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FT: BTL lending to triple, in just 4 years...
Comments
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HAMISH_MCTAVISH wrote: »Rents are already rising.
Nominal rents are rising. Real (inflation adjusted) rents are falling.
Falling real prices are only a recipe for a successful business if you have falling input prices...0 -
If only you had the money and/or bottle to go for it McTittish.
You could make a killing.
Where have you been loser?
He already did.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
PS BTL lending was £44,600,000,000 in 2007 and £27,200,000,000 in 2008.
"Buy-to-let lending to return to levels seen at the height of credit crisis within 6 years"
"Buy-to-let lending to recover to more than half what it was in 2007 by end of 2014"
I can see why the FT stuck with the headline it did. It's disingenuous to say that things are roaring away if you compare with the past couple of years. Of course things are better than 2008 or 2009 - the financial sector was at death's door and needed injections of billions or even (more likely IMO) trillions of dollars just to stay solvent!0 -
HAMISH_MCTAVISH wrote: »Interesting.....
This crash certainly does seem to have backfired badly on the housing bears.....
Really :rotfl:
http://www.youtube.com/watch?v=OaiSHcHM0PA
Where does it come from, its gone. There is none left for mortgages in 2011 when the BOE funding runs out.
That means higher bank rates to encourage savings and thus higher lending rates and lower sums lent.
Hamish "Show me the money, Show me the money"
Say "I love house price bears"
Come on Hamish shout it:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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In a related FT story (have posted the full story since you need to subscribe):
http://www.ft.com/cms/s/2/981ec29a-6749-11df-a932-00144feab49a.html
New lenders enter buy-to-let market
The buy-to-let sector has received a boost this week with the launch of two new lenders into the market.
Precise Mortgages is backed by US-based private equity firm Elliott Associates and will offer loans to buy-to-let property investors from today.
The mortgages will be available through a selected panel of intermediaries including L&G Mortgage Club, Mortgage Intelligence and Mortgage Next.
This comes as Aldermore Bank, owned by venture capital company Anacap Financial, started lending on residential and buy-to-let business. The new lender will also distribute its products solely through a panel of intermediaries, including L&G Mortgage Club, Mortgages for Business and Mortgage Intelligence.
“The launch of two new buy-to-let lenders just a week after The Mortgage Works increased its loan-to-value on buy-to-let loans to 80 per cent is a very positive sign for the buy-to-let market,” said David Whittaker of Mortgages for Business, the mortgage broker.
The buy-to-let market has been badly hit by the credit crunch with the number of products plummeting from 3,662 at the peak of the market in August 2007 to just 304 last week.
But a recent report from Datamonitor forecasted that gross buy-to-let advances will rise from £8.5bn last year to £25.6bn in 2014 on the back of an expected increase in demand for private rented accommodation.
Precise Mortgages has launched three products, with rates starting at 5.79 per cent - libor plus 5.15 per cent - for a two-year tracker. The loan has a 2.5 per cent arrangement fee and is available up to 75 per cent loan-to-value.
Aldermore Bank has more competitive pricing, according to Whittaker. It is targeting experienced landlords and has a choice of two-year discounts from 4.98 per cent and three and five-year fixed-rates starting from 5.78 per cent.
But mortgage brokers warn that the deals are unlikely to be attractive to a large number of landlords due to the restrictive criteria requirements. Neither will lend on new builds and they only allow a maximum of one property per person with them.
According to Nigel Bedford of Largemortgageloans.com, both lenders require that the arrangement fees are deducted from the advance rather than added to it as is usual. “This means that a larger deposit will be needed to cover this amount,” he said.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
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IveSeenTheLight wrote: »I'm wondering, if the funding is not there, why are mortgage rates becoming more competative and more higher LTV products being available?
How do you know they are becoming more competitive? Headline rates grab the headlines but thats marketing. How much money is available at these rates? Banks are slowly edging margins higher across their entire lending books. Nationwide's loading of 1.5% for consent to let suggests its not getting cheaper irrespective of Libor or BOE base..0 -
Thrugelmir wrote: »But the same old chesnut arises. Where's the funding going to come from:-
As at the end of 2007, top 10 lenders by balance outstanding were:
1. Mortgage Express ( B&B)
2. BM Solutions (HBOS)
3. Paragon Group
4. Bristol & west (bank of Ireland)
5. C & G (lloyds)
6. Northern Rock
7. Capital Home Loans( Irish Life & Permanent)
8. Mortgage Works ( Nationwide)
9. Mortgage Business (HBOS)
10. Barclays - Woolwich
Included in the Top Ten Gross lenders for advances in 2007 were also Alliance & Leicester, RBS and Abbey.
Demand might be there but the funding isn't.
are we now saying that 2010 funding is less or more than the 2010 funding demand?0
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