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Lenders want out of BTL - what does that tell you?

carolt
carolt Posts: 8,531 Forumite
in Debate House Prices & the Economy
http://www.timesonline.co.uk/tol/money/property_and_mortgages/article5516349.ece

Mortgage Express encourages customers to pay off loans

Buy-to-let lender will waive early repayment charges for five months

Mortgage Express, the buy-to-let arm of Bradford & Bingley, announced today it is waiving early repayment charges for customers wishing to pay off their mortgage between February and June this year.

Mortgage Express stopped lending in September last year and says it may not be able to offer competitive deals for existing customers. Early repayment charges are typically 1 or 2 per cent of the mortgage.
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Comments

  • longtimelurker_2
    longtimelurker_2 Posts: 119 Forumite
    Someone has a favourite topic...

    (Am I late in realising this?)
  • botchjob
    botchjob Posts: 269 Forumite
    IT TELLS US THE WORLD IS GOING TO END!!!

    So let's all go and have a bit of a sit down and a nice cup of tea.
  • Gorgeous_George
    Gorgeous_George Posts: 7,964 Forumite
    Part of the Furniture Combo Breaker
    icon1.gifLenders want out of BTL - what does that tell you?

    It tells me that some lenders failed to consider the risks properly and have put their companies in danger as a result.

    It was all too easy taking the stand that repossession would de-risk all loans. Clearly, in a rapidly falling market, repossession may not recover all of the losses. Chasing a person for one failed mortgage is one thing but a BTL LL with numerous mortgages is quite another. How banks could lend somebody more money that they will ever earn is quite shocking.

    Some mortgages were fraudulent e.g., some of the luxury phlats sold through Inside Track (and there will be many other examples). The average BTLer who based their purchase on sound financial footings is not the cause of the problem.

    BTLers entering the market in the next few years will be less risk due to the normalisation to trend of house prices. Banks should be encouraging the repayment of high LTV/high risk mortgages but they should also be seeking new, low risk customers as this will provide a solid customer base to support the bank in future years.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Some when has one lender multipled into lenders?

    As a shareholder of Bradford & Bingley (only post nationalisation) , I for one will glad to see Mortgage Express close down their mortgage book.
  • carolt
    carolt Posts: 8,531 Forumite
    longtimelurker wrote: »
    Someone has a favourite topic...

    (Am I late in realising this?)

    Oooh, but you're sharp... :D
  • RomansProperties
    RomansProperties Posts: 191 Forumite
    I have a buytolet mortgage with Mortgage Express thats 0.34% above base rate, so I think I will stick with them as that deal cant be matched.
    Its at about 50% LTV so hopefully they wont be too bothered about keeping that one.
    Not sure if it has dropped to 1.84% yet, the last letter was 2.34%.
  • Ian_Griffiths_Halifax
    Ian_Griffiths_Halifax Posts: 1,690 Forumite
    RomansProperties wrote: »
    I have a buytolet mortgage with Mortgage Express thats 0.34% above base rate, so I think I will stick with them as that deal cant be matched.
    Its at about 50% LTV so hopefully they wont be too bothered about keeping that one.
    Not sure if it has dropped to 1.84% yet, the last letter was 2.34%.

    Awww come on, play fair! They want rid of you and will drop any penalties, and you won't take up some other lenders BBR+3.5%. That's just selfish.
    I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.
  • mickholloway
    mickholloway Posts: 5 Forumite
    Just spoken to Mortgage Express as my fixed term is coming to an end, The best BTL Mortgage London and Country could find me was 5.45%, up from my 3 Year fixed of 5.09% with a fee of 2.5% (£2500 ish). L&C told me Mortgage express not taking on any renewals or new business *****THIS IS NOT TRUE***** They have just offered me a new fixed term of 2 years at 3.99% no fees/costs. That saves me the £2500 plus 1.46% on what I could have been paying, plus if I decide to settle/end the mortgage in the next 2 years there is no cost. Not a long period I know but happy---- you bet I am:)
    Mick
    :money:
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    RomansProperties wrote: »
    I have a buytolet mortgage with Mortgage Express thats 0.34% above base rate, so I think I will stick with them as that deal cant be matched.
    .

    Is yours a lifetime tracker, or a fixed-term one?
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    botchjob wrote: »
    So let's all go and have a bit of a sit down and a nice cup of tea.

    Way ahead of you, I have my mug here!
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
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