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Obviously, mortgages, large house deposits and jobs are currently hard to get, but if you really want a house or apartment of your own in the future, no matter how long it takes to get it, now is the time to think ahead and to put yourself in the best position to obtain a home mortgage when the economy improves.

Are Your Income and Expenditure Claims Realistic?

Do your homework before meeting with the bank or mortgage lender regarding how much monthly income you expect to receive in the future. If you intend to rent out a room in your new house, make sure you know what the current monthly rent is in your area. How much will you need to spend in order to make the house or room rentable? First time buyers are allowed to receive a maximum of 10,000 euros per year tax-free as income from renting out a room.

Can You Manage Money?

Nowadays the banks will want to know that you are a trustworthy person to loan money to. Keeping good records of your rent as well as your other major repayments such as car loans will reassure the bank that you can manage money.

Do You Need Money For Other Payments?

In the past the banks were happy to lend money for the fitting out of a house, as well as the mortgage needed to buy it. Today, if you are lucky enough to obtain mortgage approval, the banks will try to reduce the amount loaned to you as much as possible. It will help your mortgage application if you have no other major repayments to make, so defer any ideas you have about a new car or other big spend until after you receive your mortgage.

Do You Smoke?

Non smokers can make significant savings on the life assurance cover that will be needed in association with your mortgage.

Have You A Bad or Inaccurate Credit Rating?

Bad credit ratings can happen to good people. It may be due to an unpaid or lost bill, whilst it can also be due to inaccuracies in the credit report itself. It is better to find out your credit rating yourself, rather than waiting for a lender to inform you of your credit rating. This will give you an opportunity to address any inaccuracies and perhaps settle any outstanding debts. The more ‘blemishes’ you have on your credit report, the more likely it is that your lender will charge you a higher interest rate to protect themselves against a potentially bad loan.

Do You Expect Higher Interest Rates?

Are you assuming that you can repay your mortgage on the basis of current interest rates or have you calculated what it would cost based on interest rates that are two, three or four percent higher than current rates? Ask yourself if you could afford to pay a higher monthly payment without infringing on other payment commitments you may have.

This article is only intended as a basic general summary and you should always seek professional advice where necessary.

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The list below includes some of the questions that the banks will ask you when assessing your house mortgage application. The better you are able to answer these questions, the more chance you have of getting a mortgage and owning your own property.

Have You Accumulated Savings?

Mortgage lenders will want to make sure that you have a good record of savings. Regular contributions, for as long a period as possible into a savings or deposit account, will be looked on favourably by banks and mortgage lenders when they assess your application. So plan ahead, open an account now and get a regular savings plan going so that when mortgages become more widely available, you will have a good record to show the bank. Even if you can’t afford to save much every month, at least it will demonstrate to the bank a regular history of payments.

Are You A Loyal Customer?

There is some evidence that banks are more willing to lend to those people that have savings with them for a long period of time. So if you feel that mortgage rates will be equivalent from the major lenders in the future, open a savings or deposit account in the bank of your choice and become a regular saver, even if it is only a small amount every month.

Do You Have The Right Job?

The type of job you have is crucial. Mortgage lenders will only loan to those people in the most recession proof jobs, so a job in a semi state organization or the most secure private company will really help your house mortgage application. At the moment, any job is a good job, but if you want your own house in the years to come, you should consider the impact any future job will have on your chances of getting a mortgage.

Do You Have A Bad Credit Record?

Reduce your debt as much as possible and do all you can to avoid a bad credit history. It’s vital that you keep in touch with any company or lending institution that you owe money to. Don’t avoid their letters, negotiate a repayment schedule with them, even if it is for a small amount each month. Do all you can to avoid being listed on the wrong page of a credit agencies records.

Have You The Right Friends?

If you think that you will never be able to afford a mortgage on your own, or that your job is not secure enough, consider a joint application with a friend and don’t forget the conditions above will apply to them too, so let them know what the banks will expect from them.

This article is only intended as a basic general summary and you should always seek professional advice where necessary.

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Types of Mortgages

There are two common choices of mortgages available for refinancing, together with a third concept. Choosing the appropriate type of mortgage for the homeowner’s circumstances is the largest decision that homeowners confront.

The first common option is the fixed rate mortgage. The interest rate remains permanent throughout the duration of the loan. This is beneficial for homeowners who are able to negotiate a low interest rate.

The second common option is an adjustable rate mortgage. The interest rate will fluctuate through the term of the loan. The fluctuations are dependent on indexes, such as the prime. The rate will rise and fall in accordance with the index’s increases and decreases. This type of mortgage is not as secure as a fixed rate mortgage. Homeowners with questionable credit rates are often offered this product.

There is a limited protection built into adjustable rate mortgages. A clause incorporated into the loan may limit how many percentage points the rate of interest is permitted to increase during a specified amount of time. This protects the homeowner from significantly higher mortgage payments due to marked interest rates hikes.

The third concept is the hybrid mortgage. This mortgage has combined elements of the fixed rate mortgage and adjustable rate mortgage. The first specified portion of the mortgage would come with a fixed interest rate, with the remainder of mortgage having an adjustable interest rate. Hybrid mortgages usually have a lower fixed interest rate than the standard fixed rate mortgage. Lenders have introduced this concept to solicit customers.

Closing Costs

Homeowners need to calculate the closing costs attached to a mortgage before making a commitment to refinancing. Closing costs can add up to a substantial amount. Typical closing costs including application, appraisal and loan origination fees, together with other miscellaneous charges. These costs need to be compared to the savings the homeowner expects to receive from refinancing.

Overall Savings

Overall savings are an aspect the homeowner needs to thoroughly calculate. If there are no overall savings, refinancing may not be advantageous. The goal of most homeowners in refinancing is to realize some savings at the end of the day. There are some homeowners, however, who are concerned with lowering their monthly payments. If their primary consideration is not focused on overall savings, then refinancing may be advisable.

Overall savings are dependent on a number of factors. The interest rate of the old mortgage is compared with the rate of the new mortgage. Also, the amount of the existing mortgage is relevant. How long the homeowner plans to own the home has an effect.

It should not be assumed that the money saved by reducing a previous interest rate to a more favorable one is the sum total of savings. Closing costs must be deducted from the interest savings. If the result of this subtraction is negative, refinancing may not be worthwhile. Alternatively, if the end result is positive, the homeowner will have a net overall savings.

This information should assist the homeowner in deciding if refinancing is a viable option.

Find out the actual advantages of refinancing as well as when is refinancing not advisable from the experts when you visit http://www.mortgagerefinanceguidelines.com, the premier resources on steps to refinancing

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The best type of manufactured home financing to get is a FHA Manufactured Home Loan. This type of loan opens up a lot of opportunities for people who want to buy a manufactured home but don’t have a lot of money to complete the transaction.  You can get more information on FHA Manufactured Home Loans by clicking on the links at the bottom of this article.

Most people who want to buy a manufactured home may want to get a Title 1 loan.

A Title 1 FHA Manufactured Home Loan is a great type of loan because they are not government or grant based. They also have requirements where they have to give the home owner a fixed rate for 20 years. FHA does not really loan money. By insuring loans they help you find lenders that are qualified to meet your needs. This type of loan can be used to buy a lot to place a manufactured home or a manufactured home and lot combination. The one requirement that FHA insists on is that the borrower be planning to make the home their permanent residence.

With an FHA Manufactured Home Financing you can borrow from $69,678 for just a manufactured home up to $92,904 for a home and lot combination. This is a substantial amount of money for people to work with, while looking for the right home. If your home is new they also require a 1 year warranty, which most new manufactured homes have anyway. These loans go up to 25 years for people looking to buy a home. In order to get an FHA loan you have to be an eligible buyer but most of the requirements are required by any lender.

If you are looking at manufactured homes and you want to get a loan, the best type of loan is a FHA Manufactured Home Loan. These loans are pretty workable for any buyer and they also are not too complicated to get. They do have some requirements but most of them are very reasonable for anyone looking to buy any type of home. You do have to have the money to make your payments and prove your income. The borrower has to make the home their permanent residence and they have to set up the home under correct guidelines. All of these requirements are reasonable for any future home owner.

While most conventional loan lenders will not loan money for manufactured home financing you can still get a FHA Manufactured Home Loan even for existing homes.

Click here for more free advice about FHA Manufactured Home Loan where you get much more information on the different types of FHA loans.

Learn more about buying HUD Homes For Sale with a FHA Loan click Streamlined FHA 203K Loan.

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