Covid-19 – Which BTL Lenders Are Playing Ball?

by Mark Alexander

15:51 PM, 26th March 2020
About A week ago

Covid-19 – Which BTL Lenders Are Playing Ball?

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Covid-19 – Which BTL Lenders Are Playing Ball?

In my opinion, this short video is the most helpful for landlords so far in the Covid-19 crisis.

Comments from readers, in regards to their personal experiences, are very much necessary.

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Comments

Monty Bodkin

18:03 PM, 26th March 2020
About A week ago

Reply to the comment left by Mark Alexander at 26/03/2020 - 17:38
For every million of debt you get 7.5K @ 3% over the 3 months, which still has to be paid back.

You can (could?) get that by simply taking out a further advance or even flipping 0% credit cards (3% fee).

Can't see the point.

David

18:52 PM, 26th March 2020
About A week ago

Reply to the comment left by Mark Alexander at 26/03/2020 - 17:38
As Ranjan says, all the BTL lenders are taking a different approach, Godiva automatically giving the holiday (missed interest payments added to loan), Precise only playing ball if the tenant is in arrears, the rest are very slow to respond to letters sent out last week. Lots of tenants already citing rent payment problems so working through re-payment plans to assist so it is best to try to secure the mortgage holiday if you can.

Monty Bodkin

19:05 PM, 26th March 2020
About A week ago

Reply to the comment left by David at 26/03/2020 - 18:52"so it is best to try to secure the mortgage holiday if you can."
Why do that if you've got good cash reserves?

It's not free money, you have to pay it back.

Dylan Morris

20:42 PM, 26th March 2020
About A week ago

Reply to the comment left by Monty Bodkin at 26/03/2020 - 19:05
Also lenders are likely to mess up your credit score with your “holiday” showing as arrears. Yes I know they’re not supposed to do that but sod’s law they’ll cock it up and it’ll be a nightmare to get them to correct it later. So I agree best to pay if you can.

Mark Alexander

20:42 PM, 26th March 2020
About A week ago

Reply to the comment left by Monty Bodkin at 26/03/2020 - 19:05
For the same reason people with cash don’t always pay down debt. Cash in King!

David Lawrenson

5:37 AM, 27th March 2020
About A week ago

Mark (and maybe other mortgage brokers reading this).

We still have had no communication from BM or UKR (Old Mortgage Express), re the new payments due following the cuts to base rate last week.

(We always took care to stay on older, historic lifetime base rate trackers).

I'm hoping they are not "doing a West Brom" here and trying to somehow find ways to wriggle out of the contracts. Any thoughts?

David Lawrenson
http://www.LettingFocus.com

Monty Bodkin

9:31 AM, 27th March 2020
About A week ago

Reply to the comment left by Mark Alexander at 26/03/2020 - 20:42
You still have the cash facility, you just don't have to pay for it until you're desperate enough to need it.

Neil P

11:46 AM, 27th March 2020
About A week ago

A couple of things for my fellow-BTL'ers...
1. There must be a risk that taking this 3 month mortgage "holiday" has an effect on your credit rating, as the systems won't necessarily be in place to show it as anything other than a late payment. I'm not willing to take that risk (cash reserves allowing), my credit rating it soo precious.
2. Has there been any guidance issued about gas safety certificates? I've not got one due yet but I'm sure when I do there won't be any engineers available (they should quite rightly be staying at home).
Thanks
Neil

Mark Alexander

12:01 PM, 27th March 2020
About A week ago

Reply to the comment left by Neil P at 27/03/2020 - 11:46
For that reason alone I have decided to keep this option in reserve.

I know several landlords who have done this already and it will be interesting to see whether their credit reports are affected. They are all adamant that lenders have told them there will be no effect. I have also seen this said in many lenders websites.

David Lawrenson

12:23 PM, 27th March 2020
About A week ago

Hi Mark (and maybe other mortgage brokers reading this).

We still have had no communication from BM or UKR (Old Mortgage Express), re the new payments due following the cuts to base rate to 1.1% last week.

(We always took care to stay on older, historic lifetime base rate trackers).

I'm hoping they are not "doing a West Brom" here and trying to somehow find ways to wriggle out of the contracts. I don't recall there being any floor within their T n Cs.

Any thoughts?

David Lawrenson

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