News Review - February 24th 2009

Mortgage News Update

The Mortgage Works have withdrew their entire mortgage range on Tuesday. Perhaps a reaction to similar weekend activity from other lenders, see below. They will replace the range at some stage this week but have announced that they will no longer deal with limited companies so the new range will be somewhat reduced. Further proof that we are losing diversity and choice amongst the lenders that actually remain in business.

BM Solutions withdrew their entire Buy to Let range over the weekend and now only have one product for new business at 75% LTV – a 5 year fixed rate product!

At the same time Cheltenham & Gloucester have streamlined their product range and only have 3 year Buy to Let deals – further signs that the two businesses are merging under the Lloyds Banking Group umbrella.

It does seem, however, that the aim is to promote the C&G brand more. C&G rates have improved and 75% is still available on wider range of products although we are yet to see if their application process will be more streamlined.

New deals from Northern Rock may also be forthcoming in the near future now that they've committed to loan out a further £14bn this year.

But Northern Rock’s revival won’t kickstart the property market according to the very-bearish-about-property Money Week

Mortgage deal to write off Lloyds' £480m interest costs - wouldn't it be nice if you could ask your lender to write off your interest payments for a year so you could JV with other property investors?! Borrow a few billion and apparently you can.

Mortgage lending remains stagnant - latest January figures released

Buy-to-let in steep decline apparently - so that makes it a good time to buy as far as we're concerned. Having said this, mortgage finance will continue to be very difficult, so investors really need to get their sources of alternative finance in order. Do be careful though - the government is really cracking down on mortgage fraud, stamp duty and capital gains tax - make sure you know where you stand with any no money down schemes you use.

Home reposessions hit a 12 year high. So times continue to be difficult for homeowners and investors, but for those in the right position, there will continue to be some great bargains out there for some time yet.

Useful Links

Fantastic comprehensive mortgage rates table with full terms and conditions for each product.