Mortgage News

Collapse
This is a sticky topic.
X
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • #16
    I am detailing a response from the FCA. Which puts this entity into context.

    a spokeswoman for the FCA stated:

    “A firm located in an EEA Member State can provide a lending service under the Electronic Commerce Directive to UK consumers, but the service has to be provided solely at a distance and on-line.

    “This service however would not be regulated by the FCA and if something went wrong, the FCA is not generally able to intervene, additionally there would be no recourse to the compulsory jurisdiction of the UK’s Financial Ombudsman Service.”

    Comment


    • #17
      I would worry about banks treating people fairly, they have been ripping us all off for many years. Rigging rates, Gold markets, Libor, currency trades, swap rates, Mis selling etc....etc...

      Comment


      • #18
        On a personal level , such actions by the banks do pale into insignificance when people fall foul of lenders that do not comply with the FCA rules of treating customers. I know there are thousands who have suffered under the hands of banks and I do not tend to make any justifications for what the banks have done.

        Comment


        • #19
          I am detailing an announcement which appeared on a broker website, I cannot help but chuckle given that from Monday afternoon the website was down so how on earth they could have been deluged is beyond comprehension.

          Selfcert.co.uk has been forced to close its doors to new applications for three months after a flood of enquiries in the lender’s first week has overwhelmed staff and crashed its website.
          The lender, which is based in the Czech Republic to allow it to circumvent Financial Conduct Authority rules that banned self-certification mortgages several years ago, said “a severe backlog” of interest meant it couldn’t keep up with demand.
          It launched on Monday this week and by Tuesday had seen 4,000 potential borrowers register interest.
          The site said: “We have ceased taking new applications until further notice, this will be at least three months.
          “We are currently working through a severe backlog of people that have registered an interest in these products.
          “Although we started on Monday 18 of January people have been contacting us since reports of the products returning first appeared in November 2015.”

          Comment


          • #20
            Note from the FCA re the published Self Certification Scheme
            The Financial Conduct Authority has published a warning to consumers considering applying for a self-certification mortgage from any lender trying to circumvent European mortgage regulation.
            A statement published on the regulator’s website this morning said: “In light of recent media coverage about a firm outside the UK relying on the European Electronic Commerce Directive to provide mortgages to customers in the UK without the protections offered by the UK’s mortgage regime, we are telling consumers about what this means for them.
            “Previously, when consumers took out a self-certified mortgage they self-certified that the income stated in their mortgage application was true.
            “Because of the harm caused to consumers in the past, this is no longer permitted in the UK and firms must check a customer can afford a mortgage, including verifying their income in every case.
            “From 21 March 2016, all firms offering mortgages in the UK (including EEA firms) will have to comply with the Mortgage Credit Directive, which requires a thorough affordability assessment based on information that has been verified by the lender.”
            Borrowers who take out a mortgage offered from outside the UK under the ECD will lose UK consumer protection benefits such as the right to refer complaints to the UK’s Financial Ombudsman Service and to be treated fairly when facing payment difficulties.
            Under the ECD, firms can only contact customers online, not by telephone or post. This means borrowers will not be able to speak to the firm about their mortgage arrangements.
            The FCA’s statement adds: “Firms providing on-line services from an establishment in an EEA State other than the UK under the ECD have to comply with the law of that state, rather than with UK regulatory law.
            “If anything goes wrong, the responsibility is with the other EEA State’s authorities.
            “Even if a regulated mortgage adviser in the UK recommends such a mortgage, you will not be able to get compensation from that adviser if it turns out you cannot afford the mortgage payments. This is because the adviser is not responsible for assessing affordability.”
            The regulator has advised consumers to “find a regulated mortgage adviser who can give you advice on mortgage products from a wide range of lenders including those regulated in the UK”.
            It adds: “If you are still considering using a firm based outside the UK, find out what protections you will have if things go wrong.
            “Ask for a copy of the mortgage terms and conditions.
            “Ask for the contact details of the firm’s regulator.
            “Find out how the firm will deal with borrowers who fall into arrears, plus details of fees and charges.
            “Remember you will not be protected by UK regulation if things go wrong, and you could lose your home if you cannot afford your mortgage payments.”
            The statement comes a week after selfcert.co.uk was forced to close its doors to new applications for three months after a flood of enquiries in the lender’s first week overwhelmed staff and crashed its website.
            The lender, which is based in the Czech Republic to allow it to circumvent Financial Conduct Authority rules that banned self-certification mortgages several years ago, said “a severe backlog” of interest meant it couldn’t keep up with demand.
            It launched on Monday last week and by Tuesday had seen 4,000 potential borrowers register interest.
            The site said: “We have ceased taking new applications until further notice, this will be at least three months.
            “We are currently working through a severe backlog of people that have registered an interest in these products.
            “Although we started on Monday 18 of January people have been contacting us since reports of the products returning first appeared in November 2015.”

            Comment


            • #21
              While I'm no expert in Czech law, the prevailing view of the applicants must be, "well the property I'm securing the loan on is in the UK, I'm sure I can afford the mortgage (as everyone always is) and the worst that can happen is that the bank goes bust, not me".
              Which is a proper 2008 mind set to me.
              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).

              Comment


              • #22
                Back on to the bank bashing...........................The FCA regulation basically means nothing, your probably better off with a Czech bank. Our banks launder Cartel drug money, steal from pensioners, rig every possible market, mis sell every possible thing, steal peoples assets, rob peoples businesses. It is pretty hard to see what protection FCA regulation gives us

                Comment


                • #23
                  British house prices rose at a slower pace than expected in January after a fall in mortgage approvals the month before, although mortgage lender Nationwide said on Wednesday that momentum should pick up in 2016 as a whole.

                  Read full article at,
                  http://uk.reuters.com/article/us-bri...-idUKKCN0V514P

                  Comment


                  • #24
                    Predictions of a major Property Correction

                    Without wishing to put a downer on the weekend , the following extract from a trade Paper highlights the uncertainties over the UK market.

                    Britain's housing market is "ripe for a correction" because house prices are reaching the limit of affordability for many people, says a well-known economics research firm. House prices have soared in recent years, especially in London and the south-east of England, fuelled by a shortage of supply and intensifying demand.
                    A healing economy with high employment, growing wages and low interest rates has lifted demand in the property market. But the average house price in England was £302,000 ($435,000) in November 2015, says the ONS, up 50% since 2005. In London the average is £537,000, a 90% increase over a decade. To contrast with pay, average weekly earnings between 2005 and 2015 rose just 23% in England and 19% in London, much slower than property prices.
                    "On balance, the market again seems ripe for a correction," said the UK Housing Market Focus report by Capital Economics for January. "Yet unless the economy lapses back into recession, or interest rates rise much further and faster than seems plausible, the early stages of any adjustment are most likely to occur in real terms, with house prices rising more slowly than incomes."
                    Capital Economics is forecasting annual UK house price growth of 2% on average in 2016 and 2017, a sharp slowdown from recent years as affordability is stretched to its limits for first-time buyers. Many would-be buyers are now priced out of the market altogether, unable to save a sufficient deposit or secure a large enough mortgage.

                    Comment


                    • #25
                      That report assumes that property is being bought by UK buyers with UK earnings.

                      That's obviously a significant proportion, but a lot is being bought with overseas money and money from business.
                      When the global economy resets, the UK property market will adjust, like it did in 2008/9.
                      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).

                      Comment


                      • #26
                        You make a fair point on the article; as we all know property is cyclical but viewed over a medium to long term basis it is a better option than in an instant savers account.

                        Comment


                        • #27
                          Can I also state as I have many, many times to many people - if houses are traditionally 6 times earnings does it not stand to reason that if money becomes more affordable and cheaper to borrow (which seems to be the trend) that average multiples would rise? This seems obvious to me. They seem expensive to these so called experts as they are using historical data but if we are in new times (and I am not saying we certainly are) where money is cheaper why is no one factoring this in? If the new base rate is going to average out at 1.5% then could the new normal not be 10 times income?

                          I do not know these answers but I do think prices will be higher going forward. We are at mid point in what seems to me another 18 year cycle so why we would see any major corrections is beyond me. I keep hearing the same argument and it is all using historical data but this data was in times where base rates seemed to range from 4%-12% so why the hell are they still using it when our base rate over the last several years has averaged out at 0.5%?

                          Comment


                          • #28
                            Metro Bank withdraws from Consumer Buy to Let Mortgages

                            I have just received the following notification from Metro Bank regarding their position so far as Consumer Buy to Let Mortgages are concerned: I fear that a number of other lenders will follow suit making funding for First Time Investors and Accidental Lanldords to obtain funding so please watch this space for any further announcements.

                            As a valued intermediary, we wanted to make you aware that we will no longer accept new mortgage applications that fall under the Consumer Buy to let rules of The European Mortgage Credit Directive from close of business on Tuesday 16th February 2016. This includes cases that are let to buy.

                            Comment


                            • #29
                              Hardly surprising since the government seem hell bent on hammering the smaller/accidental landlords. They stole your pensions so people decided to invest in property, now they are trying to steal your money from there as well! The government have bills to pay and no money to pay them

                              Comment


                              • #30
                                It looks like the government are happy to see people struggle in retirement. They seem to look after themselves and no-one else. I detest politicians, nothing but a bunch of crooks!

                                Comment

                                Latest Activity

                                Collapse

                                Working...
                                X