BMV Property Bargains Among the Panic (It Will Help If You Have a Good Credit Rating and Lots of Cash!)
Once the BOE had to step in to help Northern Rock, there was always going to be more than a whiff of panic in the financial system
At least with retail price inflation coming down the BOE could hold the base rate at 5.75%.
But now, the whole world seems spooked because along with expected mortgage rate rises, the stock market has been hit hard – especially the banks and in particular the lenders reliant on the money markets to raise money for mortgage finance. Stand up Paragon and B&B - who also all have a a fair bit of buy to let lending
What a change from earlier in the year!
Only yesterday, lenders had been busy relaxing their lending criteria with borrowers for non buy to let mortgages getting higher multiples of earnings, higher loan to value ratios and landlord borrrowers getting softer rent to interest calculations.
Lax Lending regime Over
Now, it looks like this laxer lending regime has ended – at least as long as the credit crunch lasts
The crunch has also come at a really awful time, because back in late 2005, according to the Council for Mortgage Lenders (CML), over a half milion people took out fixed-rate mortgages, mostly for two years, at an average interest rate of just over 4.5 per cent.
Since then the Bank of England has raised base rates five times. If you add the effect of rises in rates due to the currrent crunch onto all that and you can see how people may really suffer over the next month or two.
Are there any silver linings for property investors and home buyers?
Yes. This will all mean that there could be a lot of “distressed property sellers” out there over the Autumn.
So perhaps this is an opportunity for people to buy property cheaply and more people will decide to return to renting or put off buying a house – thus pushing up rents.
The only trouble is, mortgage finance will be hard to come by, so those with a cash pile to invest and snap up property will do well, while those with none and / or with blemished credit records will be ruing their highly leveraged or bad credit position.
LETTINGFOCUS.COM
We are LettingFocus.com - the property lettings expert and I’m David Lawrenson, the author of “Successful Property Letting” - the UK’s top selling property and buy to let book for the last 3 years.
As a landlord and property investor myself for over 25 years we can offer independent unbiased
seminars for buy to let investors and landlords as well as one to one advice covering all aspects of being a landlord and investing in property.
Property “advice” is unregulated but as I am not linked to a property company, developer, estate agency or bridging loan provider I am one of the few who can offer unbiased independent advice on where to buy (which areas), what type of property to buy, when to buy and how to buy property at a low price. I can also explain how to reduce the risk of getting a bad tenant.
CHECK OUT THESE PAGES AT OUR SITE LETTINGFOCUS.COM:
Our Events only take place twice a year.
For our NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors click here:
Next Property Investing Seminar and Networking Event
We have GREAT OFFERS for landlords too, Click here: Services and Products for Landlords to see our Landlords Resources (Useful Links) page. (Selling services to landlords and property investors and have a national coverage? You could be a partner, please get in touch!)
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
ONE TO ONE CONSULTING click here: Property Consulting
CLIENT TESTIMONIALS from past customers click here: Testimonials
BUY THE BOOK click here: Buy the Book at Amazon
THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!
IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR OUR WEBSITE?
Over on the right hand side under all the previous blog entries you will find a button which says “Site Feed.” Simply copy the site feed link into your News Reader or News Aggregator to be kept updated of any change here.
TO VIEW RELATED POSTS select a “Category” at the bottom of this page.
WANT TO ADD A COMMENT OR VIEW OLD COMMENTS?
To add a comment to this post, simply click on “link to this post” to add your comment and to view comments of other people.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week
At least with retail price inflation coming down the BOE could hold the base rate at 5.75%.
But now, the whole world seems spooked because along with expected mortgage rate rises, the stock market has been hit hard – especially the banks and in particular the lenders reliant on the money markets to raise money for mortgage finance. Stand up Paragon and B&B - who also all have a a fair bit of buy to let lending
What a change from earlier in the year!
Only yesterday, lenders had been busy relaxing their lending criteria with borrowers for non buy to let mortgages getting higher multiples of earnings, higher loan to value ratios and landlord borrrowers getting softer rent to interest calculations.
Lax Lending regime Over
Now, it looks like this laxer lending regime has ended – at least as long as the credit crunch lasts
The crunch has also come at a really awful time, because back in late 2005, according to the Council for Mortgage Lenders (CML), over a half milion people took out fixed-rate mortgages, mostly for two years, at an average interest rate of just over 4.5 per cent.
Since then the Bank of England has raised base rates five times. If you add the effect of rises in rates due to the currrent crunch onto all that and you can see how people may really suffer over the next month or two.
Are there any silver linings for property investors and home buyers?
Yes. This will all mean that there could be a lot of “distressed property sellers” out there over the Autumn.
So perhaps this is an opportunity for people to buy property cheaply and more people will decide to return to renting or put off buying a house – thus pushing up rents.
The only trouble is, mortgage finance will be hard to come by, so those with a cash pile to invest and snap up property will do well, while those with none and / or with blemished credit records will be ruing their highly leveraged or bad credit position.
LETTINGFOCUS.COM
We are LettingFocus.com - the property lettings expert and I’m David Lawrenson, the author of “Successful Property Letting” - the UK’s top selling property and buy to let book for the last 3 years.
As a landlord and property investor myself for over 25 years we can offer independent unbiased
seminars for buy to let investors and landlords as well as one to one advice covering all aspects of being a landlord and investing in property.
Property “advice” is unregulated but as I am not linked to a property company, developer, estate agency or bridging loan provider I am one of the few who can offer unbiased independent advice on where to buy (which areas), what type of property to buy, when to buy and how to buy property at a low price. I can also explain how to reduce the risk of getting a bad tenant.
CHECK OUT THESE PAGES AT OUR SITE LETTINGFOCUS.COM:
Our Events only take place twice a year.
For our NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors click here:
Next Property Investing Seminar and Networking Event
We have GREAT OFFERS for landlords too, Click here: Services and Products for Landlords to see our Landlords Resources (Useful Links) page. (Selling services to landlords and property investors and have a national coverage? You could be a partner, please get in touch!)
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
ONE TO ONE CONSULTING click here: Property Consulting
CLIENT TESTIMONIALS from past customers click here: Testimonials
BUY THE BOOK click here: Buy the Book at Amazon
THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!
IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR OUR WEBSITE?
Over on the right hand side under all the previous blog entries you will find a button which says “Site Feed.” Simply copy the site feed link into your News Reader or News Aggregator to be kept updated of any change here.
TO VIEW RELATED POSTS select a “Category” at the bottom of this page.
WANT TO ADD A COMMENT OR VIEW OLD COMMENTS?
To add a comment to this post, simply click on “link to this post” to add your comment and to view comments of other people.
Copyright: David Lawrenson 2007. This blog is updated at least twice a week
Labels: buy to let mortgage rates, buy to let mortgages, credit crunch, credit files, Property advice
This entry was posted by lettingfocus, on
Monday, September 17, 2007.
