Buy-to-let mortgages evolved after new legislation within The Housing Act gave landlords more power to evict tenants who were not keeping up with their rent. In September 1996, the Association of Residential Letting Agents (ARLA) launched these loans via a panel of lenders, and hence the buy-to-let mortgage arrived in the UK property marketplace.
Relaxation of criteria reflects the realisation that buy-to-let is not as risky as lenders first thought. There are now around 70 lenders offering the buy-to-let product however albeit that around 50 per cent of all buy to let loans are written by the 6 members of the ARLA panel:Paragon, GMAC, Mortgage Express, Birmingham Midshires, NatWest and The Mortgage Business.
A risk analysis of buy-to-let versus residential shows residential loans have a higher risk profile. Latest figures from the Council of Mortgage Lenders showed that 0.68 per cent of buy-to-let mortgages had been in arrears for more than three months, compared with 0.97 per cent of normal loans.
High house prices and a growing population have meant that more people are now renting for longer, fuelling the demand for rental property. Amateur and novice landlords alike who have enjoyed success after dipping their toe into the water with one or two properties now have the confidence to further increase their portfolios.
Over the past decade the sector has enjoyed exceptional growth, to now represent approx. 8 per cent of total housing stock in the UK. The first mortgage deals were inflexible, commercial style products with high interest rates, up to 4 per cent over Bank of England base rate, and low loan to values up to a maximum of 75 per cent. Historically, rental cover had to equal 130 per cent of the mortgage to protect both the lender and the landlord against voids and the higher risk.
Landlords now benefit from an average loan to value of 85 per cent, and rental cover now averaging 125 per cent of the mortgage payment. Although lending is available to 90 per cent and rental cover at 100 per cent.
Recent research revealed that 83 per cent of landlords plan to increase or maintain their portfolios in the next six months, showing that the appetite for investment remains. The average property portfolio has increased from three per landlord in 1996 to seven this year.
Buy-to-let lending has grown from £3.1 billion in 1999 to £24.5 billion during 2005 and the market alone is worth over £73 billion and still growing. The fragility of world stock markets and the pensions crisis has ensured that more and more investors are turning to bricks and mortar to secure their future.
Whilst the increasing student, single person and migrant population will continue to support the rental sector, growth in rented households is predicted to be around 3 per cent over the next ten years. However the downside is for first time buyers, who are often vying for similar properties as buy-to-let investors, despite government assurances of support the growth in the buy to let market could well herald the decline of the first-time buyer.
With rising property prices and diminishing rental yields First Mortgage Trust have designed a buy-to-let rental calculator that takes some of the guesswork out of the initial process.
Happy Birthday To Boyfriend
Happy Birthday and welcome back to an old friend, the 45 rpm record officially turned 60 years old on March 31. British trade journals are reporting that single song 45rpm records are now outselling their CD counterparts and many American bands are now releasing music via this historic audio medium.
The 45rpm record was initially introduced in 1949 by RCA Records as a smaller, more durable replacement for the heavy 78 shellac-based records of the time. The 45 was created by RCA as a competitive move against one their rival record companies, Columbia, which had just introduced the new microgroove 33 1/3 rpm LP. The number 45 came from taking 78 and subtracting Columbia's new 33 to equal the 45. Record companies and consumers alike faced an uncertain future as to which format would survive the 78rpm or the 45rpm; in what was known as the “War of the Speeds.” In 1949 Capitol and Decca started issuing the new LP format and RCA relented and issued its first LP in January 1950. But the 45 rpm was gaining in popularity and Columbia issued its first 45s in February 1951. Soon other record companies saw the mass consumer appeal the new format allowed and by 1954 more than 200 million 45s had been sold.
So On March 31, 1949, RCA Victor released "Texarkana Baby" b/w "Bouquet of Roses" by Eddy Arnold. The first 45 to hit the Billboard charts was "A -- You're Adorable" by Perry Como, listed on the charts on May 7, 1949. The next week, the year's biggest hit appeared on the Billboard charts -- "Riders In The Sky (A Cowboy Legend)” by Vaughn Monroe. The first 45rpm records were monaural and as stereo sound became more prevalent and popular in the 1960s, almost all 45rpm records were manufactured in stereo.
The historical and commercial significance of the 45rpm record has varied over time, the technological developments in recorded music and according to the audience of the particular artists and musical genres. In general, 45rpm records were more important to the music acts who sold music to the younger audiences (mostly teenagers) who tend to have limited financial resources and shorter attention spans. That said, the golden age for the 45 was in the 1950s and 1960s in early development of rock music. They were affordable and allowed artists the freedom of releasing a single song as opposed to a whole LP. Conversely, some singles helped to launch the sales of the albums that the musicians were promoting.
The length of the songs also evolved. In the 1950s, it was common for songs to be anywhere from two to two and a half minutes long and in the 1960s; the three minute single became the norm. This length was very convenient and fit the AM radio format very well. Millions of demo records were sent out to radio stations with specific instructions as to which song was supposed to be the ‘hit single,' although there were some DJs that played the ‘B' sides and those songs became hits. Elvis Presley was one of the first artists to release the ‘double-sided single', meaning that both songs would ultimately end up on the charts. The Beatles followed suit and were also one of the first recording artists to push the envelope, so to speak and commonly had songs over the three-minute norm. In fact, there are some singles that had to be edited by radio stations and shortened to fit their particular formats. Don McLean's 1972 hit “American Pie” is an example, the single was split up into two parts on the 45. The Beatles broke new ground in 1968 with their over seven minute epic “Hey Jude.”
The sales of the 45s were recorded on the record charts in most countries in a Top 40 format and these charts were often published in magazines (Billboard), television shows (American Bandstand) and radio programs often had the Top 40 countdown shows (Casey Kasem).
Nowadays, they still manufacture 45 rpm records, but on a much smaller scale than decades ago. Indie bands, r&b artists and punk bands love the format; it makes the music affordable for their target audience and, after all these years, are still highly sought after by collectors. Happy Birthday to an old friend, here's for many more!
Sales of 45rpm Records:
Over 11 million copies
“Candle in the Wind 1997/Something About the Way You Look Tonight” - Elton John
Over 8 million copies
“We Are the World” - USA for Africa
Over 4 million copies
“Hey Jude” - The Beatles
“Hound Dog"/"Don't Be Cruel" - Elvis Presley
"I Will Always Love You" - Whitney Houston
"Low" - Flo Rida featuring T-Pain
"Macarena (Bayside Boys Mix)" - Los Del Rio
"Whoomp! (There It Is)" - Tag Team
Over 3 million copies
"Apologize" - Timbaland presents OneRepublic
"Disturbia" - Rihanna
"(Everything I Do) I Do It for You" - Bryan Adams
"Eye of the Tiger" - Survivor
"Gangsta's Paradise" - Coolio featuring L.V.
"Hot N Cold" - Katy Perry
"How Do I Live" - LeAnn Rimes
"I Kissed a Girl" - Katy Perry
"I'll Be Missing You" - Puff Daddy & Faith Evans featuring 112
"I'm Yours" - Jason Mraz
"Just Dance" - Lady Gaga featuring Colby O'Donis
"Live Your Life" - T.I. featuring Rihanna
"Love Me Tender/Any Way You Want Me" - Elvis Presley
Both Martyn Witt & Robert Benson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Martyn Witt has sinced written about articles on various topics from Mortgage, Real Estate and Mortgage. is a premier resource for personal finance information along with an extensive collection of mortgage related calculators including the recently des. Martyn Witt's top article generates over 1600 views. to your Favourites.
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