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    NOT SURE WHAT IS GOING ON IN THE MORTGAGE / PROPERTY MARKET !!

    Given the media reports of high demand for property across most of England resulting in properties being sold at significantly higher prices and the failing service of lenders , solicitors in providing speedy service to applicants/clients, I am somewhat surprised that over the last three weeks and accelerating this week, there has been a marked increase in the number of lenders who are sending out bulletins to brokers announcing of a reduction in many of their mortgage rates both for residential house purchase but also Buy to Let. Given that there has been no change in interest rates it really does raise the question of why , surely the focus should be on dealing expeditiously with the cases in hand before doing battle for an increased share of the mortgage market. From my own perspective I fear it could potentially all end in tears should there be a correction in the property market and rates have to be increased to combat the signs of a significant rise in Inflation. My hope is that I am proved wrong but I cannot help but express my concerns.

    Comment


      Times they are a changing

      First time Landlords have todate been excluded by lenders from buying their 1st property which is an HMO, today one of the relatively new lenders have listened to its broker community by offering such facilities up to 70% on either a 2 or 5 years , rates are slightly higher than those available for experienced landlords but a positive stance for those seeking a higher yield from such properties. The Completion Fee is 1.5%

      Comment


        Is this a portent of things to come ??

        Given recent comment on stagflation , this afternoon Nat West has become the first lender to announce an increase in mortgage rates, whilst these apply currently to Regulated House Purchase/Remortgage applications , it will be interesting to see if this trend were to develop and cross over to Buy to Let and replicated by other lenders.

        I will update over the coming weeks.

        Comment


          As Victor Meldrew would say "I just don't believe it"

          Immediately after the budget , Nat West , Barclays , HSBC, TSB have announced increases in residential mortgage rates which according to analysts would mean an additional £400 in the annual costs of a variable rated mortgage but will equally be reflected in new mortgage pricing.
          As Mr Scrooge would say Bah Humbug Bankers.

          Comment


            The following was produced in a leading Mortgage Intermediary publication which should prompt everyone with mortgages coming to the end of their incentive periods to review what options are available.




            Homeowners are being told to prepare for a 13 per cent increase in their mortgage interest costs by 2023 as rates are forecast to rise to rein back inflation.



            Expectations for rising mortgage interest costs predicted by the Office for Budget Responsibility (OBR) were buried in the Budget documents. They show that the OBR expects mortgage interest costs to start rising next year before reaching an average 13 per cent increase in 2023.

            The forecast runs alongside the OBR’s projection that inflation will peak at 4.4 per cent in Q2 2022 before falling back towards the government target of two per cent throughout 2023.

            The OBR’s forecast shows that following a fall in interest costs for most of this year they will begin to gradually rise in the first half of 2022 before speeding up in quarter three, rising 7.4 per cent before hitting 11.4 per cent by the end of the year. An average rise of five per cent in mortgage costs is anticipated for the year.

            By quarter two of 2023, the OBR predicts mortgage cost rises will peak at 14.8 per cent before beginning to fall to 10 per cent in Q4.

            Comment


              About time savers had some good news!!
              My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

              Comment


                Mortgage rates up - savings rates up.

                About time savers had some good news!!
                My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

                Comment


                  Mortgage rates up - savings rates up.

                  About time savers had some good news!!
                  My views are my own - you may not agree with them. I tend say things as I see them and I don't do "political correctness". Just because we may not agree you can still buy me a pint lol

                  Comment


                    I think the increase in savings rates might be a bit premature , certainly some institutions have marginally increased savings rates in the last few weeks but I doubt whether it will be in direct correlation to the level of increase in lending rates. A case of hope springs eternal and the glass is half full and not empty !!

                    Thanks for your response

                    Comment


                      As I boringly remark, I had a (for then) large mortgage 15th Nov 1979 when BoE rates reached 17% under Thatcher, an increase of iirc 7% in just over a year. That was painful, even with two decent salaries coming in.

                      If I'd got sick, lost job, more financial stress it might have meant disaster for me.

                      Good luck folks, belt tightening time!

                      Will post today's Times cartoon later with a message as you our present position.
                      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                      Comment


                        Today's "Times" (prop Rupert Murdoch) cartoon by the great Peter Brookes (he's unkind to everyone..)
                        .
                        Note the feet...
                        methode_times_prod_web_bin_0aabf068-3820-11ec-8ef4-8e6db1a4b82a.jpg
                        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                        Comment


                          Higher mortgage interest rates, marginal increase in savings rates = nice big bonus for bankers. Cynical, moi?

                          Comment


                            Well it didn’t take long before the 1st lender announced an increase in mortgage rates, Platform Homeloans announced an increase of 44 basis points , other lenders announced the withdrawal of Very keenly priced products prior to launching “new rates”

                            Comment


                              I have noted that the majority of lenders are now launching products geared to property having an EPC certificate of A, B,C which makes the following worthy of serious consideration and I am not intending to be considered a scare monger.

                              In light of the above can I ask an open question”Are Landlords aware of what is going to happen in 2025 and beyond?”
                              2025 is the trigger point when any new tenancy must be accompanied by the property having a minimum EPC of a grade C or ideally B or A; should the property not be accorded with any of these EPC classifications then the property is deemed unsuitable for Letting; from 2028 every property must have this grade even though there has been no change of tenant. All of this is going to demand that Landlords must , sooner rather than later, make assessments as to what works are needed to gain an upgrade in the EPC classification. Current estimates of getting those presently with D&E grades upwards of £6000, an amount which might need to be borrowed by either a Further Advance/ Remortgage or a big dip into the bank account! Unfortunately. And without wishing to alarm Forum readers the upgrades will impact on obtaining new finance either by a Product Switch or a Remortgage.

                              I have been making enquiries of lenders as to their independent approach when existing loans are to renegotiated and whilst it is too early to be specific, it is reasonable to expect a lender to put a bar on renewing current borrowings including allowing loans to even revert to its Standard Variable Rate if the subject property has not achieved such an upgrade unless of course the tenancy is already in force and checks will automatically be made to the government registered EPC data base and where the property doesn’t conform then it would be within their right to call in the current mortgage and by implication the property would become unmortgagable to any new lender.

                              I am of the view that for many properties particularly in the low value sector could prove very difficult if not impossible to achieve an upgrade to C being the lowest and the landlord being obliged to sell as a property only suitable for home ownership, can one imagine the enormous pressure such actions could make on local housing pressures and the impact on capital values so far as the Landlords are concerned.

                              These I stress are my initial thoughts on a situation where it has been established that a significant percentage of properties are currently D or E

                              Comment


                                Originally posted by loanarranger View Post
                                if the subject property has not achieved such an upgrade unless of course the tenancy is already in force and checks will automatically be made to the government registered EPC data base and where the property doesn’t conform then it would be within their right to call in the current mortgage and by implication the property would become unmortgagable to any new lender.
                                Opting out of the register might become routine practice;

                                https://www.gov.uk/guidance/energy-p...w-do-i-opt-out

                                Holders of EPCs may opt out by contacting our helpdesk:

                                Email: mhclg.digital-services@communities.gov.uk

                                Phone: 020 3829 0748

                                It is possible to opt-out an EPC at any time. When a request is made, your EPC will be removed from the registers within 2 weeks. Your EPC will also be opted-out from future bulk data releases, which are expected to be published 2 to 4 times each year.
                                What part of the t&c's could they use to call in the loan?


                                Comment

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