Stress for some as Barclays applies buy to let mortgage rate change

With the recent industry congratulations on the success of buy to let mortgages, it is not surprising that Barclays has announced to change its buy to let mortgages against a higher rate of 5.79% albeit just to stress test.

A spokesperson from the bank commented they are introducing a new single affordability rate (which will come into effect on Monday 19 May) for all buy-to-let transactions to “ensure consistency across all products”.

The reasoning behind the decision is apparently to ensure customers can afford their mortgage payments and to withstand whatever may happen with the interest rates in the future.

Of course, investors with The House Crowd needn’t worry about stresses such as these that the banks bring on for landlords and property investors. With our unique crowdfunding model, we make investing in property simple – no banks, no mortgages; the smarter way to invest in property. So why not join our investors and avoid the stresses that banks cause!

The full article can be found here.

Could a supermarket become a supermortgage provider?

Have we just seen another example of the nation’s disillusionment with big banks with the launch of leading supermarket, Tesco’s, own variety of mortgages? We think so, and we also think it represents a growing rebellion against those banks by large and small institutions, as well as the private individual.

A couple of weeks ago we talked about the launch of the Bank of Dave, and how disillusionment with high street banking can breed entrepreneurialism and innovation. And at the other end of the scale, this move could represent a similar frustration, this time by one of the world’s largest organisations which has spotted a large gap in a somewhat under crowded and under delivering market.

While Tesco’s selection of mortgages and rates are neither market leading or particularly newsworthy, they do offer those of us who are disenchanted with the high street banks, an alternative. However, while we’re sure this will give the sector a much needed shake up, it’ll take a lot to convince us that this is not just another ‘big bank’ clone vying for a share of an already frustrated market.

We will of course be keeping a keen eye on Tesco’s progress, and whether it can convert its success in the fast moving consumer goods market to a success in the housing market.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.http://thehousecrowd.com/thehousecrowd//how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.http://thehousecrowd.com/thehousecrowd//about/our-manifesto/). If you’ve read enough and want to invest now, visit www.http://thehousecrowd.com/thehousecrowd//invest-in-property/).

Buy to let mortgage news

There are only 20% of the number of buy-to-let mortgage products available compared with the number on offer five years ago. There are now 411 buy-to-let deals compared with 2,265 just five years ago, according to a report by Moneyfacts.

Rachel Springall, spokesperson for Business Moneyfacts, said: “As interest rates have fallen for buy-to-let deals, product availability and therefore choice has also dropped a staggering 82 per cent in five years.”

Of course whilst we don’t like to see landlords being unable to build their property portfolio, the reason so few buy-to-let mortgages are available is another reason why our investors find The House Crowd model with no need for banks or mortgages so attractive.

Crowdfunding Here To Stay

As we’ve previously stated, the term, ‘crowdfunding’ is currently all over the media, and as the Telegraph’s own Monty Munford, rightly observed in his article this week, ‘Crowdfunding really is hot’ and he couldn’t be closer to the truth!

According to www.crowdfunding.org there will be more than 530 crowdfunding services by the end of 2012, up 60 per cent on 2011 with 44 in the UK alone. Founded in the States, crowdfunding platform Kickstarter has quickly been heralded the bees knees of crowdfunding, and has been a huge success. Simply put, if a company needs to raise money for a project then investors can use this service to back them by pledging money, from small to large amounts.

As a property investment group based on the crowdfunding model, we are great supporters of the crowdfunding movement and we hope more and more companies take advantage of the growing number of crowdfunding services available today – cutting out the traditional money men and instead raising money via peer-to-peer lending, what could be better! In an environment where it is becoming harder and harder to borrow money from the banks, which are nowadays not particularly serving the people they were created to assist, crowdfunding can only grow from strength to strength.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit http://thehousecrowd.com/thehousecrowd/how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit http://thehousecrowd.com/thehousecrowd/about/our-manifesto/). If you’ve read enough and want to invest now, visit http://thehousecrowd.com/thehousecrowd/invest-in-property/).

 

Crowdfunding is sweeping the nation!

It appears The House Crowd has started a trend (well we like to think we have!) as there isn’t a week that goes by without the term ‘crowdfunding’ appearing in the media.

This week, it was great to read that Stainless Games, an Isle of Wight-based video games developer, had successfully secured cash on crowdfunding site Kickstarter, to finance a new edition of Carmageddon.

Fans of the controversial game have pledged more than £255,000 to the company, however, unlike at The House Crowd supporters do not receive a share of any profits, but instead are offered a range of scaled incentives to commit more money – including a free copy of the game. We think this method of pooling money together is a great alternative to the traditional model of funding which usually comes via large investors or publishers, as it helps gamers feel involved in the process.

As a property investment group based on the crowdfunding model, we are great supporters of the crowdfunding movement and we hope more and more companies take advantage of the crowdfunding phenomena that is sweeping the nation.  With the banks loathe to lend to businesses and individuals, not to mention the poor returns on savings from them, crowdfunding is going to be seen as the way forward for a number of businesses. So why not hop on the bandwagon and get involved too by joining us!

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit http://thehousecrowd.com/thehousecrowd/how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit http://thehousecrowd.com/thehousecrowd/about/our-manifesto/). If you’ve read enough and want to invest now, visit http://thehousecrowd.com/thehousecrowd/invest-in-property/).

Let Down By Buy-To-Let Lenders

Once again, British banks are being criticised; this time for letting down property investors who have successfully bid at residential property auctions. It has been reported that these investors, many of whom are buy-to-let, are left scrambling to source other forms of finance as their auction deal often leaves them legally bound to complete within strict timeframes, usually just 28 days.

So where does this leave these property investors? With very little choice and often relying on short-term finance.

This is a property investment strategy we would certainly not recommend! Which is probably why we’ve had so much interest since our launch, from those wanting to invest in property while avoiding issues such as these.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit http://thehousecrowd.com/thehousecrowd/how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their property investments (for more information about us, visit http://thehousecrowd.com/thehousecrowd/about/our-manifesto/). If you’ve read enough and want to invest now, visit http://thehousecrowd.com/thehousecrowd/invest-in-property/).