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gruffydd

Db Mortgages Withdraws Entire Uk Subprime Mortgage Range

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Hi Gruffydd

Good post - thanks for the link. I'm interested to hear what's happening in your neck of the woods: I heard a couple of reports last week of the Ireland effect being felt in West Wales. Here in the South things are much slower on the property front and indeed there is lots of activity on PropertySnake, but how is it in your region?

TD

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Hi Dragon,

I'm seeing a stagnant market with price reductions coming through here in Ceredigion.

This is home buying season here - with all the visitors looking for holiday homes, etc., but the market is dead and visitor numbers are way down as well, which helps. Seeing fewer of the I wear a Howies T-shirt twits this year - hopefully they've all gone down to Cornwall.

Holiday rentals have collapsed in places and long may it continue. Seeing more second homes coming on the market. And with severe weather forecast for next week...

Throughout West Wales, things are the same as far as I know - from Pembrokeshire to Anglesey.

Interesting times ahead :)

Edited by gruffydd

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www.unityhomeloans.co.uk

http://www.unityhomeloans.co.uk/files/prod...gust%202007.doc

Product Withdrawal Notification 10th August 2007

Due to current adverse movements in the capital markets, our current product range is closed to all new business with immediate effect.

All existing products have now been withdrawn and we are unable to accept any new business. We are extremely sorry for any inconvenience this may cause you.

We shall endeavour to release a new product range in the coming weeks.

In the meantime, many thanks for your continued support of Unity Homeloans

http://64.233.183.104/search?q=cache:BiSpo...;cd=8&gl=uk

New Products

8 May 2006

Product round-up

Key features of recently launched or relaunched mortgage products

Product: Three-year stepped discount mortgage

Description: 1.75% discount off SVR in year one, 0.5% in year two, 0.25% in year three

Rate: Initial rate of 4.75% (light range)

Max LTV: 95%

Arrangement fee: £499

Procuration fee: Refer to lender

Redemption penalty: 6% for three years

Other: No overhanging ERCs

Contact: www.unityhomeloans.co.uk

No Subprime in UK...

Edited by alabala

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Duffy adds: “The question is also whether we are going to make it through the next few months without one of the big players withdrawing? That’s the $64m question.”

But Malone says that he thinks the big players like Edeus, GMAC-RFC and Kensington will be okay.

We shall see!

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QUOTE

Duffy adds: “The question is also whether we are going to make it through the next few months without one of the big players withdrawing? That’s the $64m question.”

But Malone says that he thinks the big players like Edeus, GMAC-RFC and Kensington will be okay.

We shall see!

My understanding is that the sub-prime lenders don't lend their own money. The initial loan is funded on a short term basis by investors. When the loan is then securitised (or sold on to another lender) the short term investor is repaid by the longer term investor.

All the sub-prime lender does is bring this all together and skim off the top.

The loan needs to be provided at reasonable rates as the 'sub prime' customers are already struggling with their finances before they apply for the mortgage, so the higher the rates the less chance they will be able to repay.

This looks to me like a business model that might only work in a low interest rate environment (higher rates = more likelihood of default = reduced investor confidence = less cash available = higher rates)... unless of course house prices come down very quickly. :unsure:

This combined with the FSA appearing to have finally woken up to the dangers of lending to everyone (GMAC's strap line is 'mortgages for everyone' :rolleyes: ) I think will bring interesting times for even (or especially) the bigger lenders in the subprime market.

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