Buy to let broker Mortgages for Business is seeking to reassure landlords worries that the values of their properties will crash.
The firm’s director, Jeni Browne, says: “Lenders are taking stock while the current turbulence in the market settles. Lenders who have withdrawn their products will return with new pricing – some are citing by the end of the week, others are less committal about time frames.”
She makes her bid for reassurance after almost 1,000 mortgage packages were pulled overnight from the British market in panic after the mini-Budget of Chancellor Kwasi Kwarteng.
Moneyfacts, the independent mortgage market monitor, says 935 out of 3,596 mortgage products had disappeared between Tuesday and Wednesday, double the previous record of 462 at the start of the pandemic lockdowns.
But Mortgages for Business says this is likely to be temporary.
“All [lenders] remain committed to returning to fixed-rate lending imminently. I expect mortgage rates to continue to rise as well.
“With this volatility in play, it is never more important to seek the advice of a broker and come prepared with all your documents to secure the best rate.
“Projections for house prices and yields remain strong due to the ongoing demand for properties from both renters and buyers. The pound will stabilize, energy prices will drop, and landlords are unlikely to see the value of their property crash.”
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What total and utter rubbish
😂 not a chance, in my local area a house which had been on only 2 months had a price drop of £15k, that is highly unusual, they were selling in a week or so back in spring, not now. It is changing and we had better be ready for it.
I put a house up for sale in August. Online agent. Only had 1 enquiry. But photos are terrible as it’s tenanted with mess everywhere!
There is a lot of reduced property around, but could just be that initial asking prices had become really excessive, due to agents competing for new instructions. I have a friend had to change agents twice and drop from £300K to £250K to get a sale (not a rental property) clearly first agent had suggested ridiculous high asking price.
Nick its always much easier to sell once tenants have gone. Not only is the place a mess (and usually the garden is a bramble patch) but they can be obstructive with viewings. Good luck though, hope you get your house back soon. Once they have gone maybe change agents and get better photos. I use a local agent who charges 1% inc vat and find they are much better than the online ones.
Plenty here were going Sale Agreed and then falling through.
I remortgaged one of mine at a valuation of £300K back in April. House next door was sale agreed at £325K. The valuer said he was squeamish about anything over £300K for that street. House next door fell through and went back on the market at £375K. Reduced to £350K, sale agreed, fell though again, still on market at £350K.
Is it greed, poor advice from estate agents or not being able to afford to sell for less by the time fees and SDLT on a new house have been factored in?
The only thing that really matters is what a professional valuer values the house at.
Sad Landlord,
Thanks. I understand and agree. She keeps reporting endless repairs so one of the reasons to put it up for sale now rather than later was to overcome the endless retaliation eviction claims. I don't expect to sell it with her there in it now at all.
I marketed mine online myself. But I put a little optimistic figure in and have since down 2 reductions totalling £30k to make it look better value.
Over priced properties -- An article in the local Norwich paper couple of days ago, agent cannot understand why he's not getting any interest in a property with river views, 3 bed semi ex council house on the edge of the Larkman council estate £345k , at least £100k over priced
Advertorial. Nothing else.
Now is not the time to do anything - making big decisions during periods of turmoil is likely to result in a bad decision.
I am sitting tight and waiting for the hurricane to pass - it will, it always does.
Good luck everyone.
Totally agree, although if you have any fixed term deals ending soon then you can't avoid it completely.
Has anyone had an estate agent or mortgage broker suggest there’s going to be a crash ever? Of course not …Turkeys don’t vote for Christmas!
I disagree. Half the country voted for Brexit
Nick document everything that happens along with photographs. If you can afford a surveyor to go round and catalogue everything it would help. You can refer to property use prior to problem tenant, It will help. As much independent corroboration will help, get builders etc to give you quotes for work. Doing your own will be discarded as interested party.
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