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LC1

Btlers Hit With A 2% Rise In Mortgage Rates

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The headline made my heart race, but this initial euphoria was marginally dampened on reading the details - they can easily move penalty free to another provider.... But is this perhaps a sign of things to come? Is it at all significant? Why have the West Brom done this?

(EDIT - Apologies, just seen the West Bromwich thread from 22nd Sept, Mods please delete at your leisure...)

Edited by LC1

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I'm willing to bet most won't move to other lenders because they can't (i.e. other lenders would not lend to them now).

TMW will probably take any that can move as they will finance any new lending with FLS

Edited by koala_bear

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Seems to me that these building societies think short-term. Get the business in no matter what to get the mortgage arrangement fees and for staff to get target bonuses.

Then it is a case of "Oh freck, we can't afford to lend this cheaply!".

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<br />Seems to me that these building societies think short-term. Get the business in no matter what to get the mortgage arrangement fees and for staff to get target bonuses.<br /><br />Then it is a case of "Oh freck, we can't afford to lend this cheaply!".<br />
<br /><br /><br />

consider a CEO of a building society stays in post for 7 years or so, that is how far ahead they look

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Seems to me that these building societies think short-term. Get the business in no matter what to get the mortgage arrangement fees and for staff to get target bonuses.

Then it is a case of "Oh freck, we can't afford to lend this cheaply!".

May be they used to think short term (up to '07-'08), not so much now?

At least they had the relevant clauses in the T&C to do this which is an advance on some...

No new lending (or bonuses) unless they hike the rates on the BTL.

I think the main point is that the management view BTL as less benign going forwards. Some good risk managers recently hired?

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<br /> Some good risk managers recently hired?<br />
<br /><br /><br />

more like the institutional corporate bonds market dictating terms IMHO

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I'm willing to bet most won't move to other lenders because they can't (i.e. other lenders would not lend to them now).

TMW will probably take any that can move as they will finance any new lending with FLS

Exactly. Slowly it seems things are getting tighter for the over borrowed?

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