Wednesday, February 20, 2008
Lenders in a tailspin
Recap of last 24 hours news
A mortgage advisor writes: "Just to add to an absolutely horrific day.. I'm sick of it, every day I get a redundancy email, a lenders gone bust email, or we are not doing high LTV/self certs/BTL's anymore email. Makes my job an absolute nightmare. If lenders retract much further we will only be lending to super clean prime full status clients and there will be a lot of people looking to rent!" In the past day: Alliance and Leicester and Abbey pull all their 100%+ LTV deals, followed shortly afterwards by Coventry and B&M, leaving only NR. Picture Loans closes to new business ("temporarily") LMS mortgage packagers goes into receivership And Platform mortgages, the sub-prime arm of Britannia, sacks 20% of its workforce.
Posted by little professor @ 08:14 PM (2079 views)
10 thoughts on “Lenders in a tailspin”
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alan says:
Bradford & Bingley are still offering 110% according to their website and Metro ads.
I take LP’s point, getting good competitive quotes when remortgaging is getting harder.
jack c says:
Advantage have also written to brokers stating that they should look to place cases elsewhere – mortgage providers are shrinking in number by the day.
In the short term I see this as leading to a “freeze” in the housing market before prices begin a prolonged decline.
crash bandicoot says:
“I now have to look for a much smaller house, send back one of my cars and shop in Aldi.”
If you listen carefully you may just be able to make out the sound of my heat bleeding – not. If you live by the sword you die by the sword. If you have been making a killing selling 125% mortgages to financial retards you can hardly seek sympathy for having to review your situation when the world returns to normal. At least she can still afford a house – and a car – and shopping.
japanese uncle says:
Don’t underestimate ALDI. Quality of their merchandise is not bad at all while the prices are strongly competitive. If you want to bust Inflation, then visit your local ALDI and LIDL. Apparently their business model highly exploits EC duty-free regime, realising great competitive advantage in terms of prices. No thanks for TESCO any more.
guiriduro says:
The bit about looking for a smaller house isn’t as big an issue I’d have thought, wait another 6 months and a larger house will pop into range of reduced budgets. To badly mix some metaphors, prices inflate to fill the credit boom space available. Likewise, with a few hundred billion disappearing through subprime losses, CDO firesales, etc., the market mountain will come back to Mohammed, house prices will move down to where they meet with reduced affordability, its inevitable.
paul says:
I’ve just finished watching the Dispatched documentary (couldn’t see it on Monday) and I agree – it is horrifying what the government has done to this country. I als agree that we say it coming and like Jon Moulton, no-one took our advice.
who stole my pension? says:
It seems the banking industry is returning to fundamentals i.e.
1) If they lend you money then they want it back! Something that they seem to have forgotten the last ten years, and
2) A bank is a place that will lend you money if you can prove that you do not need it!
For a while cash will be king er or perhaps gold as the pound is sinking!
renting2 says:
Shock horror! The banks have relearnt old lessons. Now they want squeaky clean business, just like they used to insist on 50 years ago! Maybe grandad did know a thing or two.
mark wadsworth says:
Tee hee!
geed says:
I’m with you JU, Aldi and Lidl are brilliant. But remember this is snobby, class driven Britain. Aldi could sell the best produce on the planet but it is considered working class cheap, so the “Ya, Darling” bunch would rather walk to Tesco’s and buy no frills beans than drive to Aldi’s in their second hand Skoda and fill their trolley to the brim. We are a sad, impressionable lot.