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Nationwide Isn't Bothered By The Budget Changes

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http://www.mortgagestrategy.co.uk/2023731.article

The Chancellor’s move to curb tax relief on buy-to-let mortgages is unlikely to dampen activity in the sector, Nationwide Building Society’s senior economist has forecast.

...

“Activity [in the buy-to-let market] will not be as high as it would have been if this measure had not been introduced,” he says. “But we don’t think it will have a major impact.”

However, the article ends with a concession that this might not be the end of it

Further regulation of the sector is however looking likely, he warns.

...

“If they [the regulators] do anything, it will be around increasing the rental cover ratio required and increasing stress test levels on buy-to-loans,” he says. “[buy-to-let] is likely to become more regulated.”

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it's the landlords' backsides on the line not the Nationwide's as far as I can tell - providing they carry on lending into it then house prices falling don't affect them too much, I would think

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it's the landlords' backsides on the line not the Nationwide's as far as I can tell - providing they carry on lending into it then house prices falling don't affect them too much, I would think

As long as they haven't gotten heavily involved in the real subprime end of things with high LTVs and large portfolios then yeah, I think you're probably right on all of that.

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Some of us were laughing nearly each time Nationwide wheeled out Fionnuala Earley, Nationwide’s Chief Economist, in early 2008-late 2008, about housing market views. So maybe it will all come as a big surprise again. Rinse the BTLers... get more buying now, secured against their own homes.

One here from 2008... May.. (still worrying about inflation too).... 'not going to be like 1990s crash - overblown fears of that - completely different market conditions' - all saved by 0.5% QE FLS etc. People here still crying on about the buyers from early 2000s.

http://news.bbc.co.uk/1/hi/business/7374730.stm

Banks; if they think you are a good juicy mark they will want to sell you money. They will want to lend you money at an inappropriate time. The clever bit about selling is that the seller decides when the intended victim will buy. And the subtle thing about buying is buying exactly when you want to. If you let them suck you in, you could be making fatal mistakes.

Net lending is down, and these forbearance market conditions, are a bit like the reverse of the scrappage scheme which took demand from the future, is for houses, simply storing up inventory to come to market in a rush after some trigger.

In any economic crisis, you can't take your bearings from the mainstream media.

Their sources are often misinformed, guilty of wishful thinking, or actively briefing to put messages of hope to the wider public, despite the reality of things. Perhaps even deliberately to lure those on the side of things into the market, at the very worst time, trying to prop up their own VI.

I think Roosevelt did the same, during the crisis, putting out messages of hope, when the actual situation was still deleveraging. He called it sustaining the morale of the people.

Edited by Venger

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There has been a huge amount of Press fluffing up BTL, with various puff pieces. It will take more than unshouty tax changes to scare off these astute investors, after all they are hardly the sharpest in the draw.

I've got to say, I detect a faint hint of sarcasm in your post.

You must be one of those spiteful, jealous types who is bitter about not having a time-machine and access to some seed capital. For those of us suitably tooled up with devices capable of instigating the required deformation of spacetime, and with some gold bars to boot, it is easy to see your ravings for what they are - an attempt to divert our attention from your shortcomings and detract from the achievement of courageous risk-taking entrepreneurs.

Shame on you.

In other news, when the tw@ts at Nationwide openly turn their back on their BTL baby, then it will be too late to Sell Now, Sell Everything. Hence their willingness to suck in some more dumb money is basically an invitation to anyone with a whit of sense to sell everything now.

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Why does a 'mutual' lend to landlords at all?

Scum. Wolf in sheep's clothing. Don't give them your money.

As you well know ham, because as the 1970s became the 1990s banking stopped being about acting as an intermediary making returns from handling existing money and became a way of extorting wealth, from the society notionally served by the financial sector, by creating money.

As the only way to create money is to make loans, you need to make profitable* loans. With their BMR promise ripping their face off they need profitable lending, and thus willing borrowers. Hence roughly 20% of their lending going to buy-to-let.

It's a mutual in name only. It's a UK mortgage lender. IMO a UK mortgage lender is a large institution with a superannuated IT system that lends too much against houses and then explodes. The clock is ticking.

* Over the short-term, on the assumption that the long-term is the same as the short-term. Good luck with that as a general principle...

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Yes, you have got me bang to rights. Whilst I can buy with cash, I won't because I don't wish to join the retarded, knuckle dragging, mouth breathing half wits, supporting EA's buying commissions to support shameful house prices with a raft of dip sticks willing to throw their hard earned money away. Roll on people that can understand the "market" has long gone. I don't like greedy fools.

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If I wanted to move my savings to a bank that did not promote and fund BTL which would be a good bet?

Have saving in NW. Thinking about moving the,

Assuming from the context that you want the cash to stay in cash, I'll give you my dumb answer. I anticipate that by putting my head above the parapet here it may well get shot off, but I thought about the same thing and in the end went for NS&I. The rates are OK. I suppose you could argue that you're funding Help to Buy, but in my book that is better than funding buy-to-let.

As we've had a relatively recent demonstration that the private banking sector exists at the whim of the Treasury, you may as well cut out the middleman. A better answer is welcome.

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Yes, you have got me bang to rights. Whilst I can buy with cash, I won't [buy] because I don't wish to join the retarded, knuckle dragging, mouth breathing half wits, supporting EA's buying commissions to support shameful house prices with a raft of dip sticks willing to throw their hard earned money away. Roll on people that can understand the "market" has long gone. I don't like greedy fools.

Same here...amazing that the media haven't found a catchy acronym for us - perhaps because we're just not a good "type" of person to be for their propaganda.

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If I wanted to move my savings to a bank that did not promote and fund BTL which would be a good bet?

Have saving in NW. Thinking about moving the,

Hmm. A while ago Handelsbanken didn't do BTL except to business (at appropriate rates). Not sure if that is still the case.

I moved out of NW about 18 months ago.

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Assuming from the context that you want the cash to stay in cash, I'll give you my dumb answer. I anticipate that by putting my head above the parapet here it may well get shot off, but I thought about the same thing and in the end went for NS&I. The rates are OK. I suppose you could argue that you're funding Help to Buy, but in my book that is better than funding buy-to-let.

As we've had a relatively recent demonstration that the private banking sector exists at the whim of the Treasury, you may as well cut out the middleman. A better answer is welcome.

Thanks. Yes perhaps NS&I is the way to go. That is sad. I have a small balance in premium bonds and it does make my day when I get that email saying I've won £20! Thing is, 1.5% tax free isn't that bad nowadays.

I think it just shows how weak the concept of a mutual has become. I used to be all for NW. They seemed OK and had no idea they were pushing out BTL mortgages left, right and center. I wonder how many of their members know where their money gets invested.

Yuk! They do have good PR guys tho.

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Yuk! They do have good PR guys tho.

Aaah! All those type adverts make me sick. Normally banks and insurance companies that offer up some marketing wet dream to present a hugely false life style image... you know they are just $hite because the advert is normally vacant of product substance, just corporate image brain washing. Grrr! So annoying. :angry:

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