Lee Alderson

Registered with Property118.com
Tuesday 22nd April 2014


Latest Comments

Total Number of Property118 Comments: 4

Lee Alderson

9:04 AM, 23rd May 2014
About 7 years ago

Day one remortgage for cash purchase - failed score?

My 1st question is why is it lenders don't like to lend when you have purchased a property for cash and wish to re mortgage within 6 months.

My next advice is to agree with getting your credit score which could still be a lengthy process rectifying your score if you do have adverse credit.

My advice is ask for a low loan to value this way you still get some working capitol back and will probably find the lender will increase the loan to val when you have proved your self to them that your not a risk... Read More

Lee Alderson

15:52 PM, 21st May 2014
About 7 years ago

Letting Agent Deducting Commission from Deposit Refund

I agree especially with all the bad press regarding estate agents clearing off with tenants deposits and now trying to tax the deposits any way they can. There should be a website to name and shame the estate agents who try to rip off landlords.

I have a tenant moving in at the end of this month and usually use TDS for the deposit but I have now decided to save my money and the hassle and not take a deposit. I have found that the rental market is a completely different business to what is was 5 or 6 years ago. The credit checks and demand for rental property has now changed and so the type of tenants who apply for my properties have also.

Most are scared to make any problems during their tenancy as they know its very difficult to find new available properties and especially with a bad landlords reference. The other thing that's changed is the length of tenants stay. Most likely because of what I have just mentioned. If you look after them then 99% of the time they return the goodwill.

I'm going to give it a couple of years without taking deposits and see how it goes and if I can up the rent slightly for advertised properties because of the tenant not having to find 2 months up front it may just make the difference.... Read More

Lee Alderson

18:48 PM, 24th April 2014
About 7 years ago

MMR and the Property Investor

Reply to the comment left by "John Constant" at "23/04/2014 - 16:45":

Hi John

I take on board what you've said but still find it difficult to agree with all your comments. I do believe the market needs to be more prudent on lending and certainly I dont want to see another crash.

But I feel with my experience so far regarding my mortgage application is that I am having to dig a lot deeper into my pocket regarding my deposit which is well over the 50% ltv.

Now my first thing when having no option but to do this is I am tying up valuable working capitol which without boring you means less to go round for general house improvements etc etc. If you times me by 100 or 200 thousand successful mortgage applicants then how much money has been taken out of the economy which is not good when we are already close enough to the edge of recession.

This link will take you to the CML website on a page with some very interesting reading regarding MMR

http://www.cml.org.uk/cml/policy/issues/5105

You also mention the first time buyers government backed help which I agree is a great way to get the market moving. The problem with this is it is supposed to be coming to an end.
The exact term is The scheme is to be withdrawn in an orderly manner.

Regarding my broker who I have used for many many years who has done me proud on many occasions seems to be losing the will to live with the whole industry. He seems to be having more and more control taken away from him and regarding applications he mentions things like the Hunter Group and having to apply to his network for authorisation to proceed etc.

Personally a lot of the changes I see happening will do nothing but harm.

I foresee homelessness on an out of control scale.
A generation of renters with no hope of home ownership.
A drop in property demand on par with the crash.
Families stuck in properties without the chance of moving.
Another housing market price correction.

I do hope this will not be allowed to happen but as we all know the government seem to react rather than be proactive and prevent.... Read More

Lee Alderson

12:22 PM, 22nd April 2014
About 7 years ago

MMR and the Property Investor

Hi
I have a small portfolio of properties and foresee nothing but trouble ahead for landlords with regards to mortgage applications and the flood of properties coming on to the market as the MMR starts to hit the residential market.

As mentioned in your forum the MMR will cause large amounts of people to become accidental landlords and will flood the rental market. The banks are already looking at higher deposits from landlords or have started tweaking the conditions like no 1st time landlords of will not lend on a property that may be of a higher value than the other properties in your portfolio. MMR is going to have massive repercussions and the Government will will soon start to back track as they see the nightmare unfold as the housing market comes to a halt.

It is now almost impossible for first time buyers and most have had no choice but to rely on bank of mum and dad. Well now bank of mum and dad will disappear as mum and dad realise they themselves are struggling to obtain a mortgage and need every penny themselves.
And we all know when the market at the first time buyer end dries up then the rest of the market will slow or grind to a halt.

I my self are in the midst of applying for a mortgage through my broker and was shocked when he said 10 days ago he would need to move quickly regarding my application. I was shocked and a little angry when he mentioned MMR which my first thought was not more meddling from the government / FSA. I have a large deposit and well above average income and perfect credit score and the application is not going as well as expected.

If of coarse I was happy to settle for a very very affordable property then I would sail through the application process but my wife and three kids might not be so happy living in a one bed flat.

I read a survey that was carried out by CML who ran a test on approved mortgages from last year and found over 64% would have been refused under the new MMR rules. The crazy thing is that out of the 64% less than 1% had had trouble over the last year with their mortgages.

All I can say is the MMR deadline is officially not hear yet but so far its been a nightmare as many of the criteria is already being applied by the lenders.

Mark my words the introduction of the MMR is bad for all involved.... Read More