The benefit of IFA's

IveSeenTheLight

Thrugelmir wrote: »

Fact. Banks do not borrow at base rate. So the view that lenders make a margin between BOE base and quoted mortgage rates is totally erroneous.

You cannot deny that when rates were "normal", there was a margin of circa 0.26%

Now the margin is more akin to 3.26%

when rates "normalise" there is no guarantee and I believe it is highly unlikely that the margin will remain at over 3%

Thrugelmir wrote: »

I guess that's where your early observation about being fleeced came from. No doubt your tenants feel the same. Despite your protestations about being charitable.

Hmmmmmm.
No-one is protesting here, but lets look at your other points.

"My observation about being fleeced" - Can you articulate what the costs are for arranging a BTL mortgage and why it is fair for this to be a percentage of the property value.
With this regularly being 2.5% of the mortgage amount, this can be thousands of pounds.
A £150k mortgage therefore would have a £3,750 arrangement fee.
I'd appreciate if you can justify this fee for an arrangement when other mortgage products are far lower

There is "No Doubt that my tenants feel the same" i.e. that they are also being fleeced.
Interesting, but could you explain further as I lease my properties under the market rate and have often improved the properties throughout my time as a landlord.

Thrugelmir wrote: »

Let's see how future unfolds. As I expect many more twists and turns for the foreseeable future. The bad lending decisions, in particular during the period 2003-07, have yet to be revealed to expose their hands.

Yes, lets see.
You've been saying this for a number of years now and so far it has not unfolded as you have vaguely predicted.

Meanwhile, those living in reality will get on and improve their lives.