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Killer Bunny

Emails From A Mortgage Broker

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I am in practice as a Financial Adviser (Chartered Financial Planner). These are the emails that happened this morning:

Him to me:

Subject: Fantastic product

Importance: High

Morning All

Just thought I would let you know of a great product that has just become available to me on BTL mortgages.

2 year tracker with a current pay rate of 5.29%, there are no early redemption charges at all, and you can borrow up to 80% LTV with NO PROOF of rental income. The only downside is the 2.5% arrangement fee but in a time when rental yields are low this product is one which has to be moved on very quickly.

If you are or you know anyone who is interested please do not hesitate to contact me urgently as I have been told that this product will not be around for long.

regards

Me to him:

Subject: RE: Fantastic product

So that’ll be 6.54 then.

As rental yields are low, why should someone do BTL? (!!!)

...

With kind regards,

Him to me:

Not really! Only if you choose to add the fee to the loan, but even then you are only increasing the debt and still paying at 5.29%, as I am sure you understand.

[FP: Well that's alright then! Why didn't I think of increasing the debt...?!!!]

Low rental yields are effecting people who already own BTL property, and therefore if they are due to remortgage then this product could help them. I am not for one minute suggesting that people jump onto the BTL bandwagon just because of this product, merely offering my advice and exclusive products to assist those who need it.

...

Regards

XXXXX

:blink:

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It's just like the interest free credit card balance transfers. 2 years ago, it really was free. Now Egg charge a 3% transfer fee, and the fees are going up and up. Just deals designed to trap the stupid.

Financial innovation at all levels is purely about obfuscating the truth from the customer and making it more and more difficult to compare products.

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would that be the A&L product range?

http://firstrung.co.uk/articles.asp?pageid...&cat=44-0-0

Lenders see BTL as a good way of getting in as much front end cash as poss, with the cash already originated for mortgage lending, that they can't then package as MBS. Thinking could be that if it is to lie on balance sheet then the bigger the deposits the better and where better to pick off big deposits than from those deluded enough to stay in BTL - despite all the shit that's hit the fan. :blink:

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Guest DissipatedYouthIsValuable

Thankyou for our daily succour, Master.

May Renting be upon you.

And Gold to the Moon.

Edited by DissipatedYouthIsValuable

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would that be the A&L product range?

http://firstrung.co.uk/articles.asp?pageid...&cat=44-0-0

Lenders see BTL as a good way of getting in as much front end cash as poss, with the cash already originated for mortgage lending, that they can't then package as MBS. Thinking could be that if it is to lie on balance sheet then the bigger the deposits the better and where better to pick off big deposits than from those deluded enough to stay in BTL - despite all the shit that's hit the fan. :blink:

The root of much evil. Were commissions and arrangement fees spread evenly over the life of financial products, I think that we might have avoided the endowments problems, pension mis-selling, payment protection scams and absurd HPI.

p-o-p

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2 year tracker with a current pay rate of 5.29%, there are no early redemption charges at all, and you can borrow up to 80% LTV with NO PROOF of rental income. The only downside is the 2.5% arrangement fee but in a time when rental yields are low this product is one which has to be moved on very quickly.

5.29 + 2.5 = 6.54 ?? :huh:

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The root of much evil. Were commissions and arrangement fees spread evenly over the life of financial products, I think that we might have avoided the endowments problems, pension mis-selling, payment protection scams and absurd HPI.

p-o-p

no, methinks this is a desperate 'cash grab' by lenders, they've originated cash from the markets months back, (pre credit crunch), they can lend it out on individual mortgages, but know they can't flog it as MBS unless it has 15-25% deposits and in some ways BTL is a better risk as a bond; given the element of income and default rates are low versus the risk. However, I reckon they may have to keep the new loans on balance sheet therefore they want as much of a deposit and arrangement fee as poss. As a BTL player you've got to be pretty thick to 'buy in' at these fees and with these levels of deposits ...good ;)

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no, methinks this is a desperate 'cash grab' by lenders, they've originated cash from the markets months back, (pre credit crunch), they can lend it out on individual mortgages, but know they can't flog it as MBS unless it has 15-25% deposits and in some ways BTL is a better risk as a bond; given the element of income and default rates are low versus the risk. However, I reckon they may have to keep the new loans on balance sheet therefore they want as much of a deposit and arrangement fee as poss. As a BTL player you've got to be pretty thick to 'buy in' at these fees and with these levels of deposits ...good ;)

I have just got a word from one of our lenders that the following two tracker products are being withdrawn. If you would like to book the funds for either of these products, please contact me by midday on Wednesday 5th March.

2 year stepped tracker starting at 4.54% in year one (bank base rate of 5.25% minus 0.71%) and 5.04% in year two (bank base rate of 5.25% minus 0.21%)

° Borrowing ability - up to 80% LTV

° 110% interest cover

° To work out the maximum you can borrow, simply multiply your

rental income by 240.29 (subject to 80% maximum loan to value)

° Interest rate reverts to bank base rate plus 1.99%, two years

from date of completion

° Early repayment charge of 4% of the amount repaid during first

2 years

° Lender's fee of 2.75% of the loan amount - this can be added

to the mortgage account or paid up-front

° Broker's fee applies. Subject to status, availability and

valuation.

2 year variable at 5.04% (Bank of England base rate of 5.25% minus 0.21%)

° Borrowing ability - up to 80% LTV

° No early repayment charges

° 110% interest cover

° Lender's fee of 2.5% of the loan amount - this can be added to

the mortgage account or paid up-front

° Interest rate reverts to bank base rate plus 1.99%, two years

from date of completion

° Broker's fee applies. Subject to status, availability and

valuation.

You have to contact me before midday on Wednesday 5th March to be able to book funds for these products.

In addition to the products mentioned above, the fixed rate below is being withdrawn shortly - please contact me by midday on Friday 7th March:

5.29% 2 years fixed until 31/12/2010

° Borrowing ability - up to 85% LTV

° 115% interest cover

° Lender's fee of 1.5% of the loan amount - this can be added to

the mortgage account or paid up-front

° Early repayment charge of 6% of the amount repaid during first

2 years

° Broker's fee applies. Subject to status, availability and

valuation.

If you are interested in any of the products above, please contact me ASAP.

Best regards

Samantha Ayres

Telephone: 01494 895083

Email: sayres@themoneycentre.net

Website: http://www.tmcwycombe.co.uk

I got the same BO!!OCKS too

Edited by 234SALE

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I have just got a word from one of our lenders that the following two tracker products are being withdrawn. If you would like to book the funds for either of these products, please contact me by midday on Wednesday 5th March.

Think about it, It says the mortgage will be withdrawn, lending restrictions increased.

The property is only worth what you can borrow against it..

Property is going to worth LESS,, A LOT LESS

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That is one simple change the FSA/govt. could make.

ALL fees/charges/commissions etc should be included in the APR for the term of the fix however they are paid.

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  • 294 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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