Jump to content
House Price Crash Forum
Sign in to follow this  
crown

Ouch Ouch Ouch Another Sub Prime Increase

Recommended Posts

Victoria

http://www.housepricecrash.co.uk/forum/ind...mp;#entry735443

Kensington

http://www.housepricecrash.co.uk/forum/ind...mp;#entry735622

and now DB mortgages

http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=148258

DB Mortgages to increase sub-prime rates by 1 per cent

Tanya Powley - 17-Aug-2007

DB Mortgages says it will be increasing rates on its sub-prime products by 1 per cent when it relaunches its range on August 20.

The lender says it will also be making changes to its near-prime range which sees it increase the rate of its full status product by 0.20 per cent and self-cert by 0.35 per cent.

This comes after the non-conforming lender announced earlier this week that it will be tightening its lending criteria on its sub-prime and light buy-to-let products. The move saw it no longer accept first time buyers on its sub-prime mortgages. It also said it would be withdrawing the self-cert option.

DB Mortgages says it will no longer consider those who have missed payments in the last three months for all sub-prime schemes and second charges will no longer be accepted either.

This week has also seen Victoria Mortgages announce that it would be increasing rates on its sub-prime products by as much as 2.5 per cent, whilst Mortgages Plc said it has re-priced some of its higher-risk loans by more than 1 per cent.

Share this post


Link to post
Share on other sites
Victoria

http://www.housepricecrash.co.uk/forum/ind...mp;#entry735443

Kensington

http://www.housepricecrash.co.uk/forum/ind...mp;#entry735622

and now DB mortgages

http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=148258

DB Mortgages to increase sub-prime rates by 1 per cent

Tanya Powley - 17-Aug-2007

DB Mortgages says it will be increasing rates on its sub-prime products by 1 per cent when it relaunches its range on August 20.

The lender says it will also be making changes to its near-prime range which sees it increase the rate of its full status product by 0.20 per cent and self-cert by 0.35 per cent.

This comes after the non-conforming lender announced earlier this week that it will be tightening its lending criteria on its sub-prime and light buy-to-let products. The move saw it no longer accept first time buyers on its sub-prime mortgages. It also said it would be withdrawing the self-cert option.

DB Mortgages says it will no longer consider those who have missed payments in the last three months for all sub-prime schemes and second charges will no longer be accepted either.

This week has also seen Victoria Mortgages announce that it would be increasing rates on its sub-prime products by as much as 2.5 per cent, whilst Mortgages Plc said it has re-priced some of its higher-risk loans by more than 1 per cent.

It will not matter if they increase their rates on sub prime loans to 25%. The people they loan to just dont repay. The thing they need to do is stop lending to the sub prime brigade. There business is failed. End of story.

Share this post


Link to post
Share on other sites

Looks like they are all blinking at the same time. Collusion? Or similar businesses coming to the same conclusion at the same time?

Mr Convert, I think tt will make a difference because they all do "affordability" checks. What was the friend of the insane borrower is now their enemy. However, your point is well made because on a self cert mortgage you just adjust the fake income until it is affordable, but there are still sub-primers who have genuine proof of income, not all sub-prime are self cert. The screws are definitely tightening on the sub prime market, and it will make it harder for them to get a property, but that will just hasten the crash as we all know.

I worked for one of these companies on a 6 month contract a while back. Scary place for a prudent kind of guy like me.

DB Mortgages says it will no longer consider those who have missed payments in the last three months for all sub-prime schemes and second charges will no longer be accepted either.

This is pretty crucial as it means they are also not offering their "better" products to recent defaulters. Better products are cheaper, so that puts the rates up even more.

Last time I looked, Britannia BS allow all their existing borrowers to go to a new offer when they come off the old one without having to re-apply. I wonder how many other lenders do that, or do they do an affordability test?

I wonder more to the point, whether Britannia et al are going to stop doing that and push everyone over the edge, forced repossessions, cats and dogs lying down together, plagues of boils, locusts and WAGs in every country.

Share this post


Link to post
Share on other sites
Looks like they are all blinking at the same time. Collusion? Or similar businesses coming to the same conclusion at the same time?

Mr Convert, I think tt will make a difference because they all do "affordability" checks. What was the friend of the insane borrower is now their enemy. However, your point is well made because on a self cert mortgage you just adjust the fake income until it is affordable, but there are still sub-primers who have genuine proof of income, not all sub-prime are self cert. The screws are definitely tightening on the sub prime market, and it will make it harder for them to get a property, but that will just hasten the crash as we all know.

I worked for one of these companies on a 6 month contract a while back. Scary place for a prudent kind of guy like me.

This is pretty crucial as it means they are also not offering their "better" products to recent defaulters. Better products are cheaper, so that puts the rates up even more.

Last time I looked, Britannia BS allow all their existing borrowers to go to a new offer when they come off the old one without having to re-apply. I wonder how many other lenders do that, or do they do an affordability test?

I wonder more to the point, whether Britannia et al are going to stop doing that and push everyone over the edge, forced repossessions, cats and dogs lying down together, plagues of boils, locusts and WAGs in every country.

It will be interesting to see if there are mass evictions of the chav population. If there are, i also wonder at the impact on the housing market. I don't know this, but I'm assuming the sub prime crowd buy houses mostly below (say) £200k? If so, it might be nice for the FTB population to get some houses at a repo discount. Will that be part of a wider crash or perversely might it stimulate the market as mainstream FTB come in and sub prime people are forced out?

Share this post


Link to post
Share on other sites

Credit tightening is like the hangman's noose--it will choke the life out of the miracle economy which has been driven by these kinds of irresponsible loans. With HPI now no longer a given the lenders will not be so keen to risk money. No lender is going to advance cash to a borrower who pulls a number out of the sky to represent income or who goes for a 10X multiple based on the "liklihood" that capital appreciation will act as a buffer if it all goes Peter.

As Al Greenspan's grand daughter Melissa allegedly said: This house price thing is, like, so over.....

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 355 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.