Banning ‘no-fault’ evictions will deter landlords – Star Letter 26/04/2024

Banning ‘no-fault’ evictions will deter landlords – Star Letter 26/04/2024

This week’s comment came from Arron190, in response to the article: Govt ‘caved in to vested interests’ on no-fault evictions, deputy Labour leader says 

Arron190 said: “Rayner’s hypocrisy equals her property knowledge. Banning ‘no-fault’ evictions will deter landlords, making the market worse. They can also ruin communities where landlords would be unable to secure written complaints from neighbours to evict a bad tenant.

“Sunak is doing an awful job, but things will clearly be worse under Rayner.” 

 

 

The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.

Brokers may find handing over cases to packager ‘incredibly frustrating’ – Star Letter 19/04/2024

Brokers may find handing over cases to packager ‘incredibly frustrating’ – Star Letter 19/04/2024

This week’s comment is in response to: Networks can’t afford to ignore the specialist market – Rees

Paul Smulovitch said: “From the network’s point of view, it’s absolutely right; they see it as high risk and want all cases to be referred to a packager, but while this works for some brokers, those with more experience and competence then, as stated here, it’s incredibly frustrating to hand the client over for someone else to advise.

“If the service is poor, which can often be the case, then it badly affects the client-broker relationship, and for non-regulated deals with little risk, why can’t brokers deal? Many brokers go down the directly appointed (DA) route for this reason as they feel they have no or limited control over their destiny due to the controls and limitations in place, which, for those who are incredibly safe, is sad.”

 

The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.

Borrowers can see ‘things are going to get worse’ – Star Letter 12/04/2024

Borrowers can see ‘things are going to get worse’ – Star Letter 12/04/2024

This week’s comment was in response to the story: New rules for mortgage lenders as quarter of Brits struggle with cost-of-living crisis 

Sox said: “This is very good news, so many times I’ve spoken with clients who, for whatever reason, need a ‘temporary’ fix because they can see that things are going to get worse and they are going to start to struggle. Yet their lender has refused to assist further until they fall into arrears, thus ruining their credit rating, which impacts their lives in other ways and is really not a way to treat people.

“Obviously the Mortgage Charter is currently catching a lot of these people, and long may it continue, but there are other options such as part and part repayments or a three-month payment holiday, for example. Listening and understanding people’s individual circumstances instead of applying a ‘broad brush’ policy is a step forward.” 

Sox added: “I get the impression it’s the lenders’ systems that often prevent this, as they just don’t have the IT capacity to play around with variable payments, but this isn’t really a valid excuse when there is a struggling human being in need.” 

Estate agent ‘regulator with bigger teeth’ needed ‒ Star Letter 05/04/2024

Estate agent ‘regulator with bigger teeth’ needed ‒ Star Letter 05/04/2024

This week’s first comments come from: MPs launch inquiry to improve ‘stressful’ homebuying and selling process

Arron190 said: “Buying a property is stressful and many of these issues have been examined repeatedly, but it is curious this is on the list of government priorities over say the regulation of builders, who can cause untold misery on everyone, not just homeowners. This alone could increase tax revenues instead of increasing the rates on those that do pay tax.

“That said, the code to ensure good standards from estate agents and the sales agents for developers referring services is still abused with no evident enforcement. Perhaps a regulator with bigger teeth and one that encourages brokers to report infringements. Or an outright ban if that does not work.”

The comment continued: “The main consumer detriments seems to be: 1) Referral fees of typically £500, but up to £1,000 for law firms that would never receive new business based on service. 2) Non-refundable deposits of £2,000 for new build (up from £200 and refundable) with high-value properties at £5,000. 3) The brokers whom buyers are forced to engage only using 3-6 lenders, despite claiming independence and whole of market. Indeed, this should also be an FCA focus.”

Zeno of Citium added: “It would help from the start if estate agents just sold the house, and if the applicant is already sorted with a broker and solicitor, let them get on with it, rather than trying all desperation measures to unhook that relationship.

“It is funny how they attack the broker link, but never in such ferocity with the conveyancer – probably to avoid being sued for libel.”

 

‘More brokers should be selling income protection’

This week’s last comment is in response to: Almost half of people buy critical illness cover for financial security and protection

Arron190 said: “This is why more brokers should be selling income protection, which does allow multiple claims and is significantly cheaper. For many illnesses, people need to cover the financial impact to ensure they are in a similar position and not the ‘lottery win’ of a lump sum for an illness that might take 1-2 years to be treated.

“While nice, it is reflected in the price, such that few buyers over 30 can afford to fully protect their mortgage.”

 

The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.

Govt has confirmed ‘uninterest’ in homeownership improvement ‒ Star Letter 15/03/2024

Govt has confirmed ‘uninterest’ in homeownership improvement ‒ Star Letter 15/03/2024

This week’s first comments came in response to: The govt has confirmed its disinterest in improving homeownership – JLM

Zeno of Citium said: “With the current government knowing they are toast at the next election, with poll ratings of negative 20 per cent behind, and business donations now going to Labour, then it is a dead end in snuggling up to the housebuilders for their usual largesse (10 per cent of Tory donations came from such sources) and introducing measures to assist on housing, when they will not be in power to benefit from it.”

Stephen Riley added: “Presumably, the authors are aware of the distinction between ‘disinterest’ and ‘uninterest’? I’d argue that the government has confirmed the latter.”

James Burberry said: “Because we need a housing bubble with 99 per cent mortgages, right? Stamp duty exemption for down-sizers would be a good move, but who would get hit with a tax hike to balance things?”

 

Bridging vs offset mortgages

This week’s second comment comes from: Offset mortgages could ‘make world of difference to landlords’

John noted: “For advisers who advise clients on both mortgages and bridging finance, do you think advisers would want to advise offset instead of bridging? In the long run, advisers lose out financially. What benefits would you be giving to advisers?”

 

The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.

Brokers ‘taken for an almost robotic appliance’ ‒ Star Letter 01/03/2024

Brokers ‘taken for an almost robotic appliance’ ‒ Star Letter 01/03/2024

This week’s comments came in response to: Brokers’ wellbeing crucial as market picks up – Rees

Gotmyvote said: “Personally, I’m not sure there is the support spoken of here, at least not with the networks. Consumer Duty and client vulnerability have been so prominent this last 12 months that the adviser, whose job it is to make it all happen, appears to have been taken for an almost robotic appliance that carries on regardless.

“Nowadays, with rates going up at 8pm this evening, a form for this, a process for that and a report to complete for the other, there is enormous pressure on a busy adviser and the network I will shortly be leaving has only made it worse.”

Michelle Lawson added: “As much as the industry says they ‘care’, the support as such isn’t reflected. Short/no notice product withdrawals, poor underwriting/service, and the ‘favour’ of allowing submission at 8pm, 10pm, midnight isn’t a healthy work/life balance.

“After-hours submissions can be worse if something goes wrong, as you know there is no support available as the lender’s teams are tucked up in bed, eating their dinner or spending leisure time.”

She continued: “There simply has been too much going on, more so for small firms who don’t have the luxury of accounts, compliance and marketing departments to offload some of the work to. This industry needs an overhaul. The ultimate thing is that we are all customers, and process has overtaken this and forgotten that there is a customer at the end of everything.”

 

The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.

99 per cent scheme ‘policy-grabbing waste of space’ ‒ Star Letter 23/02/2024

99 per cent scheme ‘policy-grabbing waste of space’ ‒ Star Letter 23/02/2024

This week’s comment is in response to: Chancellor Hunt lays out plan for 99 per cent mortgage – reports

MJ said: “What another policy-grabbing waste of space that will only help put people into a negative equity situation very quickly if the so-called experts keep predicting house price falls. Of course, prices won’t fall as it will line the pockets, yet again, of the large developers like the Help to Buy (HTB) scheme has done, and indeed fuel house prices.

“Then, in turn, in a few years’ time, the next first-time buyer will be back to square one with even more over-inflated prices of a new home. All that needs to be done is get rid of stamp duty, or at least lower the amounts payable by a hell of a lot.

“That, in turn, will encourage older homeowners to move downmarket and then second- and third-time buyers will move upmarket. Market keeps moving, prices stay steady ‘ish’, first-time buyers don’t keep getting priced out of the market with all these silly ideas that only fuel prices.”

 

The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.

‘Why would anyone be a landlord?’ ‒ Star Letter 16/02/2024

‘Why would anyone be a landlord?’ ‒ Star Letter 16/02/2024

This week’s first comments come from the piece: No fault evictions to be banned by next election, Gove says

Arron190 said: “So, the ‘small minority of unscrupulous landlords’ are responsible for legislation to support a much larger minority of bad tenants causing many good landlords to leave the market?

“A client was renting to an awful family that screamed and swore throughout the night. Both mother and father were thugs, and the neighbours were terrified. Under the current law, they found the owner, who simply said they were not renewing their tenancy.

“Under the new law, they would have to put their names on the record against two thugs and hope the court case is heard in weeks and not months. Why would anyone be a landlord?”

Boris added: “They want to increase housing supply; but they have waged war on landlords. This on top of taxing rental income on turnover, instead of net profit. Truly bizarre how far to the left these Conservative governments have drifted. I never thought I would see a Liberal government in my lifetime; but here we are.”

 

‘Lack of infrastructure’ reason brownfields undeveloped

This week’s next comment is in response to the piece: Councils ordered to make it easier to build on brownfield land

Arron190 said: “The reason many councils resist is because of lack of infrastructure. Developers have been building for years and either defer infrastructure to post-completion of the housing or pass over cash. However, the areas can suffer problems with congested roads, lack of school places and no local doctor.”

 

Stamp duty is ‘iniquitous form of taxation’

The final set of comments come from the piece: Appropriate homes will move dallying downsizers, not a stamp duty giveaway – Wilson

John Emmett said: “Stamp duty is an iniquitous form of taxation and a barrier to mobility in the job market and downsizing. If the thresholds were increased, or the tax even dispensed with, there would be an increase in turnover in the selling and purchase markets, which would benefit all.

“Downsizing was an option 10 to 15 years ago, but no longer. In this part of the world, near the sea and New Forest, when a bungalow comes onto the market, invariably, they are purchased by developers.

He continued: “Next, it is stripped, with one wall left standing and then rebuilt with bedrooms on a new first floor and the ground floor converted into an open plan living space. The property then goes back on the market. The price is often more than double the price originally paid, and given the location near the sea, sold within days. These properties are more expensive than established detached houses just further back inland.

“Large old houses are pulled down and apartments built. Again, these are very expensive and not much cheaper than houses. Car parking is restricted to one space or, if lucky, a garage per apartment. Not all retirees want to give up their cars.”

 

The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.

 

Govt 99 per cent LTV scheme ‘absolute madness’ ‒ Star Letter 23/01/2024

Govt 99 per cent LTV scheme ‘absolute madness’ ‒ Star Letter 23/01/2024

This week’s comments come in response to: Government hints at radical plans for 99 per cent mortgages ‒ report

Derek Compton said: “Madness, absolute madness. I predicted the Help to Buy (HTB) scheme would inflate house prices with builders increasing their prices as the buyer still needed a lower deposit than they previously did.

“Inflated new build prices inevitably inflate preowned prices. We only needed those rises to continue and then an increase in rates and people trying to get out of HTB would have massive payment increases that apparently they could not afford or want years earlier.”

He added: “On the basis of that, we have more people behind in payments, more repossessions, and people cancelling other direct debits such as protection to meet the increased bills.

“99 per cent loan to value (LTV) mortgages will be, yet again, another boon for builders. They will increase prices and make more profit and on the back of it property prices will increase. In addition, the interest costs will be huge.”

Arron190 added: “We should not be using taxpayers’ money to fund any more of these ludicrous schemes that simply drive up house prices and make developers richer. [Chancellor Jeremy] Hunt should concentrate on stimulating the economy and look for less state intervention, a smaller government and lower taxes.”

 

The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.

Student loans and rent are ‘impairments’ to FTB affordability ‒ Star Letter 12/01/2024

Student loans and rent are ‘impairments’ to FTB affordability ‒ Star Letter 12/01/2024

This week’s comments are in response to: Natwest chair FTB comments ‘couldn’t be further from the truth’, brokers say

disqus_8fOMMy2pIO said: “Davies should take a leaf out of David Packard’s (of HP fame) vision of MBWA – management by wandering around. Speak with your own staff and ask them how easy it was for them to buy – and not with any discount help from their employer.

“The twin problems of student loans and rent hitting new highs throughout the year are serious impairments for being able to break through affordability barriers.

“However, it can be achieved – I have a first-time buyer who avoided university and accrued debt, went to be an engineering apprentice and has lived at home. Has no massive car loan, has saved £50,000 deposit for a 70 per cent loan to value (LTV) property, and focused on the target throughout.”

Arron added: “I agree with Sir Howard. Most first-time buyers can get on the housing ladder, but they need to compromise, which is a quality lacking in many.

“For example: 1) Avoid new builds just because they do not require any work. 2) And consider properties that need tidying up. 3) While living in Central London is handy for socialising and commuting, perhaps consider commuting. 4) Instead of a brand-new car renewed every three years on a lease, buy a car and look after it. 5) If it is possible to live at home, do so and save up.”

Very deceptive disagreed, noting: “Commuting from where? I’m 20 miles outside London and two-bed flats start at £350,000 in the cheap area. That’s a huge income needed from a single person, let alone the issue of scraping together the deposit.

“Plus, the reliance of needing a car increases dramatically in the Home Counties whether commuting to London or not.”

 

The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.