Barclays re-enters High LTV Mortgage Market

Graham_Devon

wotsthat wrote: »

I've just thanked your post - guess which category it falls into.

The "yer, does look a bit hypocritical, better suggest someone worries about thanks" one.

RenovationMan

I posted this yesterday about 'thanks':

RenovationMan wrote: »

I thanked ukcarper because he asked a question I was interested in knowing the answer to. I didn't necessarily disagree with nembot, I just wanted to know where he got his data from.

This board gets worse, that's the second time in as many days that I've been attacked for 'Thanking'. Has the delimitation between bulls and bears got to the point that even thanking a person from one 'side' or the other aligns you with that faction?

Deary me.

Rinoa

Graham_Devon wrote: »

I posted that HSBC were re-entering the 90% market the other day, with a LOWER interest rate than this AND no fee's.

Well you are confused again.

HSBC have been in the 90% market for 18 months.

http://www.mortgagestrategy.co.uk/products/hsbc-launches-deals-at-up-to-90-ltv/1006993.article

HSBC weren't re-entering the market at all, they were merely improving their existing 90% range and guaranteeing a set amount for FTB's.

Rinoa

Thrugelmir wrote: »

Factually incorrect. As Barclays through its Woolwich arm teamed up with the builders Bovis in 2010 offering a special 90% LTV rate deal. In May 2011 the interest rate on this deal was cut to 3.79%.

Good media spin from Barclays to make some headlines. Without actually lending an increased amount of money.

OK if you want a new house from bovis, although I suspect bovis was putting in their own 10% to match the buyers 10%.

wotsthat

Graham_Devon wrote: »

The "yer, does look a bit hypocritical, better suggest someone worries about thanks" one.

You've trawled through old threads, found one that I didn't even post in, found that I thanked someone for suggesting 4.49% wasn't that competitive. Somehow that makes me a hypocrite and you call that a contribution - grow up.

Rinoa

RenovationMan wrote: »

I wonder if we will see even a mild form of competition enter the mortgage market at these sorts of LTVs?

Mortgage approvals this past few months have increased at the same time as the relaxation in the mortgage market. I suspect this is not a coincidence.

Pimperne1

Rinoa wrote: »

Mortgage approvals this past few months have increased at the same time as the relaxation in the mortgage market. I suspect this is not a coincidence.

The market had to free up sometime. This is potentially a significant indicator. Good news for everyone I would suggest.

wotsthat

Rinoa wrote: »

Mortgage approvals this past few months have increased at the same time as the relaxation in the mortgage market. I suspect this is not a coincidence.

I imagine that some deposit savers are willing to pay more for their mortgage in exchange for shortening their saving time.

It's funny how things change. These 90% mortgages look quite expensive compared to the market but historically they are pretty competitive.

doire_2

Rinoa wrote: »

Mortgage approvals this past few months have increased at the same time as the relaxation in the mortgage market. I suspect this is not a coincidence.

Not many FTB getting in on the act though. Its mostly driven by BTL.

Banks approved 6% fewer house purchase mortgages in September than in August, with 17,000 would-be first-time buyers left out in the cold.

The figure of 33,130 house purchase approvals was, however, 8% higher than in September last year.

Figures from the British Bankers Association show that the number of remortgage approvals in September was also down on the August figure, by 8%, although about the same as in September 2010.

Despite the monthly dips in new approvals, banks’ gross mortgage lending totalled £8.4bn in September, up 7% on September 2010.

The BBA reports that growth in gross mortgage activity is being driven by the buy-to-let market.

David Dooks, statistics director, said: “A modest stimulus to gross mortgage lending is coming from the buy-to-let sector as rental yields continue to improve.”

Jonathan Moore, director of online rental accommodation website Easyroommate, said: “The recent improvement in gross lending may seem like welcome news to buyers, but the increase has more to do with buy-to-let landlords taking advantage of the current rental market than a much-needed surge in lending to first-time buyers.

“Strict lending criteria and absurdly high deposit requirements are continuing to keep mortgage finance out of the hands of the average first-timer, and this is flooding the private rented sector with demand. (no self certs, liar loans etc anymore then?)

“Each month there are 17,000 more frustrated buyers than before the downturn having to rely on rental accommodation because they are unable to buy. (they better get saving then eh numb nuts?)

“This is driving up competition for accommodation in both the flatshare sector and the wider rental market. For many investors, these conditions are too attractive to ignore, and we are seeing growing investment in buy-to-let.

“While this may well alleviate some of the pressure on the current stock of rental homes, the supply will have to increase at a much faster rate to match growing demand and limit further rent rises.”

Moore based his claim of 17,000 first-time buyers per month being left out in the cold on Council of Mortgage Lenders figures.

The CML says that in the 12 months to August an average of 15,800 first-time buyers a month secured mortgages, compared to an average of 33,100 a year between 2002 and 2007.

Richard Sexton, director of valuation firm e.surv chartered surveyors, said: “The mortgage market is doing its best to stagger on.

“The ailing economy is entering a state of rigor mortis, and the crisis afflicting Europe makes any resurrection of growth look unlikely.

“The temptation for lenders to pull back from the market and recoup equity over the winter is becoming overwhelming.

“First-time buyer numbers have fallen to their lowest since November 2010, and purchase approvals with a deposit of 25% fell to their lowest level in six months in September, both of which are tell-tale signs of a struggling mortgage market.

“Supply of credit is painfully restricted, meaning there is almost no margin for lenders to grow their loan books, so they are being understandably cautious and focusing on targeting borrowers with big deposits.”

Graham_Devon

wotsthat wrote: »

You've trawled through old threads, found one that I didn't even post in, found that I thanked someone for suggesting 4.49% wasn't that competitive. Somehow that makes me a hypocrite and you call that a contribution - grow up.

I wouldn't say trawled. Was posted less than 2 weeks ago.

And yes, it does. Hence why I was confused as to the stance on this thread showing that confidence is back....yet the stance on the other thread being that the rates are rubbish and the banks are "absurdly profiteering". Especially considering this is a worse product, with a £500 fee and 0.5% higher rates!

Can only imagine it's based purely on the name that posts the news.

Anyway, I'm done. Point made