Mortgage rates falling again

westernpromise

http://www.telegraph.co.uk/personal-banking/mortgages/lenders-cut-rates-penalties-mortgage-war-intensifies/

The battle for mortgage customers has entered a new phase as Coventry Building Society launches a rare five-year fix loan with no penalty for early repayment.

Its five-year Fixed Flexx mortgage, for those with deposits of at least 50pc, costs £499 to set up and has a 1.99pc interest rate. ...

Lenders are braced for a surge in new applications as a wave of existing fixed-term deals come to an end this autumn.

Yorkshire Building Society reported a 68pc rise in remortgage applications in the year to August.

I'm sure rents will be falling rapidly too, eh, Crashy?

Pulpstar

Not surprised about Yorkshire Building Society, they should be my lender and are near the top of the best buys. 3 weeks or so from application to full offer.

Maxwell007

Rates are falling but the prices in London are still WAY TO HIGH . ..

Niv

How disappointing that this is happening while I am still tied in, no worries, I am sure they will rise in time for me to renew!

Conrad

Buy To Let is near death as far as I can tell. The income tax and stamp duty rises coupled with the knock-on tightening of B2L affordability criteria make it a far less attractive proposition just now.


Lenders need to re-think affordability or suck up having far fewer B2L applications.


This is only anecdotal. Perhaps if property prices fall, it may we worth investing again.


I've said for a while commercial property seems ever more attractive although not without downside.




If my anecdotal assessment is correct and fewer Landlords are buying property, rents may well rise faster than would have been the case.

GreatApe

Conrad wrote: »

Buy To Let is near death as far as I can tell. The income tax and stamp duty rises coupled with the knock-on tightening of B2L affordability criteria make it a far less attractive proposition just now.


Lenders need to re-think affordability or suck up having far fewer B2L applications.


This is only anecdotal. Perhaps if property prices fall, it may we worth investing again.


I've said for a while commercial property seems ever more attractive although not without downside.




If my anecdotal assessment is correct and fewer Landlords are buying property, rents may well rise faster than would have been the case.

The biggest mover of rents is the local economy

A more slow gradual trend will be households formations vs new builds.

That means demographic changes (more single person households) and immigration will try push up rents and new build housing (plus conversions like HMOs) will try to push down rents.

phillw

Conrad wrote: »

This is only anecdotal. Perhaps if property prices fall, it may we worth investing again.

Rental isn't going away, you have to be more savvy now when investing in property. Which is no different to other investments right now. It's probably the end of the armchair landlord.

Conrad wrote: »

Lenders need to re-think affordability or suck up having far fewer B2L applications

I expect commercial lending will take over.

GreatApe wrote: »

That means demographic changes (more single person households) and immigration will try push up rents and new build housing (plus conversions like HMOs) will try to push down rents.

It's taken a while but the amount of house building is accelerating, ready for when the government stops immigration. It's going to be interesting....

Thrugelmir

westernpromise wrote: »

Its five-year Fixed Flexx mortgage, for those with deposits of at least 50pc, costs £499 to set up and has a 1.99pc interest rate. ...

Appears to target a very limited market .