Mortgage mayhem as Bristol & West withdraws deals and First Direct raises cheap rate

WTF?_2

JonnyBravo wrote: »

Good for you and others who have a large deposit.
I'd argue that most people haven't been saving large deposits. They haven't needed to in recent past history so why should they?
Don't get me wrong... more fool them.... (I had to save and I'm a strong believer that those taking 100% deals were asking for trouble)..... just not sure how many do have that big deposit.



Please see above.
My original post was a generalisation not an analysis of your situation or indeed of any of those who are motivated enough to inform themselves (ie anyone using the MSE forum regularly is surely a little more savvy than the general public?)

Well you did say its going to be harder for any would be FTBer too

That's simply not the case - any FTB with the gumption to save a bit of a deposit and keep their noses financially clean is seeing housing become more affordable for them. Not just me.

You say that most people haven't saved large deposits - well too bad, I say. So what if they could buy with 5% or 0% over the last few years, those were anomalous conditions. Probably the biggest credit boom in recorded history. Throughout just about the entire previous history of modern finance you needed a deposit and it's a very good idea in any case. Unlike you, I have no sympathy for this attitude.

I could have taken the attitude that I didn't need to save, but I didn't because I knew that saving always made sense. Anyone who stopped to think should have been capable of realising that they should be stashing it away during the good times.

To be honest I could have saved a good deal more with a bit of extra effort but even without trying too hard and basically just by living within my means in a time of plenty I was able to save a decent amount.

JonnyBravo

!!!!!!? wrote: »

Well you did say its going to be harder for any would be FTBer too

arrgghhhhhh!!!
Hoisted by my own (pedants) petard!
Touche!

!!!!!!? wrote: »

That's simply not the case - any FTB with the gumption to save a bit of a deposit and keep their noses financially clean is seeing housing become more affordable for them. Not just me.

Indeed. Question is how many have that "gumption"?

!!!!!!? wrote: »

You say that most people haven't saved large deposits - well too bad, I say. So what if they could buy with 5% or 0% over the last few years, those were anomalous conditions. Probably the biggest credit boom in recorded history. Throughout just about the entire previous history of modern finance you needed a deposit and it's a very good idea in any case. Unlike you, I have no sympathy for this attitude.

Oh I have no sympathy for them either. Like I said.... more fool them.

!!!!!!? wrote: »

I could have taken the attitude that I didn't need to save, but I didn't because I knew that saving always made sense. Anyone who stopped to think should have been capable of realising that they should be stashing it away during the good times.

To be honest I could have saved a good deal more with a bit of extra effort but even without trying too hard and basically just by living within my means in a time of plenty I was able to save a decent amount.

Good for you.
Like I was trying to say orginally. Not sure how many of "Joe Public" have shared this belief. After all it's been the era of easy credit. Most have been busy spending it not saving it. And that's not just those who have bought a property, it's credit cards and loans too.

Snooze

IveSeenTheLight wrote: »

Surely with sustained / increased rental demand, this would mean the BTL's are more secure for rental periods even if mortgages rise when properties are re-mortgaged / go to SVR

No, not really. Dunno about where you live but up here in Leeds rental has been pretty much the same cost as a mortgage for some time (in fact rental has been higher in many parts) so if the folks can't afford to keep up with mortgage repayments, what makes you think that they can keep up with their rent?

Furthermore, if they've lost their house from not keeping up with the mortgage then their credit file will be toast which means that the majority of landlord's won't touch them anyway.

Rob

brit1234

Then there was ARLA who stated rents were down by 9%. We haven't even mention re-mortgaging buy to let properties that are falling in value, that would be a interesting survey result.

Sir_Humphrey

brit1234 wrote: »

Then there was ARLA who stated rents were down by 9%. We haven't even mention re-mortgaging buy to let properties that are falling in value, that would be a interesting survey result.

I have seen little evidence of rising rents. I have not had a rent increase for 5 years (and my LL has not increased rents for new tenants by much as far as I can tell). A friend renting a flat with her hubby in Islington has only had one increase of IIRC 6% over the last two years.

Even if my rent increased by 10%, it would only cost about £400 a year, which is a fraction of what would be gained in price falls. And I would probably move anyway, so more fool him if he tried that!

m00m00

my rent has increased by approx 8% total in 3 years

I would say conservatively this property has lost 30% of it's peak value in that time.

meanmachine_2

Can anyone explain how Skipton BS can continue to offer a market beating 5.79% 2 yr fix, with a high 90% ltv?

http://www.skipton.co.uk/mortgages/fixed_rate_mortgages/2_Year_Fixed_Rate_Mortgages.aspx

They must be getting their money from places no one else can find. Even First Direct/HSBC have had to hike rates in the past week...

Weird.

m00m00

or it's a bait and switch

how many people are actually getting this rate ?


and what's the small print on fees + multipliers ?

meanmachine_2

Could be bait and switch, but they also offer ludicrously high multiples of income - well beyond even the Halifax.

Has no one told them the market's tanking?

I didn;t even think Skipton were that big. But they certainly seem to be behaving in an aggressive manner.

whu

fees - £1000
max loan £250K