Interesting stats, although I can’t see many second charge lenders having the appetite or capacity to deal direct with 8/10 DA brokers. In my opinion, seconds will very much remain a niche product much like specialist mortgages and will therefore remain in the domain of packagers or master brokers.
The Lending Channel
As I have said the buy-to-let (BTL) market has almost dried up due to the recent changes to tax and Stamp Duty. So, I don’t know why the Bank of England is even bothering about tightening up. It just shows how out of touch the Government and the Bank of England are! One agent told me the other day that he had taken on 15 flats within a couple of days. Notices to Quit were served on 12 of the flats. So where is George Osborne going to house these tenants? As the agent said to me that they had no rental properties available and any that were coming up to be let were achieving 20% increase in rent, due to the fact that tenants are now bidding against one another. Well done George!
I wonder who’s advising the regulator and Treasury? Is it a Mr S Baldrick who has a cunning plan?
The Cynical Broker
This is a refreshingly constructive response to the spirit of the PRA proposals. There’s much to be said for Fleet and other lenders taking a common sense approach, whether or not they’re forced to do so.
Nice in theory but the “Reduced Capital Gains” is not for property. Landlords will pay the current Capital Gains rate when selling. SDLT is a little negative for new purchases (not much!) but won’t force sales. So no real fear of landlords leaving and needing to be replaced.
While we say this – letting agent windows are reported to be empty as demand is high.
High LTV landlord properties may exit the sector due to Clause 24 but that is staggered over a few years.
I don’t envision a six-month “pop” but if it does, in seven months it will be a good time to buy.