Nearly impossible to get a remortgage now.

evilgenius

Novice Member
Me and my wife are coming out of a deal with Abbey in a few weeks time and while our home is worth 190k our mortgage is only 62k. So wed like to borrow some xtra for home improvements, 35k extra.

We are finding it next to impossible to find decent deals. I mean with all the credit problems in the UK you'd think they would be offering competitive rates not actually putting the rates up higher.

Has anyone any advice they could offer regarding this or comments? Should we hold off until things calm down in the UK or what? Its incredibly frustrating tbh.
 

mrmcdean

Novice Member
I think HSBC are offering good deals for people coming out of a fixed term deal although I dont know much more than that im afraid. Im sure I read somewhere that they would try to match the deal you are about to leave (but dont quote me on that one).

Good luck
 

eric pisch

Novice Member
Banks are shutting up shop, I have been talking with mine about some cash flow funding (one of the main 4) and they have almost no money to lend and are offering terrible rates ...

If this carries on it will force a housing price crash.
 

Ultima

Well-known Member
Had a meeting this morning with my Bank Manager who said that his bank (one of the big 4) hadn't closed any doors to new lending and that they were still very active in looking for new mortgage/ lending opportunities.

Martin
 

eric pisch

Novice Member
Are you talking about factoring ?
no just an unsecured loan for 18 months, I often do it as contracts kick in finish, on paper my credit rating is very high, i used to be able to get loans in 3 mins at the drop of a hat with my past record, but now its like i have 3 CCJs and have gone bankrupt.

I have a personal banker who i have used for a very long time and who is very senior in the bank (one below VP) and the tales of woe and cash problems this bank has worry the hell out of me and there one of the biggest in the world ....
 

kopchoir

Banned

eric pisch

Novice Member
whats factoring may i ask??
its a way that companys can sell there invoices for work they have done and get paid instantly rather than waiting 30-120 days for the customer to pay, the factoring company charges for doing this and then gets paid the invoice when its due, aids cash flow
 

evilgenius

Novice Member
Had a meeting this morning with my Bank Manager who said that his bank (one of the big 4) hadn't closed any doors to new lending and that they were still very active in looking for new mortgage/ lending opportunities.

Martin
which bank may i ask?
 

Kieron

Distinguished Member
Me and my wife are coming out of a deal with Abbey in a few weeks time and while our home is worth 190k our mortgage is only 62k. So wed like to borrow some xtra for home improvements, 35k extra.

We are finding it next to impossible to find decent deals. I mean with all the credit problems in the UK you'd think they would be offering competitive rates not actually putting the rates up higher.

Has anyone any advice they could offer regarding this or comments? Should we hold off until things calm down in the UK or what? Its incredibly frustrating tbh.
Doesn't woodywizz do this for a living - maybe pm him?
 

Razor

Member
Me and my wife are coming out of a deal with Abbey in a few weeks time and while our home is worth 190k our mortgage is only 62k. So wed like to borrow some xtra for home improvements, 35k extra.

We are finding it next to impossible to find decent deals. I mean with all the credit problems in the UK you'd think they would be offering competitive rates not actually putting the rates up higher.

Has anyone any advice they could offer regarding this or comments? Should we hold off until things calm down in the UK or what? Its incredibly frustrating tbh.
Get yourself a decent FA and you will get a mortgage easily. Especially as you have so much equity.
 

signs

Banned
I was talking to a guy a few weeks back who has 3/4 properties(can't remember) , he told me he financed the purchases through (is it ?) "the one account" ?

it seems you borrow against the value of your home (equity) , but you do pay about 1% higher for the privilege

i could well be wrong though , and it's something i was told and have not tried
 

Stephen Wilde

Novice Member
The Banks have recently realised that they cannot predict the value of property in the years ahead and so cannot rely on getting their money back in the event of a default. Property is no longer good security.

For example, if it is feared that values could drop 30% over the next few years then to be on the safe side a Bank will not lend more than 60% of current valuation and such valuations are currently very cautious because surveyors don't want to get screwed over as they were last time.

In addition they will filter new loans very carefully. Any risk factor such as self employment or working in a job which is sensitive to the general consumer market will be taken into account more than before.

When they do identify an acceptable risk profile they will press for a high rate to increase their safety net.

Base rate is now wholly detached from economic reality which is demand and supply related. It cannot be centrally directed in a free society.
Thanks Mr. Brown.

Depending on their particular positions at any given time Bank representatives cannot be relied on to be open and truthful because the information is commercially sensitive.
 

Henryslater

Novice Member
The boss works for a F.A. and she says her boss is very reluctant to offer his clients mortgages at the moment as the deals are so poor. The point being is that you can easily get a mortgage - it's just that the terms won't be very good. :thumbsdow
 

SeanT

Distinguished Member
its a way that companys can sell there invoices for work they have done and get paid instantly rather than waiting 30-120 days for the customer to pay, the factoring company charges for doing this and then gets paid the invoice when its due, aids cash flow

Just moves their financial difficulties back by a couple of months, and puts them entirely in the hands of the factoring company when they run into trouble.....
 

eric pisch

Novice Member
anyone care to forecast when it will get better, tho it`ll probably get worse before it gets better tbh :(
the danger is its becoming a self fulfilling prophecy

Most of the banks are short of cash after the USA debarcle, its also alot harder for them to borrow money of each other. (The bigger of the UK banks seam worse affected, probably because of a strong exposure to the US market)

This means they make borrowing harder, therefore less money in the system, therefore prices drop abit

Prices drop abit, the banks start to consider property a bad risk as its now on a downward trend, they make lending abit harder, more deposit at a higher rate

Prices drop alittle bit more

The banks looks at the the falling prices and start to think about the US market, they consider property a higher risk and it goes on and on spiraling down, with ever more negative press unstabalising the market and more and more people "batten down for the storm" which again all erodes at the market slowely, rinse and repeat.

So you end up where we are now, Prices have officially droped 1% in the last 12 months, ok not much of a big deal, except prices went up for the first 6 months so the drop is more like 4% over the last 6 months, that starts to worry banks.


However dont forget banks have to lend money to make money. Eventually they will get a glut of cash and start introducing more competative products.

The real question is how to get the bank cash flow going in the next 3 months to stop the above getting out of hand.
 

Pezerinno

Novice Member
To be honest after a huge credit boom a credit bust (crunch) was inevitable really. Lets hope the banks stick to sensible lending in the future (unlikely). I would have thought we will see improvments (if that is what you wish to call it) in 09.
 

funkyspider

Well-known Member
I've just done a remortgage with Natwest. Went for a offset as I have some savings. Just managed to get it sorted the day before the setup fee rose from 399 to 999 !
 

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