Michael Aglony
Mortgages for Business
Blog Synopsis
Views, news and opinions on the Buy to Let mortgage market from Mortgages for Business.
Other Posts by Michael Aglony
- So what's next after Base Rate is held at 0.5% again?
- Improved Funding for landlords
- At last - Funding for HMOs, Freehold Conversions & Limited Companies returns! 23.07.2009
- Increase in fixed rates as "perceived" inflationary pressures start to build. 22.06.2009
- Survey's report increases in house prices - 15.05.2009
- Base Rate stays at 0.5% for a second month - 07.05.2009
- Base Rate remains unchanged at 0.5% - 09.04.2009
- As the market bottoms out, now is the time to secure that property bargain - 03.04.2009
- The Turner Review may impact Buy to Let warns Lord Turner
- Now that Base rate has dropped to 0.5% it's time to fix!
- Northern Rock resumes lending - what will be its impact?
- Will everyone benefit from the 0.5% Base Rate cut?
- Bank Base Rate now seems set for 0.5% cut on Thursday
- B&B appoint Mortgages for Business for early repayment charge clients
- It looks like Bank of England Base Rate could drop to 1% next week
- Will Base Rate stay below 5% in 2009?
- It's all about cashflow!
- Mortgage Express are waiving all Early Repayment Charges!
- SWAP rates and LIBOR rates on the move in 2009 - 13.01.2009
- Bank of England Base Rate cut by 0.5%. How will this effect Buy to Let? - 08.01.2009
- Market awaits Year End movements at Banks
- Merry Christmas and here's to a better 2009!
- 3 month LIBOR continues to ease slowly - 16.12.2008
- LIBOR, SWAP rates, base rate and interest rates - we're seeing history being made - 11.12.2008
- Base Rate reduced to 2%
- The return of Buy to Let as a commercial transaction
Data indicates property market progress!
Wednesday, September 30, 2009
News that the number of mortgage approvals on house purchases at 38,095 in August was 81% up on August last year supported the evidence on estate agent activity reported over the last few months. Not surprisingly the reduction in remortgage activity at only 26,124 and 47% against the same time last year reflects the reality that current mortgage products are much more expensive than one year ago and that "back book" rates don't look so expensive after all; as the 39,000 customers of Mortgage Express are seeing with most mortgages reverting to BBR + 1.75% ie 2,25% today.
However there is movement in the market...At the high level Lloyds has just placed the first of three tranches of RMBS loans (AAA) totalling £4Bn with one tranche known to have been at 170bp. Whilst this is expensive money it frees up capacity (and liquidity) for Lloyds and ultimately is the first European RMBS since June 2008 - an important but necessary step towards establishing a new market.
At the retail level BM solutions re-priced earlier this month and withdrew the additional margin pricing on remortgage products; rumours about increasing LTVs abound but whilst the Buy to Let mortgage market is effectively controlled by a very small group of lenders achieving their desired levels of new cases, pricing won't change significantly. However the advent of Aldermore Bank (through a restricted broker panel) showing some appetite for HMOs and other property types is also a welcome step in the right direction.
We are hoping to announce a 3 year fixed product for HMOs in the next week or so ; activity at both landlord and lender level in the next two or three weeks will determine the remaining months of 2009.
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nick 1/6/2010 @ 00:14