Bm Cutting Back On Subprime

[dellboy]

Dear all,

With immediate effect *** Mortgage Services will no longer be accepting day 1 re-mortgages for Birmingham Midshires. It is now a requirement on the Birmingham Midshires application form that the broker must disclose the date the property was originally purchased; by giving false information and leading the lender to believe the applicant has owned the property longer than they have, we are committing mortgage fraud and put the firm and our clients at risk.

[dellboy]

New build valuations are changed as well

Dear all,

For your information please see below (taken from the Mortgage Express website)

We're making a change to our valuation policy for new build re-mortgages 04/02/08

Given current market conditions, and to enable us to ensure our customers are adequately protected, we're making a change to our valuation policy for new build re-mortgages.

From Monday 4th February 2008, re-mortgage offers on new builds will be based on the lower of:

· purchase price less discount

or

· valuation

We're still committed to lending on new builds, and to offering early re-mortgages - we have simply refined our criteria to ensure that our policy is clear, fair and transparent.

[Ursus]

This in light of Panorama I wonder

[dellboy]

If I recall correctly, Halifax was refering BTL mortgage applications to Birmingham Midshires before they started offering them direct. I could be wrong here. Birmingham Midshires are clamping down:

Further to our email last week I am sure you are now aware that Birmingham Midshires no longer offer day 1 re-mortgages.

...

The official line that we have received from BM is that any mortgage application submitted to them on or before 17th December 2007 will be unaffected by this change in criteria so your case should complete as expected.

...

We have heard reports of clients receiving letters from BM stating that offers may be withdrawn as a result of this change. ... as it appears the letter is an automatically generated letter from BM and may not actually affect your application.

...

So they're backdating their rules to include any application for a BTL mortgage after 17th December. No doubt this will kill a certain proportion of sales still going through. Remember that any auction purchase that doesn't complete in the required 28 days is also subject to a hefty penalty and loss of deposit. This will hurt, but only if they lied or their sums didn't add up in the first place. The good news is that these changes will make the BTL market more professional in the long-run. Naturally, there has to be a culling of BTLosers first.

[OLDFTB]

Can't we organise a rescue package, a bailout if you like, for the BTL losers?

[dellboy]

Can't we organise a rescue package, a bailout if you like, for the BTL losers?

A bailout? Of course! Richard Branson-style! Wait until they are so desperate they actually go and get the barrel themselves.