Drummer Posted August 18, 2016 Share Posted August 18, 2016 http://www.ftadviser.com/2016/08/18/mortgages/mortgage-products/skipton-lowers-buy-to-let-rates-by-up-to-bps-41ZfpDa75MqPuSQ19BcUaN/article.html I know people are disappointed with lowering savings rates so here is some good news to offset that. I'm sure the savings landlords get will be passed on to us renters. Quote Link to comment Share on other sites More sharing options...
Patient London FTB Posted August 18, 2016 Share Posted August 18, 2016 Smacks a bit of desperation by Skipton. Diminishing pool of BTL borrowers so they're competing for them by cutting their margins to the bone. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted August 18, 2016 Share Posted August 18, 2016 As the man above says...perhaps a sign of how desperate they are to keep this bubble going. I have move with them...it will be moving shortly. Quote Link to comment Share on other sites More sharing options...
Si1 Posted August 18, 2016 Share Posted August 18, 2016 Smacks a bit of desperation by Skipton. Diminishing pool of BTL borrowers so they're competing for them by cutting their margins to the bone. This It is in their nature. One trick pony Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted August 18, 2016 Share Posted August 18, 2016 More HPI in the pipe line. more boomers buying ip parts of northen towns at ridiculous prices. Hammon and Dis-May are not going to roll back the damage Osborne and Cameron have done...they're going to make it much worse by the looks of things. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted August 18, 2016 Share Posted August 18, 2016 No 120% mortgages here lads, but they are lending 100% more than a house is worth. What can possibly go wrong. Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted August 18, 2016 Share Posted August 18, 2016 It is in their nature. One trick pony As per the Skipton website, Moody's (Baa2) and Fitch (A-) both think that Skipton are only one small misadventure from losing their investment grade credit rating. Quote Link to comment Share on other sites More sharing options...
eek Posted August 18, 2016 Share Posted August 18, 2016 (edited) As per the Skipton website, Moody's (Baa2) and Fitch (A-) both think that Skipton are only one small misadventure from losing their investment grade credit rating. I doubt it would take a misadvantage. The passage of time will be enough.... Edited August 18, 2016 by eek Quote Link to comment Share on other sites More sharing options...
Confusion of VIs Posted August 18, 2016 Share Posted August 18, 2016 Spookily when I looked at this the banner ad displayed was for a BTL mortgage at 1.5% Is the thread topic used to target advertising. Quote Link to comment Share on other sites More sharing options...
Si1 Posted August 18, 2016 Share Posted August 18, 2016 (edited) As per the Skipton website, Moody's (Baa2) and Fitch (A-) both think that Skipton are only one small misadventure from losing their investment grade credit rating.I've had a few aquaintences, social or professional, who worked in various everyday white collar (IT, operations, business analysis) roles in the small to medium lenders in West Yorkshire - YBS, B&B, LBS, Skipton - individually and collectively they have always been hpi bulls, right to the bitter end, wth their own family breakdowns on the alter of property ownership, as well as institutional in the case of B&B or all of them in the case of government bailouts. I suspect that they believe B&B, NR implemented a good business model badly rather than there being anything intrinsically wrong with forever zirp. Edited August 18, 2016 by Si1 Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted August 18, 2016 Share Posted August 18, 2016 Skipton aren't actually that balls deep in the BTL game, relative to some lenders. Source: Skipton 2015 annual report Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted August 18, 2016 Share Posted August 18, 2016 In the half-year to 30 June 2016, for every £2 profit after tax that they made in the lending game, they made £1 in the estate agency game. Source: Skipton 2016 HY financial report Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted August 18, 2016 Share Posted August 18, 2016 (edited) The strength of the Society is further enhanced through its estate agency operations, Connells, that operates under a number of different brands including Connells, William H Brown, Barnard Marcus, Sharman Quinney and Peter Alan. In 2015, Connells acquired Gascoigne Halman estate agents and made a number of other small acquisitions of estate agency or letting businesses. Connells reported strong profits from the sale of houses, lettings, surveys and valuations and mortgage services and we believe it is well positioned to continue generating strong profits that support the Society. Source: Skipton 2015 annual report, emphasis added. Edited August 18, 2016 by Bland Unsight Quote Link to comment Share on other sites More sharing options...
Frugal Git Posted August 18, 2016 Share Posted August 18, 2016 No 120% mortgages here lads, but they are lending 100% more than a house is worth. What can possibly go wrong. Haha - yep. In my own definition of value/worth, if someone is taking a 90% mortgage in parts of the SE, the mortgage is 360% of the value of the home! (320k house that's really 'worth' around 80k, 32k deposit, 288k loan). Quote Link to comment Share on other sites More sharing options...
Patient London FTB Posted August 18, 2016 Share Posted August 18, 2016 Wow, didn't know they owned EAs. Interesting - guess if they help keep lending going that keeps transactions up for their EA operation! Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted August 18, 2016 Share Posted August 18, 2016 Our strategic objectives are to grow our mortgage and savings business, provide high quality financial advice, and maintain a significant presence in estate agency through the Connells group, in order to generate profits that can be used to strengthen the Society’s capital position for the benefit of members. Source: Skipton, 2016 HY financial report "Capital position". The society is a legal entity and it has its own money. When it lends, it lend this money and money it has borrowed from its members (i.e. customer deposits) and the Skipton also borrows a little from other sources. If lender's capital position is weak it means that if lots of its loans sour, the society's ability to cover losses with its own money is fairly limited and serious losses would impair its ability to give depositors their money back, should they want it back. I love the idea that a mutual has lent adventurously enough that they feel, as they say themselves, that it might be wise to "strengthen" their capital position. Given that almost all the money that they've lent is lent against residential property it's quite amusing that the game plan to sort things out is to get into the estate agency game. I guess this means you could be someone who wanted to own a home but had a BTL investor armed with a Skipton mortgage outbid you for the house. If you then ended up renting that same house you might have ended up paying out hundreds of pounds of fees to a Skipton group letting agent. Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted August 18, 2016 Share Posted August 18, 2016 Wow, didn't know they owned EAs. Interesting - guess if they help keep lending going that keeps transactions up for their EA operation! The mutuals have made a lot of 'compromises' on their founding principles since the mortgage market was opened up to all and sundry (including the clearing banks) back in the 1980s. If you're an executive at a mutual I am sure these compromises make perfect sense. For an outsider looking to get a house for less than a kidney and the soul of your first born, these compromises are perhaps a bit more problematic Quote Link to comment Share on other sites More sharing options...
Eddie_George Posted August 18, 2016 Share Posted August 18, 2016 Deals include a two-year fixed rate at 1.89 per cent to 60 per cent LTV and a five-year fix at 2.99 per cent up to 70 per cent, both with £1,995 fees. That's one juicy fee. Can I put it on my credit card? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted August 18, 2016 Share Posted August 18, 2016 Wow, didn't know they owned EAs. Interesting - guess if they help keep lending going that keeps transactions up for their EA operation! A lot of the banks/finance companies own chains of EAs. Should be illegal. No one buying should use them. The UK is the most corrupt place on earth AFAIKS Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 18, 2016 Share Posted August 18, 2016 Carney . Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted August 18, 2016 Share Posted August 18, 2016 Source: Skipton 2015 annual report, emphasis added. I know they owned EAs but I didnt realise it was so many. Talking about a conflict of interest. Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted August 18, 2016 Share Posted August 18, 2016 (edited) £1,995 fee for a 2year fix. Does the BTL'r just roll that into the loan every 2 years? I need to do some capital repayment sums. Or are they Interest only? Edited August 18, 2016 by Ash4781 Quote Link to comment Share on other sites More sharing options...
zugzwang Posted August 18, 2016 Share Posted August 18, 2016 I know they owned EAs but I didnt realise it was so many. Talking about a conflict of interest. Salvador Dali imagined a Tower of Babel being constructed from the top down with labourers on each floor extracting nourishment from the defecations of the floor above. He could equally have been describing the UK economy. Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted August 18, 2016 Share Posted August 18, 2016 £1,995 fee for a 2year fix. Does the BTL'r just roll that into the loan every 2 years? I need to do some capital repayment sums. Or are they Interest only? Last time I saw legit numbers, about 80% of BTL is on interest-only terms. Every time I've checked on these 'deals' the option to capitalise the fee (i.e. roll it into the loan as you suggest) exists. I've never seen any numbers on what proportion of BTL borrowers capitalise fees in this way, but neither have I looked very hard or very often. Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted August 18, 2016 Share Posted August 18, 2016 £1,995 fee for a 2year fix. Does the BTL'r just roll that into the loan every 2 years? I need to do some capital repayment sums. Or are they Interest only? Worth bearing in mind volumes of BTL remortgaging are usually comparable to or greater than the volumes of new loans for purchase. BTL is festival of fees for the lenders and this move to a treadmill of 2 year fixes must be generating a lot of income. Quote Link to comment Share on other sites More sharing options...
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