Another one bites the dust - more mortgages being pulled

poppy10_2

They are dropping like flies today.

Today both Natwest and the Royal Bank of Scotland withdraw their 85% LTV BTL deals, requiring at least 25% deposit from now on.

UCB Home Loans, Nationwide's specialist buy-to-let lender, has reduced its LTV to 75 per cent, from 85 per cent. Mortgage Express, the UK’s biggest buy to let lender, has also withdrawn its 90 per cent loan to value deals for buy-to-let investors. The Mortgage Works and UCB will no longer lend to first time landlords.



Lehman brothers has announced its UK mortgage lending arms, Preferred Mortgages and SPML, will be suspended.

Mortgages plc, the wholly owned subsidiary of Merrill Lynch, is withdrawing all its fixed rate products.
The company is also reducing its maximum loan to values on all products to 70% and is reducing the maximum loan size to £300,000. It is withdrawing all self-cert and right to buy criteria and is raising rates on all remaining products by 1%.

BM solutions have withdrawn all their current range, replacing them with new deals from tomorrow.

Sources:
http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article3652742.ece
http://www.mortgagesolutions-online.com/public/showPage.html?page=758170
http://www.mortgagesolutions-online.com/public/showPage.html?page=758173
http://www.mortgagesolutions-online.com/public/showPage.html?page=758225

Datasafe_2

Crunch!!!!

Zebedee69

Rough times are ahead..... Busy packing money into my loans and cards to pay them all off.

Treadmill

One thing I don't understand about the Credit Crunch ... Where did all the money go ? Surely somebody must have it or does money just evaporate ?

WTF?_2

Deleted: duplicated info from OP.

WTF?_2

Treadmill wrote: »

One thing I don't understand about the Credit Crunch ... Where did all the money go ? Surely somebody must have it or does money just evaporate ?

New money is essentially 'created' when you borrow it and 'destroyed' when you pay it back. The lender gets to keep the interest you pay.

Money lost when people default on debts leaves the lenders with a capital shortcoming.

Now, banks have to balance their books and they are only allowed to lend a multiple of the capital they hold, so this loss of money means there is pressure put on their ability to issue further loans. In extreme cases where lots of people default it can drive the bank to insolvency because they can't balance the books.

Were it not for a massive amount of emergency lending coming out of the Central Banks, many of our everyday banks would now be in severe danger of going under water.

The result is that no lender with money wants to lend it to another bank in case they go bust before they pay them back - at least not without a high interest payment to reflect the risk. Hence we hear about the credit crunch and see LIBOR rise (the interest charged on loans between banks).


So the end result of people defaulting in large numbers on sizeable loans is that the banking system finds itself unable to loan money without a large premium and then, only to really credit-worthy people. Some banks will for sure also go under and might need to be publicly rescued a la Bear Stearns and Northern Rock.

John51

Isn't the Bank of England pumping £10 bill a week into the economy? Up from £5 bill per week.

This won't show up straight away in the economy as it is a 'save the collapse' gesture but is as inflationary as it gets.

Trollfever

CRUNCH.


How long before nearly every thread on this Board is titled:


Please help.........Urgent..........I can't find anybody to lend to me?

poppy10_2

John51 wrote: »

Isn't the Bank of England pumping £10 bill a week into the economy? Up from £5 bill per week.

A ten pound bill isn't really gonna change the situation....

jonathon_hart

Hi.

An Abbey advisor has told me this morning that Abbey will be upping their rates tomorrow.

Jonathon

stuffcrash

jonathon_hart wrote: »

Hi.

An Abbey advisor has told me this morning that Abbey will be upping their rates tomorrow.

Jonathon

Everyones going to up their rate, its a mess. if you thought the 90s crash was bad wait till you see this one.