Killer Bunny Posted March 6, 2008 Share Posted March 6, 2008 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 Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted March 6, 2008 Share Posted March 6, 2008 2.5% arr fee? That's more than a year's rent. Quote Link to comment Share on other sites More sharing options...
Paddles Posted March 6, 2008 Share Posted March 6, 2008 What a great deal, I'm shocked that you haven't taken up their kind offer...... Quote Link to comment Share on other sites More sharing options...
babesagainstmachines Posted March 6, 2008 Share Posted March 6, 2008 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. Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted March 6, 2008 Share Posted March 6, 2008 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. Quote Link to comment Share on other sites More sharing options...
Guest DissipatedYouthIsValuable Posted March 6, 2008 Share Posted March 6, 2008 (edited) Thankyou for our daily succour, Master. May Renting be upon you. And Gold to the Moon. Edited March 6, 2008 by DissipatedYouthIsValuable Quote Link to comment Share on other sites More sharing options...
piece of paper Posted March 6, 2008 Share Posted March 6, 2008 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. 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 Quote Link to comment Share on other sites More sharing options...
babesagainstmachines Posted March 6, 2008 Share Posted March 6, 2008 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 ?? Quote Link to comment Share on other sites More sharing options...
Guest_Bosworth_* Posted March 6, 2008 Share Posted March 6, 2008 5.29 + 2.5 = 6.54 ?? 5.29 + (2.5/2) = 6.54 Quote Link to comment Share on other sites More sharing options...
babesagainstmachines Posted March 6, 2008 Share Posted March 6, 2008 Whence the 1/2 ? Am I being thick? Quote Link to comment Share on other sites More sharing options...
TwentyOneEleven Posted March 6, 2008 Share Posted March 6, 2008 Whence the 1/2 ? Am I being thick? Two Year Tracker Quote Link to comment Share on other sites More sharing options...
babesagainstmachines Posted March 6, 2008 Share Posted March 6, 2008 (edited) Two Year Tracker Hmm. It's not clear to me what the 2.5% is 2.5% of. I assumed total mortgage. Edited March 6, 2008 by dazednconfused Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted March 6, 2008 Share Posted March 6, 2008 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 Quote Link to comment Share on other sites More sharing options...
Guest DissipatedYouthIsValuable Posted March 6, 2008 Share Posted March 6, 2008 Whence the 1/2 ? Am I being thick? Yes. Quote Link to comment Share on other sites More sharing options...
234SALE Posted March 6, 2008 Share Posted March 6, 2008 (edited) 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 March 6, 2008 by 234SALE Quote Link to comment Share on other sites More sharing options...
234SALE Posted March 6, 2008 Share Posted March 6, 2008 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 Quote Link to comment Share on other sites More sharing options...
R K Posted March 6, 2008 Share Posted March 6, 2008 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. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted March 6, 2008 Share Posted March 6, 2008 (edited) I got the same BO!!OCKS too That is a FABULOUS cartoon - it SUMS UP the whole SCAM for what it is... Edited March 6, 2008 by eric pebble Quote Link to comment Share on other sites More sharing options...
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