This week’s first comment was a reaction to: The vital role of brokers in EPC education of landlords – Ward
Michelle Lawson said: “Landlords just aren’t interested. I talk about this regularly, explain implications etc but not one landlord I have spoken to, and I do a lot, are interested about the EPCs.
“If they don’t qualify for any grants, it is a huge outlay and the only people that will benefit are the tenants (again). The product saving for a mortgage isn’t really significant and this just represents yet another red tape regulatory nail in the coffin for the buy-to-let industry unless something more innovative is done.”
Mortgage charter measures ‘not a lot new’
The next comments were in response to: Majority of UK lenders sign government mortgage charter
Kevin Saunders said: “Switching products with no affordability checks already in place, locking in six months in advance is also in place for most lenders who offer product transfers. So, not really a lot new, unless you’re saying customers can move lenders with no affordability checks?”
Arron190 added: “For the last few years, lenders’ rate switch options and policies have become critical in the decision on where to place cases. Some lenders have still to offer rate switches or are selective which clients receive them.
“Many only allow this within two to three months or renewal and then the client is locked-in, but a few have policies that make it difficult for brokers to help and so directing the client to the lender directly. This needs to be ranking just below product cost in souring going forward.”
Lenders must ‘make clear’ interest-only and payment holidays impact end of term
Another comment came in response to the article: Lenders will offer 12-month grace period before repossessions – reports
Terry Arch said: “If lenders are going to allow interest-only/payment holidays. They must make it clear that this will ultimately affect the situation at the end of the term. I remember the time when the endowment review was completed and compensation was paid, there were more new kitchens, cars etc appearing rather than paying the compensation off their mortgage.
“They wondered why their mortgage was not paid off at the time, bearing in mind that the concept was to put them in the same position as if they had a repayment mortgage.”
He added: “I think one of the main things at present were those people who participated in the government’s Help to Buy who took out a five-year fix with a lender, plus they are at the end of the Help to Buy scheme and are going to be hit with a double whammy.
“With interest rates going up on both. I think with this and the fact that lenders have reduced their affordability modules puts people between a rock and a hard place. Yes, they could sell and have some equity due to property prices rocketing up over the last five years, but they will have to pay the government loan out of the proceeds.”
The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.
