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The big FHL loan book blows up in their faces thread


spygirl

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Posted

Needs its own thread, away from general properdee and 'Renting in coastal ...'

Theres only 2 BS that do any ammount of FHL lending -Leeds BS and  Cumberland BS.

Leeds think theyve found a magic niche of higher returns. They are wrong.

Cumberland has always done FHS. However, until v recently they would only lend to FHL located with the Lakes district/x miles from Cumbria.

Neither have a fucking clue what they are doing.

CBS old lending restrictions used to limit its risks and exposure.

Now CBS will lend to any brassy Wessy trollop lookign to turn a Barrat house into Mariners Rest FHL ...

https://www.financialreporter.co.uk/mortgages/the-cumberland-enhances-holiday-let-range-with-new-ltvs-and-lower-rates.html

https://www.cumber

land.co.uk/business/mortgages/holiday-let

https://www.cumberland.co.uk/news/the-cumberland-announces-a-robust-financial-performance-during-challenging-year21--

 

What changed at CBS?

New CEO - 

https://www.newsletter.co.uk/business/cumberland-building-society-appoints-des-moore-new-ceo-1047911

Mr Moore has had a career in banking for over 30 years, much of which has been in leadership roles across financial institutions in the province and the Irish Republic, most recently as managing director of First Trust Bank – Northern Ireland’s 4th biggest bank and 5th most profitable company.

You really dont want to be touching anyone involved in baking before 2008 and all  that. esp one from NI/Ireland.

 

 

 

One percent
Posted
11 minutes ago, spygirl said:

Needs its own thread, away from general properdee and 'Renting in coastal ...'

Theres only 2 BS that do any ammount of FHL lending -Leeds BS and  Cumberland BS.

Leeds think theyve found a magic niche of higher returns. They are wrong.

Cumberland has always done FHS. However, until v recently they would only lend to FHL located with the Lakes district/x miles from Cumbria.

Neither have a fucking clue what they are doing.

CBS old lending restrictions used to limit its risks and exposure.

Now CBS will lend to any brassy Wessy trollop lookign to turn a Barrat house into Mariners Rest FHL ...

https://www.financialreporter.co.uk/mortgages/the-cumberland-enhances-holiday-let-range-with-new-ltvs-and-lower-rates.html

https://www.cumber

land.co.uk/business/mortgages/holiday-let

https://www.cumberland.co.uk/news/the-cumberland-announces-a-robust-financial-performance-during-challenging-year21--

 

What changed at CBS?

New CEO - 

https://www.newsletter.co.uk/business/cumberland-building-society-appoints-des-moore-new-ceo-1047911

Mr Moore has had a career in banking for over 30 years, much of which has been in leadership roles across financial institutions in the province and the Irish Republic, most recently as managing director of First Trust Bank – Northern Ireland’s 4th biggest bank and 5th most profitable company.

You really dont want to be touching anyone involved in baking before 2008 and all  that. esp one from NI/Ireland.

 

 

Would he make cakes for gay people?  

  • 5 weeks later...
sancho panza
Posted

to be fair,it's not jsut holiday lets,I think a lot of BS's are going to blow up......again.

Lot claiming CET 1 ratio's 15% ++ but I suspect if you looked into some of those loans you'd see some humdinging car crashes waiting to happem

HousePriceMania
Posted

Leeds

Coventry

Nationwide

Skipton

 

4 BS I expect to outlive

Posted
4 hours ago, HousePriceMania said:

Leeds

Coventry

Nationwide

Skipton

 

4 BS I expect to outlive

Cumberland.

HousePriceMania
Posted
16 hours ago, spygirl said:

Cumberland.

Not heard of them.

might as well say all the B.S. if they have been lending into this bubble.

 

  • 2 months later...
Posted

Now this is interesting.

Major lender refuses to give mortgages on second homes amid crackdown

Leeds Building Society wants to focus on helping more first-time buyers onto the property ladder

ByRachel Mortimer29 July 2022 • 12:57pm

One of the country’s biggest building societies has stopped lending to second home owners amid a Government crackdown on additional properties. 

Leeds Building Society is the first major lender to pull its mortgages for second homes which are not let out, stating it instead wanted to focus on helping more first-time buyers onto the property ladder. 

The country’s fifth biggest building society will withdraw its six second home mortgages tonight, but continue to lend on buy-to-let properties and holiday homes. 

It comes as the Government clamps down on second homes which are sat idle for much of the year. 

Local authorities will soon be granted the power to double council tax bills on additional properties not in use or let out for at least 70 days per year in a bid to deter empty holiday homes in tourist hotspots. 

Richard Fearon, chief executive of Leeds Building Society, said second homes were “not compatible” with getting more people on the property ladder. 

Advertisement

He added: “Second homes reduce the number of properties available for people to live in at a time when housing supply in the UK is inadequate to meet demand and needs to be increased. 

“Any home other than a main residence usually lies empty most of the time, which does not serve the local community or contribute to the local economy.” 

There are almost half a million second homes in England, according to official data. 

The pandemic triggered a surge in second home ownership, but friction with locals has become increasingly common.

Second home owners have been accused of driving up house prices for first-time buyers and leaving homes empty in small communities. 

Regional powers are expected to be granted to local authorities to restrict people renting out their second homes for fewer than 90 days to tackle the issue. 

Mr Fearon said the Government’s tax and policy clampdown had not influenced the lender’s decision to pull its second home mortgages. 

“It was a successful part of the business for us and so stopping lending on second homes was a big decision. But ultimately it was not in keeping with our purpose as a building society to help first-time buyers,” he added. 

Advertisement

A targeted crackdown has begun in second home hotspots such as Whitby and Brighton. Residents and councillors recently voted to ban people buying new-build properties as second homes in a bid to ease local housing crises.

A similar clampdown has been rolled out in Wales, where the maximum level at which local authorities can set council tax premiums on second homes and long-term empty properties will rise from 100pc to 300pc in April next year.

Council tax premiums were paid on an estimated 23,000 properties in the country this year, according to the government website.

The FHL ones will be next.

LBS are in riskoff mode.

Must have been war gaming your loan book.

One percent
Posted
21 minutes ago, spygirl said:

Now this is interesting.

Major lender refuses to give mortgages on second homes amid crackdown

Leeds Building Society wants to focus on helping more first-time buyers onto the property ladder

ByRachel Mortimer29 July 2022 • 12:57pm

One of the country’s biggest building societies has stopped lending to second home owners amid a Government crackdown on additional properties. 

Leeds Building Society is the first major lender to pull its mortgages for second homes which are not let out, stating it instead wanted to focus on helping more first-time buyers onto the property ladder. 

The country’s fifth biggest building society will withdraw its six second home mortgages tonight, but continue to lend on buy-to-let properties and holiday homes. 

It comes as the Government clamps down on second homes which are sat idle for much of the year. 

Local authorities will soon be granted the power to double council tax bills on additional properties not in use or let out for at least 70 days per year in a bid to deter empty holiday homes in tourist hotspots. 

Richard Fearon, chief executive of Leeds Building Society, said second homes were “not compatible” with getting more people on the property ladder. 

Advertisement

He added: “Second homes reduce the number of properties available for people to live in at a time when housing supply in the UK is inadequate to meet demand and needs to be increased. 

“Any home other than a main residence usually lies empty most of the time, which does not serve the local community or contribute to the local economy.” 

There are almost half a million second homes in England, according to official data. 

The pandemic triggered a surge in second home ownership, but friction with locals has become increasingly common.

Second home owners have been accused of driving up house prices for first-time buyers and leaving homes empty in small communities. 

Regional powers are expected to be granted to local authorities to restrict people renting out their second homes for fewer than 90 days to tackle the issue. 

Mr Fearon said the Government’s tax and policy clampdown had not influenced the lender’s decision to pull its second home mortgages. 

“It was a successful part of the business for us and so stopping lending on second homes was a big decision. But ultimately it was not in keeping with our purpose as a building society to help first-time buyers,” he added. 

Advertisement

A targeted crackdown has begun in second home hotspots such as Whitby and Brighton. Residents and councillors recently voted to ban people buying new-build properties as second homes in a bid to ease local housing crises.

A similar clampdown has been rolled out in Wales, where the maximum level at which local authorities can set council tax premiums on second homes and long-term empty properties will rise from 100pc to 300pc in April next year.

Council tax premiums were paid on an estimated 23,000 properties in the country this year, according to the government website.

The FHL ones will be next.

LBS are in riskoff mode.

Must have been war gaming your loan book.

I’m calling bollox. Whitby councillors have not voted to end second home ownership. 

Posted
10 hours ago, One percent said:

I’m calling bollox. Whitby councillors have not voted to end second home ownership. 

The small banks n BSes could not competed with big boys so started entering the 'specialist' loan market.

Specialist = stuff so unusual andor risky than the likes of HSBC wont touch.

The smalls banks n BSes kidded them selves that their genius underwriters were able to find risk free lenders where HSBC could not.

Its BS.

As IR tick up, all those loans will start going bad, and the small banks n BSes loan book will turn to shit.

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