Co-op launches lowest-ever five-year fixed mortgage

Thrugelmir

Conrad wrote: »

thus an FSA rule was breached.

I promise you this sort of thing is my daily experience. Perfectly able people curtailed by the knowing nanny state.

Rules are made for good reasons. Often so not as to create problems in the future. Simplistic to constantly blame a "Nanny" state. When the underlying law which could be infringed has been in place for decades.

The_White_Horse

the FSA are unfit for purpose in my opinion. Just idiot lefties making more red tape and beaurocracy for the sake of it, whilst earning £60k plus and a gold plated pension for their troubles.

IveSeenTheLight

Conrad wrote: »

Example today - a very wealthy LL buying another B2L, but declined today as the lender got wind his Daughter might reside there, thus an FSA rule was breached. I'm talking someone with tens of millions in wealth here.

I'm sure they will not be that bothered with missing out on the BTL mortgage then.
If his daughter was to reside there, then he could get lower rates standard mortgages as opposed to BTL.
Even the interest being taxed deductable still means that he's being taxed for the profit of leasing to his daughter

Generali

Conrad wrote: »

The FSA wont let them lend. Does anyone here actualy understand this or not?

It's actually the BIS and Central Banks that are preventing lending. The FSA are just enacting the policy.

The new rules leading in to Basle III are very restrictive compared to what we are used to.

grizzly1911

Conrad wrote: »

Clapton I meet lender reps begging me for business. I simply do not encounter this 'lenders don't want to lend thang'. Lender staff have sales and completion targets to meet.

When people say lenders don't wish to lend, how do they know this?

All I ever encounter is FSA rules in the way.
Example today - a very wealthy LL buying another B2L, but declined today as the lender got wind his Daughter might reside there, thus an FSA rule was breached. I'm talking someone with tens of millions in wealth here.
I promise you this sort of thing is my daily experience. Perfectly able people curtailed by the knowing nanny state.

Tens of millions of net wealth?

Jegersmart

Interest rates are low because the base rate is low - if you can borrow money at 1% and lend at 3-5% that is good business imho. Judging by the high (well compared to the past) deposit requirements currently in place I would say that the banks are potentially hedging against lower house prices and higher future interest rates but most importantly are in the process of deleveraging or increasing their reserves. Banks in general have been doing this since the crash and will continue to do so as it takes years to complete the process after past "excesses" or "easy money" (100% mortgages etc.). There is lending happening but it is somewhat constricted in my view, the parameters they lend on are clear indications of this.

all imho
J

Wheezy_2

Just wanted to say thanks to the OP for posting and drawing my attention to this.

Mortgage switch documents signed and posted today.:)

We were in the last year of our previous 5-year fix with the co-op and happily jumped into this one (small ERC to pay, but will be recouped soon)

paulmapp8306

Shows how quickly mortgage deals change.

Personally, Im on a 2 year fixed, with £1000 fee. Interest is 3.69% and it was available with 15% deposit. That was in July this years.

shortchanged_2

Conrad wrote: »

Example today - a very wealthy LL buying another B2L, but declined today as the lender got wind his Daughter might reside there, thus an FSA rule was breached. I'm talking someone with tens of millions in wealth here.
I promise you this sort of thing is my daily experience. Perfectly able people curtailed by the knowing nanny state.

If he's that wealthy why doesn't he just cash buy it?

Graham_Devon

Conrad wrote: »

All I ever encounter is FSA rules in the way.
Example today - a very wealthy LL buying another B2L, but declined today as the lender got wind his Daughter might reside there, thus an FSA rule was breached. I'm talking someone with tens of millions in wealth here.
I promise you this sort of thing is my daily experience. Perfectly able people curtailed by the knowing nanny state.

But that IS a rule.

Doesn't matter how wealthy they are. If they are that wealthy, they can buy a house for their daughter to live in, without a business loan.

I couldn't apply for a business loan to send myself on holiday, so I don't see why you take offence to someone being declined a BTL loan for a family residence.

Did you really take this case on, as an advisor and expect him to get a BTL mortgage without problems?