Monday, Sep 29, 2008
Mortgage Express Shut
Mortgage Express: Urgent - Mortgage Express currently closed to new business
Following the decision to take the mortgage assets of Bradford & Bingley Group into temporary public ownership, Mortgage Express is now currently closed to all new business. We will not accept new applications for mortgages or further advances and re-offers will no longer be made.
Posted by renting2 @ 02:21 PM (4019 views) Add Comment
28 Comments
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1. paul said...
And who is Mortgage Express now?
2. mark said...
look at the latest PDF file under Economic Outlook page in their website....
3. paul said...
Oh. Mortgage Express = Bradford & Bingley.
Well that's a given then isn't it?
4. paul said...
Or is it that the fact that its closed to new business. I see. So by implication the mortgage book may well be run down.
BTL RIP.
5. This comment has been removed as it was found to be in breach of our Blog Policies.
6. techieman said...
yes ME - BTL arm of BB. Presumably also means no new remortgaging from other lenders who have themselves left the BTL market.
7. jack c said...
Guy's the demise of BTL lending is taking place right under our noses - the more companies who are excluded from the market the less chance there is of re-mortgaging elsewhere because the remaining lenders will not want over exposure.
The BTL market is set to implode beyond the most bearish predictions previously posted on this site.
8. paul said...
I'm not sure I'm fully getting this though. If I had a BTL mortgage (I haven't), where can I still go?
9. george monsoon said...
Par for the coirse really..
10. renting2 said...
Paul - Following still open for BTL business: (Max LTV available 85% but not with all)
All & Leic
B of Ireland
Bristol and West (Same as above really)
Chelsea
C & G
Cheshire
Coventry/Godiva
Ecology BS
Furness
Heritable Bank
Ipswich BS
Kensington
Leeds BS
National & Provincial
National Counties
Natwest
Newbury BS
N/Rock
Nottingham BS
Platform
Principality
Progressive
RBS
Saffron
Scarborough BS
Shepshed BS
Standard Life
Stroud & Swindon
The Mortgage Works
UCB
Woolwich
11. jack c said...
paul said..."I'm not sure I'm fully getting this though. If I had a BTL mortgage (I haven't), where can I still go?"
The choice is diminishing by the day - see www.emoneyfacts.co.uk/news/buy-to-let-news.aspx as a starting point if you want to discover more. The problem is meeting the lenders critreria ie valuation (falling) rental assesments etc... - many BTL's were appartments in a block so many lenders dont want over exposure to a single block consequently the demise of Mortgage express makes it even more difficult to secure a deal.
BTL (IMHO) is heading for the history books
12. beartil2010 said...
Can you add %age of the BTL market to that list of vendors?
13. techieman said...
Paul if you have one with ME (god that sounds a bit medical) then you will still have one. If its on a fixed deal I assume (since im no expert) once that deal runs out it just reverts to MEs SVR (same thing as with NR) and thats likely to increase quite a bit. So thats when you need to look around to re-mortgage via Renting2's list - which will presumably get smaller. I would like to see a graph of the amounts of capital available for BTLrs. I am assuming it will have gone from infinity to a severe contracting constraint.
The point is if they cant re-mortgage economically they must liquidate or remain loss bearing and in it for the long haul - simplification because depends where you got in, but the gist is there.
14. renting2 said...
Forgot HSBC :-(. There may be a couple more.
Sorry unable to give by market share.
15. str 2007 said...
Surprised any are still offering 85% LTV.
Any BTL mortgages taken out at that level since 2006 must be 100%LTV's now at least and that's taking Haliwide Ave. falls. Given alot of BTL mortgages in last 2-3 years will have been for apartments which have had a 20%+ hit, well I'll leave you to do the numbers.
Margin calls from lenders anyone ?
16. beartil2010 said...
Yes there will be a window of time where the BTLers are trying to sell their properties with the most equity I would guess, to provide a (rapidly thinning) capital cushion as those losses continnue. I would say that now the mortgage funding market is rapidly drying up, the lack of activity means they can't even sell the ones with a reasonable amount of capital in and will find themselves unstuck very quickly.
Just think about the main numbers - a 'conservative' BTLer will have 30% equity. They will lose all of that, and will not be able to remortgage any of their properties. Hey presto; bankruptcy and supply of properties onto the market.
So Techieman - surely even the volume of capital available is irrelevant if the mortgage ratios are maintained? Or conversely, any BTLer who actually has decent equity coverage - say 50% before the crash - will be able to remortgage anyway?
17. jack c said...
BTLer's who have 35% + equity should (IMO) still be able to re-mortgage OK, but as prices fall it's going to get more and more difficult - the thing that a lot of people are going to find out in the near future is that they have a very illiquid "Asset"
(Halifax have today scrapped 95% LTV on ordinary residential mortgages - a further taste of things to come)
18. techieman said...
Beartil 2010 - yes i would agree it makes no odds because of the restrictions Jack has alluded to (hes got his finger on this BTL pulse i think - albeit a pretty weak pulse!). In any case I am just interested as an indicator..... I love a chart!
19. techieman said...
Actually when you think about it as a market this is the exact opposite of what they should be doing. On the way up restrict LTVs to stop the bubble... on the way down restricting them guarantees the falls...pass the parcel with a grenade.
20. renting2 said...
Some BTLers who paid off their own mortgage in the process may find the only route is to remortgage their own home again to fund the shortfalls. But will a lender want to get involved in that sort of process?
21. beartil2010 said...
Probably not and they'll have to disclose. It's all about total exposure - any BTLer with 30% or less capital is toast. And quite possibly those with 30-35% or even 40% by the end of this process.
22. renting2 said...
I look back on some of the conversations I had with serial BTLers. They were running around with reckless abandon ignoring may advice to be careful. Leaving good paid work for the easy life. I know 2 or 3 who would quite happily sign up to a 2 or 3 year fixed rate then repay it plus the hefty early payment penalty a few months later just so as to release more money for another purchase. 'My broker's great!' they chanted as they bought yet another new build flat and looked down with pity at my non-adventurousness. 'You'll miss the boat forever!' they insisted.
Don't see them any more apart from one who has had to start full time work again or lose the lot (probably just delayed it).
I don't think they had any comprehension of the actual figures involved and how big they really are to the small person. I hope that recklessness with vast sums of money is now a thing of the past.
23. jack c said...
@renting2 (Monday, September 29, 2008 04:51PM) - 'You'll miss the boat forever!' they insisted - yep nothing like missing the Titanic on it's last journey.
24. Herbie said...
@ 13. renting2
The CML don't give market share but give rank order according to Balances Outstanding and Gross Advances. You'll note NR, ME, Paragon and B Mids were all pretty big players
http://www.cml.org.uk/cml/statistics
25. Whostolemyendowment said...
{best shouted in dodgy west country accent...} Icebeg! Iceberg dead ahead!
26. Mickc said...
I agree that a lot of landlords may now be panicking a tad and may try to off-load. However, I’m not sure there are too many that have much equity on any of their properties. The trend over the last 10 years seems to have been to depend on property price increases combined with a magnolia based quick re-furb to increase equity and then use this as a deposit for the next purchase. I’m also always surprised how many landlords have not even considered capital gains tax....a real house of cards ready to collapse.
27. Mr T said...
i have a 100 houses all brought 7 years ago below market value from distressted sellers/......i got 14 million pounds worth of equity :-)))))))))))))))))))))))))))))))))))))))))))) nice
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