Austere changes for RBS mortgages

Rover

Credit Policy Changes

From 30 April 2008, RBS Intermediary Partners are introducing changes to the credit policy for new build properties and the income proof requirements for self-employed clients.
What are the changes?
New build incentives

For all new build properties, the total amount of builders' incentives offered against a property will now be deducted from the advertised purchase price to give a "net purchase price". Our valuers will take the total incentives into account when providing the valuation figure.

The maximum LTV on new builds will be 85%, which will be calculated against the lower of either the 'Net Purchase Price' or the valuation figure.
New build buy-to-let flats maximum LTV

The new maximum LTV for all new build buy-to-let flats will now be 65%.
Definition of a 'new build' property

A 'new build' will be defined as 'any property that has been built, converted or subject to major refurbishment within the last two years'. The 2 years will start from the completion of the property.

For all applications on new build properties, please complete the additional information form, which should be returned with the packaging confirmation checklist and DD mandate (which are being renamed, see below). Copies are included below and are also available in the lending criteria and printable forms sections.

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A sign of things to come folks

BiggaThanBen

What about " income proof requirements for self-employed clients", could you post a link ?

Richard_Webster

Lenders should have been much more careful before about all new builds and then builders wouldn't have inflated the prices so much.

Rover

A further update (for the few remaining blinkered):
http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article3859936.ece

And, courtesy of HPC,
Update from the front line......

David Wilson homes are sh*tting themselves and can't get the money in fast enough. They have huge amounts of stock that is not shifting hence the stopping of construction on sites picked up on another thread.

The speed of developers going under is increaing four developers have gone under in the midlands in the last four days.

In all our development appraisals the values of the resi have been decreased by 30% most schemes are now going ahead for turnover. Other developers are still trying to do deals and have starting delaying payment for land by upto 18 .

There are a lot of twitching !!!!!! in the office at the moment as practically all the schemes are on hold as they attempt to re-engineer some valu and profit back in. Chipping on the land values is the first port of call and interesting the sellers (usually the major housebashers) moan like hell but accept it quickly. They are under phenominally pressure to get cash in the through the door as sales are shocking.

They are discounting well above the incentive figures normally allowed. For eg sales team have 10k of incentives they can give say 5k of carpets and white goods plus 5k discount thie is now at 20k discount.

Most importantly housebuilders can no longer include incentives in land reg figures so incentives used as deposits has now pretty much stopped. They now recognise that the lack of buyers with deposits is really hitting hard.

The issue with the land registry figures is that in 3-6 months when these now realistic prices are recorded IMO will see a sudden drop in prices.

Phirefly

Rover wrote: »

Credit Policy Changes

From 30 April 2008, RBS Intermediary Partners are introducing changes to.... the income proof requirements for self-employed clients.
What are the changes?

Well?

I find all this rather irksome considering my SE income is 3x more now than it was when I was working for The (inept, ignorant, incompetent) Man and the longterm prospects of my business are far brighter than His.

Rover

Would you like to ring them and ask?

Alan_M_2

Phirefly wrote: »

Well?

I find all this rather irksome considering my SE income is 3x more now than it was when I was working for The (inept, ignorant, incompetent) Man and the longterm prospects of my business are far brighter than His.

I often used to have this argument with my bank, I had contracts tied up far into the future, whereas an employee has 30 days notice.......They cared not, but it no longer matters since I became a Ltd company, therefore now I'm an employee and no questions are asked......what a strange system we operate in this country.

Phirefly

Rover wrote: »

Would you like to ring them and ask?

I did just call my own lender as it happened but "Due to unprecidented call volumes [they] suggest I call back later". I wish everyone would just stop jerking their knees and calm their headless chickens down.

Rover

I'm very calm thanks.