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

m00m00

meanmachine wrote: »

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.

and they are still promoting MEW

http://www.skipton.co.uk/mortgages/additional_borrowing/


madness

pickles110564

meanmachine wrote: »

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.

Yeah from the bank of pickles.

meanmachine_2

Wonder how long it'll be till Skipton withdraw what must be a loss-making 2 yr fix well below money market rates.

Anyone care to join the Great Skipton Sweepstake?

The rules are simple: When will Skipton announce they are pullling or repricing their 5.79% / £999 fee 2 year, 90% ltv fix?

Here are the available dates:

Monday 23rd
Tues 24th
Wed 25th
Thurs 26th
Friday 27th
Sat 28th
Next week (dates 29th to 6th)
Following week (7th to 14th incl)

oranger

meanmachine wrote: »

Wonder how long it'll be till Skipton withdraw what must be a loss-making 2 yr fix well below money market rates.

They don't *have* to be loss making rates. Just because rates available to banks now are much higher, doesn't mean they're not working through a pile of money that they'd already secured at a lower rate. When it runs out, then the deals will be pulled.

meanmachine_2

oranger wrote: »

They don't *have* to be loss making rates. Just because rates available to banks now are much higher, doesn't mean they're not working through a pile of money that they'd already secured at a lower rate. When it runs out, then the deals will be pulled.

Good point.

so the question is - when will the money run out now they're topping those best buy tables?

oranger

meanmachine wrote: »

Good point.

so the question is - when will the money run out now they're topping those best buy tables?

Next week

Seriously, I don't think you can predict this kind of thing. There are two many factors that we're not party to. They might have a very restrictive lending criteria, focussing on quality not quantity.

meanmachine_2

oranger wrote: »

Next week

Seriously, I don't think you can predict this kind of thing. There are two many factors that we're not party to. They might have a very restrictive lending criteria, focussing on quality not quantity.

Well, they refuse to offer all but the longest fixes via brokers, so there's one clue anyway...

IveSeenTheLight

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.

ARLA has already been dismissed as a small percentage and hevily weighted to London and the South East.
Not a full reflection of the UK in general.

Sir_Humphrey wrote:

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!

I too do not increase rents for existing tenants. If they are good tenants and they pay on time, I'm happy for them to stay as long as they want. The tenants benefit from not having increasing rent and I benefit as having longer tenants and lower risk of voids.

I do however increase the rents between tenants.
On two of my properties I have increase them 22% and 14%.

IveSeenTheLight

m00m00 wrote: »

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.

But any landlord with any nous investing in property has not done sow on the basis of capital gains.

Rent increasing is more security against the outstanding loan the LL took out and actually, if you compound with the guess that the property has dropped 30% will be making the rental yield even greater

Renting out a property has to be factored in as a middle to long term investment, not relying / hoping for short term capital gains

m00m00

the landlords bought virtually the entire block for pennies (relatively) many many years ago.

their yield will be massive relative to their initial outlay.

hence I have about as secure a tenancy as can be expected without it actually being a secure tenancy.