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    Hi JPkeates , don’t worry about brokers , many of us have been in the thick of it for many years and the trials and tribulations of the current issues makes decisions on funding more challenging.
    All I would say is one’s broker should be there as a sounding board at times like this and be prepared to do research for the client even though in the short term it might not result in business being written, it’s the old fashioned courtesy of helping and giving advice so a considered judgement can be made.
    It shouldn’t always be a case of thinking this could be an income generator or not, Clients are a valued entity and as a broker one takes the rough with the smooth, fail to meet expectations on service and the client will go elsewhere and never to return.

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      That's a grown-up long term customer centred attitude.

      Just as you would expect!
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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        My motto in life is to treat people as you would expect to be treated, I.e Fairly and complete honesty.

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          Mortgage Payment Holiday Extension
          07:19 22/5/2020
          It has just been confirmed that the Mortgage Payment Holiday has been extended for another three months, this is positive news for those struggling financially because of Covid19 but as I have mentioned in previous postings will have potential adverse effects on those relatively new lenders whose funding is 100% reliant upon Institutional Funding.
          Once I get feedback from lenders I will update the Forum.

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            Hi LA, I hear it has been extended to October, does that mean if I apply anytime upto October I get 6 months? Or is it that borrows who took the option three months ago get a further 3 months making 6?

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              Hi Glover1862 , what a wonderful thought but unfortunately it means that anyone who has obtained the consent for the MPH can have it extended for a further three months but for those who have managed to exist in the interim but would not enjoy the opportunity of having a MPH then they can take advantage of the extension by applying.
              As I have mentioned already , such payment holidays should be considered as a last resort given that the payments will be amortised to the outstanding balance on which interest will have to be paid, if the remaining mortgage term is relatively short the hike in mortgage payments could be significant but clearly if one has grater than 20 years outstanding the increase in payments would be less.
              Apologies for curing cold water on your hoped expectations on the MPH. It did make me chuckle.

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                Thanks, i thought that would be the case,
                however I can see it extended again so might get 6 months anyway!

                I've posted on the CBS thread, I have a Offset flexx for the term
                residential mortgage with them, I'm loading up my linked saving account to mitigate any changes in rates, I did think of taking the MPH and put those funds directly into the linked saving account, 6 months worth could be £6k, I'd have the funds and they wouldn't be costing me any interest. I'm aiming to make my savings and mortgage balance then any interest changes have no effect, I'll keep it that way until the term ends. Might not be worth the hassle though!!

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                  If we were to go into negative interest rates then using any monies into the linked savings account might ( I stress might) proved the right strategy.
                  Bestof luck moving forward but don’t hold your breath over the MPH being extended even further as this could seriously impact of the number of lenders within the specialist mortgage market.

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                    Nationwide gives assurances of no Repossessions for Residential Homeowners for 12 months

                    Nationwide Building Society has pledged none of its customers who fall into arrears due to the coronavirus will lose their home until the end of May 2021.

                    The only caveat is that borrowers who are behind on repayments must work with the lender to get their finances back on track.

                    Landlord customers are also being encouraged to pass on payment breaks to tenants who are struggling with rent repayments.

                    Under plans announced by the government today, all mortgage borrowers will be able to extend mortgage payment holidays by another three months.

                    Nationwide is to provide assessments for homeowners struggling with mortgage bills during the Covid-19 crisis to help the find best solutions for individual circumstances.

                    The lender said there will be cases where a payment break is not in the best interests of the borrower and in these situations, alternatives will be suggested.

                    From mid-June, the society may offer any struggling borrowers flexibility on repayments, for example, to move to interest-only payments or partial payments where suitable.

                    More than a fifth of homeowners are worried they will not be able to keep paying their mortgage, with one in ten worrying they could lose their home, research commissioned by the lender found.

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                      The following article explains the potential ramifications of future lending by specific types of lenders because of Mortgage Payment Holidays.


                      The extension of mortgage payment holidays will exacerbate funding issues and operational difficulties for non-bank and specialist lenders, UK Finance has warned.

                      The trade body warned it was now “vital” that these lenders could access government schemes to continue to support their customers.

                      It highlighted that customers of these lenders were often self-employed, vulnerable, or had specialist financing needs and were more likely to have taken a payment deferral.

                      Trade bodies including UK Finance, the Finance and Leasing Association (FLA) and Intermediary Mortgage Lenders Association (IMLA) have already proposed possible solutions to HM Treasury and regulators at the Bank of England.

                      However, despite saying discussions were continuing, HM Treasury has made no further move to support the sector.

                      The issue was raised again as part of UK Finance’s response to the FCA proposals for extending mortgage payment holidays, with the trade body emphasising the urgency of the matter.

                      “In extending payment deferrals for a further four months both in terms of granting payment deferrals to customers who have already had one and allowing new payment deferral applications, it is important that the authorities consider the impact on, and provide the appropriate support to, the non-bank sector,” UK Finance said.

                      “Non-banks cannot currently access government support schemes to support residential and buy-to-let lending and are unable to access their core funding source given the disruption to securitisation markets and a likely reduced appetite by banks to provide wholesale finance to non-bank lenders.

                      “The non-bank sector is supportive of helping its customers, many of whom are self-employed, vulnerable, or who have specialist financing needs through the crisis and have done so to date without government support.”

                      Difficulties will be exacerbated

                      It added that “as payment deferrals continue, funding issues and operational difficulties will be exacerbated”.

                      These include the need to negotiate waivers on existing funding facilities and conditions as a result of offering or extending such payment deferrals.

                      UK Finance noted that “serving the significant cohort of customers who have specialist financing needs that cannot be met by high street banks and building societies will become more difficult.”

                      It concluded: “It is vital that authorities now allow non-banks to access government support schemes to ensure they are ready and able to continue to support customers, who otherwise may not be able to access mortgage, cards or specialist products from (high street) bank lenders, as we move towards recovery.”

                      Comment


                        The FCA has confirmed that the current ban on lender repossessions of homes will be continued to 31st of October 2020.

                        The regulator says this will "ensure people are able to comply with the government’s policy to self-isolate if they need to".

                        The FCA also confirmed the support firms should give to mortgage customers who are either coming to the end of a payment holiday or who are yet to request one.

                        It confirms last month's proposals that customers will be able to request a payment holiday up to the 31st of October.

                        The FCA says mortgage lenders should "offer a range of options for how the missed payments will be repaid, if they are able to resume payments".

                        Finally, the FCA confirmed that payment holidays will not have a negative impact on credit files, but stated that "lenders may use information obtained from other sources, such as bank account information, in their lending decisions".

                        Christopher Woolard, interim chief executive at the FCA, said: "The measures we have confirmed today will mean anyone who needs to can get help from their lender, if they are still struggling to pay their mortgage due to coronavirus.

                        "It is important that if a consumer can afford to re-start mortgage payments, it is in their best interests to do so. Customers should talk to their firm about the best option available for them."

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                          It is disappointing to report that yesterday three lenders Accord Mortgages, Clydesdale and Virgin Money have withdrawn their 90% Loan range for purchases and Remortgages for Residential applications citing a need to maintain customer service standards, this may indeed be true but I suspect that this might be a continuance of lowering the maximum percentage loans because of concerns over the current and future ramifications of Covid 19,
                          I really hope I am proved wrong and other lenders do not follow suit.

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                            And another lender The Furness has announced it is removing for the present its 90% Loan to Value products. I hope this isn't going to be the domino effect

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                              Apologies for the continued negative news but The Mortgage Works have this evening increased the rates of interest to be charged on Limited Company borrowings for BTL.

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                                HMO’s & Student Lets

                                It seems that there is increased nervousness amongst certain lenders towards HMO’s and by association Student Let’s . Following the announcement of Paragon Mortgages towards this associated combination , Aldermore and TMW have also stopped lending on HMO’s with or without these being let to students.

                                It is evident that Landlords who have focused on letting to Students have seen a marked increase in rental voids due to the resentment by students to honour their rental obligations as their respective universities/ colleges are not operating because of Covid 19.

                                In addition Lenders have seen a significant increase in the number of requests by Landlords to take mortgage payment holidays which forces them to take preventative steps to ensure no additional liabilities are taken on board by accepting new purchase or Remortgage applications.

                                There still lenders accepting HMO applications with or without Student let’s , my only concern is that these could be overloaded by such applications even though their rates are slightly higher and prompt them to withdraw also. I will of course keep the Forum updated on this topic and anything else which has a negative effect on mortgage business.

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