Mortgage News

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  • loanarranger
    replied
    To help clarify the changes relating to TMW & Nationwide I am detailing the new LtV’s across both brands.
    Nationwide for Intermediaries
    Max LTV Transaction type
    95% Product Transfer
    95% Purchase - Existing NBS borrowers
    80% Purchase Equity Share - Existing NBS borrowers
    75% New Purchase and Remortgage - new customers
    75% Purchase Equity Share - new customers
    The Mortgage Works
    Max LTV Transaction type
    80% Further Advances
    80% Product Transfer - Buy to Let
    75% Buy to Let - Purchase & Remortgage
    75% Let to Buy
    75% Ltd Co Purchase and Remortgage
    75% Product Transfer - HMO & Ltd Co

    Leave a comment:


  • loanarranger
    replied
    Metro Bank have placed a maximum LtV of 80% across its residential mortgage range.

    Bank of Ireland have dropped the maximum LtV on itsresidential products to 85%.

    Leave a comment:


  • loanarranger
    replied
    Nat West have just announced that they have placed a maximum LtV 80% for all new residential house purchase applications.

    Leave a comment:


  • loanarranger
    replied
    Hi Sam-Cat
    Thanks for your kind comments.
    At 60% LtV I doubt that you will have too much difficulty in getting another deal even though it is Barclays , but that is for another day.

    Before leaping into a new deal , do explore what alternative facilities might be available to you from other lenders, do this at least three months before the current incentive expires thereby allowing sufficient time to have a new lender process the application and issue the formal offer and for solicitors to get ahead of the deadline.

    Leave a comment:


  • sam_cat
    replied
    Thank you for keeping us in the loop in these worrying times.
    Just thankful that I am sat on ~60% LTV before all this, hopefully Barclays wont have any issues giving me another deal (circa 6 months till its due)

    Leave a comment:


  • loanarranger
    replied
    I thought I would share with you a set of stats relating to the dramatic changes occurring within the Residential & Buy to Let Mortgage products.
    On 16th March there were 20000 mortgage schemes available but on 30th March this had shrunk to approximately 11500; a number of lenders have suspended the receipt of new business or amended criteria to allow staff, who are working remotely, to work and provide as best possible to applicants whilst others have been affected by a current change in appetite from Institutional investors , it is the latter that may take time before they are prepared to commit funding to these lenders but hopefully a semblance of normality will return in the coming weeks and for my parti will do my best to keep the Forum appraised of any significant changes,

    Keep well and Stay Safe

    Leave a comment:


  • loanarranger
    replied
    The following lenders have today made announcements governing future lending at least whilst the uncertainty continues because of the Coronavirus and Institutional funding:

    Virgin Money has suspended all new purchase applications across its mortgage range and Remortgage Applications have a maximum LtV of 60%

    Atom Bank Ltd has withdrawn from all elements of mortgage lending

    Platform Home Loans (Owned by Cooperative Bank) is restricting residential mortgages to 80% LtV and withdrawing all Tracker Rates and suspending acceptance of any type of Buy to Let applications.

    Leave a comment:


  • loanarranger
    replied
    I thought I had closed the day on an optimistic note but sadly I have received a communication from Foundation Home Loans that they have withdrawn from lending across its entire range until the situation returns to normality.
    This is disappointing as they were in the minority for providing funding on HMO’s & MUFB using investment valuations , an essential ingredient to extracting release of equity from properties that fell within this category.

    Time now for a glass of wine to recover from the numerous announcements from a number of lenders.

    Leave a comment:


  • loanarranger
    replied
    I am pleased to report that Halifax are introducing tomorrow a limited range of residential mortgage products up to a maximum of 80% and BM hopes to launch revised loans beyond those previously announced.

    Leave a comment:


  • loanarranger
    replied
    Nationwide have also confirmed that for the present their maximum loan for purchase and Remortgage residential home loans will be restricted to a maximum of 75%

    Leave a comment:


  • loanarranger
    replied
    Very sad and bad news for BtL with The Mortgage Works, they have just announced the following :-

    Temporarily pausing new lending at 80% LTV and for HMOs. I am seeking information whether HMO’s are completely out for the present.

    Leave a comment:


  • loanarranger
    replied
    Zephyr Home Loans have advised that they in common with other lenders have restricted lending across its entire funding range to 60%, they make a strange comment in so far as mention that mortgage sourcing systems like Mortgage Brain or Trigold and others may quote a higher figure , as these are automatically updated at least once a day it is down to Zephyr to ensure that the info is indeed correct.

    Leave a comment:


  • loanarranger
    replied
    Coventry has just announced the removal of any lending above 65% Loan to Value.

    I am fearing that the announcements from lenders are gathering momentum and whilst I hope my expectations are proved wrong I suspect that many of the key lenders will follow in the coming days. I will keep the forum updated.

    Leave a comment:


  • loanarranger
    replied
    The two elements of One Savings Bank have today announced the temporary withdrawal from the lending market, this is disappointing as the criteria particularly from Precise offered many advantages to Buy to Let borrowers .

    "One Savings Bank (OSB) and Precise Mortgages are not accepting new applications and putting all applications which have not yet progressed to offer on hold."

    Leave a comment:


  • loanarranger
    replied
    In times of uncertainty, lenders ideally want to be seen to continue lending but at conservative loan to values since if there were to a significant reduction in buyer confidence then Open Market Values will naturally fall and bring about the regrettable risk of negative equity, unfortunately it’s like shutting the stable door after the horse has bolted since until one week ago mortgages were being completed with mortgages of up to 95% for residential and between 75% & 80% for BtL. Therefore new lending reflects a prudent level of lending, unfortunately the majority of lenders as shown in the data I have provided are only accepting Remortgage business so in effect they are shutting up shop.

    As a general manager I well recall the days when borrowers surrendered their keys when interest rates went sky high and economic troubles pulled the rug of many hardworking people and it certainly took over a year for the confidence level to improve from both a lending and willingness to borrow perspective. No one wants to see repossessions occur even with the initial 3 months No evictions etc.

    Many of the relatively new lenders in the market are solely reliant upon Institutional funding and here is the rub , when times are difficult then they either withdraw new investments or price their investment monies with a high risk bias. This has already led to three lenders withdrawing from any type of mortgage lending and will remain closed until the country is over the Coronavirus and normal services are resumed.

    What will make any lending problematic is the absence of valuers physically inspecting property and providing comparables to support their assumed valuations , instead and irrespective of the maximum loan to value being offered reliance has to be placed on Automated Valuation Mechanisms who work on algorithms which take property sales within a radius of say0.25 miles but from experience such valuations seldom mirror the prices being sought and the consequence leads to the loans being adjusted down to bring it into the Max LtV.

    What is deeply troubling for BtL borrowers is the risk that even allowing for the current 3 month payment / rental holidays , the time will come when the economics may prove challenging particularly for tenants to pay the existing agreed rent and pay the rental Arrears over even 6 or 9 months, so the potential of longer rental voids could place Landlords in some difficulties with their lenders. The same however doesn’t apply with residential loans as lenders will do their very best to facilitate solutions where borrowers are experiencing payment problems , certainly the amortisation of mortgage payments arising from the Payment holidays will not make significant payment hikes even though the total amount which is eventually paid will be much higher that the Illustration one received whenthe application was submitted.

    How long the current situation will take to allow normal services is hard to gauge , even being the optimist and assume that this should occur by July I would expect lenders may only start increasing the maximum loan to Values in late Summer or early autumn but for BtL Loans this could be slightly longer. I don’t have a crystal ball so this is my personal assessment, ideally I like everyone hope that we can get back to normality much sooner than mentioned but the market needs to get comfortable that there are no nastiesin the economy which might upset the intent.

    Sorry for the length of the reply

    Leave a comment:

Latest Activity

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  • Mortgage News
    by loanarranger
    The following article has appeared in one of the Mortgage Trade journals reporting on views expressed by the Association of Mortgage Intermediaries an influential trade body within the mortgage industry.

    "Mortgage rates are likely to rise in the first quarter of 2016 as lenders look...
    23-12-2015, 19:43 PM
  • Reply to Mortgage News
    by loanarranger
    To help clarify the changes relating to TMW & Nationwide I am detailing the new LtV’s across both brands.
    Nationwide for Intermediaries
    Max LTV Transaction type
    ...
    01-04-2020, 10:58 AM
  • Reply to Mortgage News
    by loanarranger
    Metro Bank have placed a maximum LtV of 80% across its residential mortgage range.

    Bank of Ireland have dropped the maximum LtV on itsresidential products to 85%.
    01-04-2020, 10:54 AM
  • Reply to Mortgage News
    by loanarranger
    Nat West have just announced that they have placed a maximum LtV 80% for all new residential house purchase applications.
    01-04-2020, 10:45 AM
  • Reply to Mortgage News
    by loanarranger
    Hi Sam-Cat
    Thanks for your kind comments.
    At 60% LtV I doubt that you will have too much difficulty in getting another deal even though it is Barclays , but that is for another day.

    Before leaping into a new deal , do explore what alternative facilities might be available to...
    01-04-2020, 10:43 AM
  • Reply to Mortgage News
    by sam_cat
    Thank you for keeping us in the loop in these worrying times.
    Just thankful that I am sat on ~60% LTV before all this, hopefully Barclays wont have any issues giving me another deal (circa 6 months till its due)
    01-04-2020, 09:46 AM
  • Reply to Mortgage News
    by loanarranger
    I thought I would share with you a set of stats relating to the dramatic changes occurring within the Residential & Buy to Let Mortgage products.
    On 16th March there were 20000 mortgage schemes available but on 30th March this had shrunk to approximately 11500; a number of lenders have suspended...
    01-04-2020, 09:24 AM
  • Reply to Mortgage News
    by loanarranger
    The following lenders have today made announcements governing future lending at least whilst the uncertainty continues because of the Coronavirus and Institutional funding:

    Virgin Money has suspended all new purchase applications across its mortgage range and Remortgage Applications have...
    31-03-2020, 17:10 PM
  • Reply to Mortgage News
    by loanarranger
    I thought I had closed the day on an optimistic note but sadly I have received a communication from Foundation Home Loans that they have withdrawn from lending across its entire range until the situation returns to normality.
    This is disappointing as they were in the minority for providing funding...
    30-03-2020, 18:17 PM
  • Reply to Not paying btl mortgage
    by sam_cat
    https://uk.virginmoney.com/virgin/mo...yment-holiday/

    No idea if that applies to BTL, but certainly no harm in filling it out and also trying to contact them....
    30-03-2020, 17:37 PM
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