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Woolwich Withdraws Btl Products

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Woolwich is to withdraw its 85 per cent LTV buy-to-let (BTL) products from Thursday 28 February.

Citing the need to 'effectively manage the flow of business' as the reason for this withdrawal, the lender is also repricing its 75 per cent LTV range.

Woolwich will be launching a five-year fixed rate and three lifetime trackers to plug this gap, with details as follows;

Five-year fix

Rate of 6.39 per cent at a maximum LTV of 75 per cent, with £995 application fee. ERC's of six months interest at the BTL SVR or fixed rate, whichever is higher. The product allows up to 10 per cent overpayment.

Trackers

Rate of BBR +0.89 per cent with 1.5 per cent application fee (minimum £1,495) and maximum LTV of 75 per cent. There are no ERCs.

Rate of BBR +0.89 per cent with £995 application fee and maximum LTV of 75 per cent. ERCs apply and are six months interest at the interest charging rate for three years. The product allows up to 10 per cent overpayment.

Rate of BBR +0.99 per cent portfolio tracker with fees of £295 per property, a maximum LTV of 75 per cent and ERCs of two months interest at the charging rate for three years. The product allows up to 10 per cent overpayment.

There is also a lifetime tracker specifically for remortgagors with the following criteria, available for rate switchers only:

Rate of BBR +0.95 per cent with no application fee and 75 per cent maximum LTV. ERCs apply and are six months interest at the interest charging rate for three years

Woolwich has also removed the £75 repeat business discount for its existing BTL customers, with the full fee now applicable. The buy-to-let SVR will also be reduced to 7.89 per cent from 1 March

http://www.mortgageintroducer.com/mortgage...TL_products.htm

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If this repricing continues the BTL market will be stone dead in weeks, regardless of sentiment or the wonky 'fundamentals' most BTL muppets cling to. I'd love to say it will be only those who stretched the most who will be in trouble, but given the sheer size of some of the percentage changes involved, I get the feeling pretty much every landlord who has bought in the last 5 years will be reaching for the rubber underpants just around now.

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If this repricing continues the BTL market will be stone dead in weeks, regardless of sentiment or the wonky 'fundamentals' most BTL muppets cling to. I'd love to say it will be only those who stretched the most who will be in trouble, but given the sheer size of some of the percentage changes involved, I get the feeling pretty much every landlord who has bought in the last 5 years will be reaching for the rubber underpants just around now.

Let them sh*t their pants all day - no more than the greedy basta*ds deserve.

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The BTL tower of shit is toppling.

Only the start this news :) , Woolwich = same MBS shit as everyone else. Markets still frozen, looks as though balance sheet lending for BTL is the route forward. If you went into any high street bank 20 years ago, said you wanted to be landlord and had 25% dipper after handing over projections you'd get the commercial mortgage. That's where we're headed...sorry that's where we're now at. :D Good news indeed. Incidentally Woolwich tend to lead as others follow, perhaps it's their relationship with Barclays big brother securitisation arm. If Barclays capital can't do the 'MBS thing' then it is over. :D

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"Okay guys, ideas for way forward please."

"We need to tighten our lending criteria."

"Done - but the balance sheet is the problem."

"We need to offer higher savings rates to get more money in."

"Can't afford to do that."

"Okay, seeing as we are not looking for any more business from BTL investment entrepreneurs (everyone in room guffaws) - how about a margin call on all the existing BTL borrowers."

"What would that raise?"

"A hundred thousand mortgages - we'd probably be able to hit each of them up for 10k - so it would raise a nice round billion."

"Do it."

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The BTL tower of shit is toppling.

Nooo.. all BTL borrowers have made sound long term financial decisions, so I'm sure they can accomodate a small interest rate hike. Besides, property only ever goes up in price because of demand exceeding supply and there's no sub prime in the UK.

So there. Everything's OK...

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"Okay guys, ideas for way forward please."

"We need to tighten our lending criteria."

"Done - but the balance sheet is the problem."

"We need to offer higher savings rates to get more money in."

"Can't afford to do that."

"Okay, seeing as we are not looking for any more business from BTL investment entrepreneurs (everyone in room guffaws) - how about a margin call on all the existing BTL borrowers."

"What would that raise?"

"A hundred thousand mortgages - we'd probably be able to hit each of them up for 10k - so it would raise a nice round billion."

"Do it."

:o they wouldn't would they? ;) What after pumping BTL for the last six months to ensure all the newbie investors, intent on growing their property portfolios, give their gains back in the form of increased deposits over the past six months before it all implodes? The evil ba5tards!

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Let them sh*t their pants all day - no more than the greedy basta*ds deserve.

I believe the preferred phrase is "Eat shit and die" :D Agree with post above, this (new BTL) could be over in weeks. Strange how satire comes true B)

Buy to let investment now over as Nationwide raises deposit requirements to 25%

Nationwide has signalled the death knell for buy to let investors by announcing that it is effectively 'shutting the door' on buy to investment as it raised its deposit requirements (for its best mortgage rates) to 25%. Buy to let investors, who typically revolve their credit agreements and flex more equity out of each property with each 'new deal', in order to increase their portfolio, will be left stunned by this development...

Already reeling by specialist buy to let lender Paragon's announcement that they will no longer lend into the buy to let market, coming some time after their shares were suspended, then re-listed, then continued falling; despite a rights issue that had to be taken up by their rights issuer /underwriter UBS, this news must be devastating to buy to let investors, who have entered the housing market en-masse since 2005.

An industry insider suggested that it was only a matter of time before all lenders closed the doors on buy to let, as in their opinion only rising house prices has kept this new micro - industry alive and with falling prices and yields that did not in most cases cover payments, lenders are refusing new BTL loans in droves and in effect killing off this market.

In what could be described as a vicious turnaround, our industry insider suggested lenders are actively looking to quickly take gains from existing buy to let players, who are too dumb to see the writing on the wall. In a callous move they are accepting buy to let deals with 15-25% deposits in a rush to get as much cash back off investors, in order to improve balance sheets and weather the potential financial storms from the credit crunch which are still to batter UK shores..... ;)

http://firstrung.co.uk/articles.asp?pageid...&cat=65-0-0

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I believe the preferred phrase is "Eat shit and die" :D Agree with post above, this (new BTL) could be over in weeks. Strange how satire comes true B)

Buy to let investment now over as Nationwide raises deposit requirements to 25%

Remember, we're not that sophisticated. Put that 'satire' in bold :lol:

Peter.

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These rates will only be for new loans taken out though won`t they? And if sentiment changes, how many will queue up to be BTL?

By "Margin Call" do we mean the mortgage company changing the terms of existing morgages which they can do according to the terms stipulated in tiny tiny writing which no one reads? Would they increase rates or call in loans? Surely this would be politically sensitive?

Also I just got an Edinburgh property guide throught the door, they are assuring us that banks across the board have stated that they will follow the base rate with their mortgage lending.

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CL,

In what could be described as a vicious turnaround, our industry insider suggested lenders are actively looking to quickly take gains from existing buy to let players, who are too dumb to see the writing on the wall. In a callous move they are accepting buy to let deals with 15-25% deposits in a rush to get as much cash back off investors, in order to improve balance sheets and weather the potential financial storms from the credit crunch which are still to batter UK shores.....

Exactly, over a barrel with their portfolio or their own house as collateral. Besides the losses from the outright fraud side from BTL will mean the lenders will not want to put their on capital at risk any more. The securitisation market is not coming back, just look at the absolute wipeout that is occurring on the US ABX indices as they reflect the deteriorating situation right up to the AAA trash.

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CL,

In what could be described as a vicious turnaround, our industry insider suggested lenders are actively looking to quickly take gains from existing buy to let players, who are too dumb to see the writing on the wall. In a callous move they are accepting buy to let deals with 15-25% deposits in a rush to get as much cash back off investors, in order to improve balance sheets and weather the potential financial storms from the credit crunch which are still to batter UK shores.....

Exactly, over a barrel with their portfolio or their own house as collateral. Besides the losses from the outright fraud side from BTL will mean the lenders will not want to put their on capital at risk any more. The securitisation market is not coming back, just look at the absolute wipeout that is occurring on the US ABX indices as they reflect the deteriorating situation right up to the AAA trash.

TBH mate, I'll fukcin celebrate like EFC winning the league if BTL dies. To me it'll seem like justice, too late I know, given the mess it's caused, but heh, what goes around etc ;)

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CL,

In what could be described as a vicious turnaround, our industry insider suggested lenders are actively looking to quickly take gains from existing buy to let players, who are too dumb to see the writing on the wall. In a callous move they are accepting buy to let deals with 15-25% deposits in a rush to get as much cash back off investors, in order to improve balance sheets and weather the potential financial storms from the credit crunch which are still to batter UK shores.....

Exactly, over a barrel with their portfolio or their own house as collateral. Besides the losses from the outright fraud side from BTL will mean the lenders will not want to put their on capital at risk any more. The securitisation market is not coming back, just look at the absolute wipeout that is occurring on the US ABX indices as they reflect the deteriorating situation right up to the AAA trash.

meant to add this "MBS securitisation not coming back", most havn't picked up on that issue, or the devestating changes it's going to bring. Both Anglea Knight and the FSA guy said it on R4 yesterday. Fact. It ain't coming back for a long time, if ever.

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By "Margin Call" do we mean the mortgage company changing the terms of existing morgages which they can do according to the terms stipulated in tiny tiny writing which no one reads? Would they increase rates or call in loans? Surely this would be politically sensitive?

Some BTL mortgages have a clause in them along the lines of 'We can ask you to pay off some of the mortgage - at any time - to maintain the LTV agreed' Say you got a BTL mortgage at 85% LTV and bought a 100k property with an 85k mortgage. Then, at some later point, the property is deemed by the lender to now only be worth 90k. Your 85k mortgage is more than 85% of the current value so they can insisit on you paying off some of the mortgage (in this example £8500) to get the LTV back to 85%. If you obtained the deposit you originally put in by re-mortgaging your home - or another property you own - and you haven't got any cash - you are going to have to borrow to pay the lender what they want. If you have a highly leveraged portfolio you are in deep sh!t.

Also I just got an Edinburgh property guide throught the door, they are assuring us that banks across the board have stated that they will follow the base rate with their mortgage lending.

Interesting. Who wrote the guide? Is it the Solicitor's Property Centre or whatever it is called in Edinburgh? Have the banks offered some sort of insane guarantee? And, most importantly, the rate is one thing. The terms are another. No point offering a rate say 1% above base if you insist on a 25% deposit.

You may want to kid yourself that the times are not a'changing. But they are. Lending will go back to how it used to be - for a generation or more.

Edited by Lets' get it right

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http://www.citywire.co.uk/News/NewsArticle...nuKey=News.Home

Pre-tax profit at Britannia dipped 12% last year after it stopped its intermediary arm Platform competing in the specialist mortgage market because of low margins on high risk lending.

Britannia’s preliminary results showed pre-tax profits fell £15.2 million to £115.2 million compared with £130.4 million in calendar 2006.

Profits were ‘inevitably lower’ after the decision to cut back on lending lead to a £7.7 million fall in net profits to £49.3 million from £57 million in 2006.

‘In the early part of the year, we saw new competitors offering aggressive prices in parts of the mortgage market that were simply unsustainable,’ said Neville Richardson, Britannia group chief executive.

Britannia was unwilling to take on additional risk without increased rewards and a refocus on traditional lending, Richardson said.

Britannia announced 65 jobs would be cut at its intermediary lending arm Platform on 19 February.

Despite cutting back on lending Britannia's net lending rose to £2.4 billion from £2.3 billion in 2006, while group assets hit a record £36.8 billion.

'At a time when the credit crunch is having a major impact on many financial services companies, we have delivered a robust performance,’ Richardson said.

Retail funding meant Britannia was not reliant on the wholesale money markets and has avoided the worst of the liquidity crunch. According to Britannia its level of short-term liquidity are at historical highs.

The company is expecting a £1.6 million loss on a £5 million investment in structured investment vehicles. The building society hopes to recover this when the investment matures.

Mortgages three months in arrears rose sharply at Britannia to 1.24% up from 0.95% in 2006. The Britannia group has about 250,000 mortgages.

Do platform do BTL ?

Edited by Ash4781

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  • 297 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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