Bank of China Mortgages

Crash_Over

From The Times:

Bank of China has begun offering mortgages to British borrowers, who are finding it difficult to get loans from leading UK lenders. The world’s third-largest bank is lending at lower rates than many of the deals available from more established UK lenders. It has previously focused on lending to the Chinese community within the UK.

With rates from 2.5 per cent over base, it is targeting homeowners and buy-to-let landlords who are struggling to get credit. It is marketing deals via four brokers, including Savills and Legal & General Mortgage Club.

Bank of China’s approach will differ in several ways from its British peers. It will insist in meeting each borrower face-to-face before deciding to offer a loan, and will fund them from its own capital reserves, a more conservative approach than that of many UK lenders in the years of the housing boom.

Those clever chinese clearly believe UK property represents good value and are are confident in our ability to repay.

:j

mbga9pgf

Morning Hamish!

Crash_Over

mbga9pgf wrote: »

Morning Hamish!

Another one who thinks I'm Hamish. :mad:

Dan:_4

Crash_Over wrote: »

Another one who thinks I'm Hamish. :mad:

Ignore him. He is very bitter lately, as it looks less and less likely that house prices will fall much further.

mbga9pgf

Wait and see!

nearlynew

.....................A spokesperson for Bank of China said "if homeowners and BTL landlords who are struggling to get credit think our entering the market will push up prices they are going to be very disappointed".

Crash_Over

nearlynew wrote: »

.....................A spokesperson for Bank of China said "if homeowners and BTL landlords who are struggling to get credit think our entering the market will push up prices they are going to be very disappointed".

And they are right. But every new lender helps to stabilise the market with additional funds. Mortgages are currently rationed and lenders with limited funds continue to raise rates.

This makes mortgages very profitable for lenders, however as with any product that begins to offer substantial profits, new entrants are soon attracted into the market place.

I wonder who'll be next.

Dan:_4

nearlynew wrote: »

.....................A spokesperson for Bank of China said "if homeowners and BTL landlords who are struggling to get credit think our entering the market will push up prices they are going to be very disappointed".

What has 'pushing prices up' got to do with anything????

Thrugelmir

Crash_Over wrote: »

From The Times:

Those clever chinese clearly believe UK property represents good value and are are confident in our ability to repay.

:j

They will cherry pick the best quality business. Leaving the British taxpayer with all the sub prime mortgage debt in the system ( via our holding in the UK banks).

Expect their lending criteria to be tight.

I understand that one policy they have is to meet all borrowers personally. :eek:

Dan:_4

Thrugelmir wrote: »

They will cherry pick the best quality business. Leaving the British taxpayer with all the sub prime mortgage debt in the system ( via our holding in the UK banks).

Expect their lending criteria to be tight.

I understand that one policy they have is to meet all borrowers personally. :eek:

UK lending criteria is tight.

Edale

Crash_Over wrote: »

From The Times:

Those clever chinese clearly believe UK property represents good value and are are confident in our ability to repay.

:j

I don't think it is anything to do with property representing good value, more likely the state of the uk mortgage market means the rates they can charge gives them a fantastic return on their money.