Wednesday, May 30, 2007
Wait for the profit warning !
Daily Telegraph: Investec buys UK's sub-prime biggest mortgage lender
Investec, which is best known in the UK for its investment banking division, said that its "stronger balance sheet, access to lower cost of funding, and capital markets expertise, together with Kensington's recognised brand, established distribution, innovative product range, prudent risk management and track record for service excellence, create a strong combination for the growing non-standard mortgage marketplace."
Posted by dobber @ 08:13 AM (189 views) Add Comment
5 Comments
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1. Sevinsins said...
This is a dangerous game to play, tenants are mobile landlords are not. Those on fixed IR rates wont have to up rents and will retain tenants, those who up the rent will push tenants out losing them even more money until the property is filled ...boom! the crash
2. Paulos said...
But again I ask, how is this possible - I thought we were different to the US and didn't have a sub-prime mortgage market!!!
3. Orwell said...
A contact of mine says :
"...To all BTL tenants- do a social favour, take a long Assured Shorthol Tenancy, then apply to the Rent Assessmernt Committee for a reduction in the rent. You may even get Legal Aid to do this.
This may well be the most sensible and quickest way of bringing this specualtion in basic human commodity to an end..."
Whilst not advising this necessarily, I sort of understnad what they mean?
4. converted lurker said...
This is more significant than most will realise, at that price it's been 'given away'. This is a lender, that can lend to anyone - poor credit or otherwise. Hundred of employees, 4-5 separate lending divisions, good broker links, competitive products...at that price (given its a mixture of shares and cash) it's break up value and nothing more IMHO.
5. fahrenheit451 said...
Looks like Investec have spotted a cash cow, and now they are going to milk it.
1) Low start morgages -> High loan to value - -> big jump in interest rate when the Standard Variable Rate kicks in.
2) Morgage payments in arrears, forced sales or remorgage deals, done privately with Investec or partner companies.
3) Otherwise its the auction house where the Property Owner and Morgage Lender both loose out to a new Purchaser with New Lender
Best advice is ...
If you have an existing mortgage with Kingston, move it quick to another lender and just pay the penalty charges.
Or just sell up ... and fuel the crash boomm diddy booommmm ccrrraaaassssshhhhhh !