News Review - March 4th 2009

BMV in the USA. Our new, fully-managed US foreclosure property investment service is now up and running. Offering a 30% annual return on cash (before you even consider any equity), it's proving incredibly popular so far - most popular investment property on one of the largest property portals in the UK. We also now have up to 60% LTV finance available which brings the cash investment down to just £14,000.

Back to the UK - prior to the expected base rate cuts later in the week, the major banks reactions are already being scrutinised. Lloyds TSB/C&G have already said they will pass on the full cut (assuming there is one) to their customers

Woolwich (owned by Barclays) has done the opposite and put their rates up! Blame for this is on high swap rates, but the general consensus is that the real reason is that Barclays just doesn't have the cash to lend and are pricing themselves out of the market.

The director of Hometrack here discusses when he thinks the mortgage market is going to get back to "normal" i.e. not 2007 levels but enough to enable people to move house and release equity. His conclusion: 18 months or maybe longer. Or shorter.

Buy to let isn't dead - it's just in "funny shape". We know that, but only the sharper parts of the financial and investment press seem to realise it. Still - negative press is good for buying so we can't complain.

Roger Bootle, ex Chief Economist of HSBC is helping us out in that regard with a doom-laden forecast for the housing sector. Residential land values down up to 70%, residential property down 40% peak to trough. Cheery stuff!

Useful Links

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

Latest House price report from Hometrack

Diary of Property Networking Events for the weeks ahead across the UK. (if you'd like to add your event to this, please email me details)