Cheeky Friday News

Graham_Devon

Buy-to-let borrowers could face critical financial problems if interest rates rise, warns specialist lender Paragon.

It has also warned that some BTL borrowers are not receiving proper advice from lenders or brokers.

Currently, lenders assess a BTL loan based on whether rental income will cover mortgage interest payments by at least 125%.

However, John Heron, managing director of Paragon Mortgages, said that many lenders are only looking at current mortgage interest rates, at an assumed 5%, and not taking into account possible rises in the future. Some are assuming the current mortgage interest rate as low as 3%.

The warning echoes that of Paul Fisher, the Bank of England’s executive director of markets, who said last month that a ‘normalised’ bank rate of 5% would return one day, and this needed to be in people’s mindsets.

If this were to happen, then most BTL borrowers would be paying 8% or 9% on their mortgages, leaving many unable to cover their mortgage payments with rental income.

John Heron, MD of Paragon Mortgages, said: “There are more lenders finding their way into the amateur end of the buy-to-let market, attracted by the strong credit quality and high margins.
“Some of these lenders have little or no experience in buy-to-let and are simply delivering ‘me too’ criteria.

“This is an area that warrants prudence and caution, and not competition as some lenders would appear to think.”

http://news.rla.org.uk/index.php/archives/961

Steps back

michaels

Then of course there is the issue that those on 2 or3 year special deals expecting to escape a 'revert to SVR' by remortgaging when the deal end may find that the rental coverage (or LTV if there are price falls) prevents them re-mortgaging.

JonnyBravo

Advice from someone running Paragon?

Erm no thanks. Their track record in looking after themselves isn't great but now they're keen to share their wisdom! :rotfl:

Graham_Devon

JonnyBravo wrote: »

Advice from someone running Paragon?

Erm no thanks. Their track record in looking after themselves isn't great but now they're keen to share their wisdom! :rotfl:

Off topic....dunno about you, but Ortac has ripped me a new hole

As well as every other god damn share I have. Bit of a bloodbath this week. Learnt though, and holding on for the ride....nervously!

1984ReturnsForReal_2

How the mighty have fallen for the Cheeky Girls. Celebrity Gossip are shocked to report that Cheeky Girl Gabriela Irimia was arrested for shoplifting in a Sainsbury store in Alderley Edge, Cheshire. The Cheeky Girls career has hit rock bottom but fans will be shocked to learn how bad things have got for one half of the Cheeky Girls who was dragged off by security staff in Sainsbury’s for shoplifting.

.......................

[Deleted User]

1984ReturnsForReal wrote: »

.......................

Why would a girl that good looking turn to shoplifting? Lets face it there aren't many blokes that wouldn't bail her out if she took an interest in them.

Gabriela if your listening, VERY desperate and have lowered your standards to almost nothing, please get in touch ;-)

JonnyBravo

Graham_Devon wrote: »

Off topic....dunno about you, but Ortac has ripped me a new hole

As well as every other god damn share I have. Bit of a bloodbath this week. Learnt though, and holding on for the ride....nervously!

oh jeez, sorry to hear that. No, I got out of Ortac in the first hour on Monday. Finished 89% up on it. (I did get in in October when prices were much lower). Seems to have steadied today at least. An insignificant amount compared to EMED though.
EMED has taken a bit of a battering recently. 25% down from its highs but as I've been in that ages my av is well under 10p so sitting it out til we get AS. New press today suggests by "end of March".

Graham_Devon

JonnyBravo wrote: »

oh jeez, sorry to hear that. No, I got out of Ortac in the first hour on Monday. Finished 89% up on it. (I did get in in October when prices were much lower). Seems to have steadied today at least. An insignificant amount compared to EMED though.
EMED has taken a bit of a battering recently. 25% down from its highs but as I've been in that ages my av is well under 10p so sitting it out til we get AS. New press today suggests by "end of March".

I could have got out at the same time, but unfortunately was caught up. Upon first appearances the RNS was good, so left it, expecting good things later when I logged in.

By the time I logged in, I had little profit after a 29% profit. So thought it would sort itself out. Wow. 50% decline.

Good lesson though. I needed it. Still have them and average is 2.32p so I suppose I'll just have to leave them for 6-12 months and see where that goes.

RRR had 2 RNS released, bang, down it goes. The COE even emailed all shareholders telling them is wasn't bad, but sentiment in mining seems to be so bad at the moment everyones selling out for the slightest reason. Emed I'm still 18% up on (was nearly 70% at one point). Infact, its the only thing I'm up on.

AMC, while I wait forever for this next rubber stamp which has been imminent since halfway through dec, seems to be holding up, though still down on that....half expecting a rubber stamp and approval and a fall in the SP of 75% the way things are going!

HER seems to be the most stable. Just does nothing. Another imminent one that seems to be imminent for months.

Next weeks another week though! Just so glad I was playing with £500 chunks, and not some of the money I've seen people lose on the iii board. They can't afford to simply leave the money and forget about it for a while.

JonnyBravo

Graham_Devon wrote: »

Emed I'm still 18% up on (was nearly 70% at one point). Infact, its the only thing I'm up on.

:j Hurray for EMED, can't comment on your others as I don't follow them.
(I've found my next "research project" but only just started reading on it. I won't name it yet but I'll share it later if it pans out I get in. Also wary as it has already spiked slightly)

Graham_Devon wrote: »

Next weeks another week though! Just so glad I was playing with £500 chunks, and not some of the money I've seen people lose on the iii board. They can't afford to simply leave the money and forget about it for a while.

Well of course thats if they really buy the amounts they say. Obviously.
And one mans £10k pocket money is another mans yearly salary.