Tag Archives: mortgage arrears

Shams, Scams and Blocking Tactics Buy to Let News, Guest Articles, HMO's & Student Lets, Latest Articles, Lettings & Management, Tenant Eviction

By Guest Columnist Ben Reeve-Lewis

We live at a time when mortgage repossessions are running at an all time high, last year saw 45,000 with a huge impending increase in 2012 and even more restrictions being placed on lenders by the FSA when offering alternatives to repossession.

And all this without a rise in interest payments. Imagine what will happen when they go up? Continue reading Shams, Scams and Blocking Tactics

Why are Social Housing Tenants Seen As Second Class Citizens? Guest Articles, Guest Columns, Property Market News

As I read my way through developments in the housing world on a daily basis I see increasing reference to perceptions about social housing tenants which seems to be becoming a source of more concern for many landlords.

People have often had negative opinions about that world, but not as serious as the direction it seems to be going. I thought it might follow on from last summer’s riots, I don’t know, but 3 things happened on the same day last week to make me ponder on this more seriously Continue reading Why are Social Housing Tenants Seen As Second Class Citizens?

Mortgage Lenders Paying Deposits on a Private Let????? Have you Gone Mad? Guest Articles, Guest Columns

Most readers of my articles know about my work on landlord/tenant law issues. What many of you don’t know is that 50% of my work these days is negotiating with banks to stop repossessions where people are in mortgage arrears, which is a whole different ballgame. You thought landlord-Tenant law was complicated?????

In 1904 an appeal court judge hearing the case of Samuel v. Jarrah Timber and Wood Paving Corporation said “Nobody, I am sure, by the light of nature, ever understood an English mortgage of real estate”…..certainly not me who has to fight the borrower’s corner, nor the army of staff working for banks who argue from the other side. We all hack about hoping we aren’t being too wide of the mark and run cases by county court judges who often look similarly perplexed. Continue reading Mortgage Lenders Paying Deposits on a Private Let????? Have you Gone Mad?

Bank Pulls Plug on Britain’s Worst Landlord Cautionary Tales, Latest Articles, Lettings & Management

A buy to let mortgage lender called in more than £1 million of loans when a landlord described as one of Britain’s worst slum landlords was arrested for fraud.

The Co-operative Bank ruined the rental business by demanding Joshua Danski repay his borrowings when managers were alerted to his poor business practices. Continue reading Bank Pulls Plug on Britain’s Worst Landlord

More House Price Gloom as Market Flatlines House Prices, Latest Articles, Property Market News, Property Sales & Sourcing

House built up with jigsaw pieces

"CLG have found a stagnant market"

The latest official statistics confirm the housing market is sluggish and is not showing any signs of a revival at any time soon.

The government’s Communities and Local Government statistics for July show that house prices fell 1.5 percent year on year and a nominal 0.3 percent from June.

The average house price is now £ 207,690.

Prices fell slower in Wales (-0.1%) than England (-1.5%) and Scotland (-1.8%).

London has the highest average house price (£347,271). The North East has the lowest at £133,163. Continue reading More House Price Gloom as Market Flatlines

More tenants in arrears as rents keep rising Latest Articles, Property Market News

houses on red soaked image

More tenants in arrears

Around 75,000 buy to let tenants are in rent arrears – a 13% increase on the same period last year, according to rent receivers appointed by mortgage lenders.

The number of tenants failing to pay rent went up from 71,483 in the first three months of 2011 to 74,492 in the second quarter – a 4% rise.

Tenants who do not pay their way are also finding landlords are taking a tougher approach to arrears as court orders for evictions has gone up 9% year-on-year.

Landlords are managing to handle the income deficit as mortgage lenders report loan arrears have dropped by 12% in the year. Continue reading More tenants in arrears as rents keep rising

Buy to let mortgage rates cut by TMW Buy to Let News, Latest Articles, Mortgage News, Property Market News

Calculator on pad The Mortgage Works (TMW) has cut interest rates across some buy to let mortgages and launched a new fixed rate deal.

Rates are down by 0.5% on mortgages for first landlords, let to buy borrowers and those offering free valuations and legal fees.

The new fixed rate is 4.99% at 50% loan-to-value over five years with a 3.5% arrangement fee. Continue reading Buy to let mortgage rates cut by TMW

A million buy to lets may slip in to negative equity Latest Articles

Monopoly houses on coins A million buy to let properties could slide in to negative equity over the next two years if house prices keep falling, warns credit rating firm Standard and Poors.

Analysts at the agency reckon if house prices dropped by 5% this year and next year, 30% of the UK’s 3.1 million buy to let homes would be worth less than any mortgages owed on the properties.

Continue reading A million buy to lets may slip in to negative equity

Buy to let market expanded by 7% in 2010 Latest Articles

The truth is finally out about how the buy to let market performed in 2010 as the Council of Mortgage Lenders (CML) has released the latest loan figures for property investors.

The figures confirm the market expanded by 7%, with about 1.3 million buy to let mortgages worth £152 billion on the books of the UK’s major banks and building societies.

The buy to let sector accounts for around 12% of the UK’s total residential mortgages by number and value.

Lending in 2010 was £10.4 billion, up 22% from 2009, and the total number of  new loans  was 102,000, which was 10% higher than the previous year.

In the last three months of 2010,  28,600 new buy to let loans worth £3 billion were advanced.

Landlord mortgage arrears also fell back during the year.

The general CML view is that buy to let arrears have dropped in line with residential mortgage arrears, after running at a higher rate.

Lenders expect surging rental demand to continue

Low interest rates are a key driver of this narrowing of the gap, since most buy to let loans are interest only and gain a greater benefit from lower interest payments than capital-and-interest rates paid by other homeowners.

The CML expects strong rental demand to remain throughout 2011, mainly due to high deposits needed by first time buyers. Banks and building societies do not expect this to change in the foreseeable future.

CML director general Michael Coogan said: “Funding remains a key constraint on growth in buy-to-let lending, but demand seems to be resilient and loan performance has improved.

“Looking ahead, loan performance could potentially be adversely affected by rising rent arrears or interest rate rises, but at present there is no indication of these pressures materialising in practice.

“There is also a strong counterbalancing growth influence on the buy-to-let market, as tenant demand seems set to remain high in the face of continuing deposit constraints to entering the owner-occupier market.”

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