Nine in 10 buy-to-let mortgage deals have disappeared

IveSeenTheLight

Cannon_Fodder wrote: »

I get where you are coming from. I don't understand why there were so MANY products in the first place.

Presumably brochures had to be printed, different KFIs produced, computer systems added to, leaflet mailshots - both to brokers and customers, etc etc

All that cost money, so there should (unless the beancounters are doing their usual poor maths) have been a return in mind.

Just for some product differentiation, or because there were material differences?

If the latter, then reducing the number of products will reduce the options open to any individual, perhaps resulting in a worse rate, fee, ERC or whatever.

Very True,
How often when you sit down with an independent financial adviser to discuss products, to you see hundreds of options without even going into detail on all the products because most were not competative.

My interepretation on it is that mostly they were sorted by varying interest rates and the higher ones were discounted for myself.
Of course, if your credit rating is lower, or lower deposit etc, then the options available may be less and restricted to those options with higher interest or fees, meaning options that are not competative for one, may be the best available option for others.

I would presume the lessing of available mortgage would only affect those with the worst credit rating or the lowest of deposits.
It wouldn't harm those with a bit of savings behind them but would for those with not so much / nothing

RomansProperties

fatpig wrote: »

Great news. The one in ten BTL deals left should disappear too. It's a horrible sleazy business

Just out of interest what do you do for a living??
And what are you reasons for it being a SLEAZY business?

baby_boomer

FT - Landlords struggle to find loans

"....buy-to-let mortgage rates have barely dropped in recent months. Woolwich, for example, is offering three- and five-year fixed rates of 6.39 per cent.

Cheaper two-year fixed rates of 4.5-5 per cent are available from The Mortgage Works and BM Solutions, but these have fees of up to 3.5 per cent of the loan.

Also, at the end of the fixed period, these deals can switch to a high margin over base rate – 3 per cent, for example – which could feel expensive in two years’ time....."

RomansProperties

Its not looking good for availability of products at the moment.

baby_boomer

Incredibly the FT suggests that the lack of finance meanse that housing "bargains" are being missed.

FT - Tough terms on buy-to-let see bargains go begging function

"Investors are missing out on property bargains because the cost of buy-to-let mortgages has barely fallen in the past year....."

Er, :idea: could it be that the error was that buy-to-let mortgages had become as cheap as home loans and that we have now just gone back to normal?

And could it be that the lack of finance generally will mean that these "bargains" have further to fall.

Generali

JonnyBravo wrote: »

:rotfl:

I think you might be waiting a while. The current lot are a bit too right wing for that and the next lot aren't well known for their left wing views either.

:cool:

Well IMO it's not more left wing than the current regulations. If you accept that ther Government has a role in setting standard contract terms in the rental market then security of tenure is (or at least could be) a part of that.

If you introduce security of tenure you need to then write in what happens about rent reviews as there's no point in having security of tenure if the LL can price you out. Similarly there's no point in pricing LLs out of the market.

chucky

RomansProperties wrote: »

Its not looking good for availability of products at the moment.

it's been like this for a good six months. the monthly dropping of rates has also put lenders in a position that they're continuosly updating products. some have given up on this as they could be caught with a non-profitable rate.

once the volatility is out of the market, more lenders will come in with more products.

Generali

chucky wrote: »

it's been like this for a good six months. the monthly dropping of rates has also put lenders in a position that they're continuosly updating products. some have given up on this as they could be caught with a non-profitable rate.

once the volatility is out of the market, more lenders will come in with more products.

Banks haven't wanted to lend so much against property for a while now. It makes little difference from their point of view if it's BTL or OO.

chucky

Generali wrote: »

Banks haven't wanted to lend so much against property for a while now. It makes little difference from their point of view if it's BTL or OO.

agree that the availablity of funds is the main issue.

i would have thought that the rate drops and potential for more would have not been appealing for banks to go and get funds if their own lending rate is going to be 1% less next month.

i know you're going to say that their lending is non-existent
if you do are the money markets that bad?

RomansProperties

chucky wrote: »

once the volatility is out of the market, more lenders will come in with more products.

Hopefully sensibly priced products with reasonable fees
Seen some with 3% fees
I think the Deposits need to be around 25% to make the market safe.
I also think the lenders should look at the property in terms of generating a positive cash flow rather than 120% rent cover as this will never allow for all the associated costs of letting properties