House prices to crash

[Simster]

Gareth, would you agree that the writing could be on the wall for Mortgage Brokers? If not, when and how do you think your industry will fight back?

The way I see it, the house market is not going to see a boom for well over a decade, and when it does pick up, clearly the need to go through a broker isn't what it was.

 

[Simster]

You already get taxed on rental income.

I've since realised that too!

But I do think that owning a second house should be actively discouraged because of the damage it does to the market for first time buyers.

 

[User removed 4]

also, properties can be held in a pension, so with the tax relief you can potentially take quite a large hit and still be ok.

I'm pretty sure only commercial property can be held in a pension.

 

[islingtonseagull]

I am an independent financial adviser who brokers Mortgages. Nationwide take ages to answer the phone.

We get paid, I have just double checked.

You learn something new every day.

 

[islingtonseagull]

Residential proeprty in a pension is a big no no.

You can do it, but you need to set up a company and it needs to have a minimum ammount of shareholders holdingh a maximum share each.

 

[beorhthelm]

I would not get paid anything for it. Thats possibly why the other guy did not recommend it but I couldn't comment.

well quite. but he didnt even ask about it, just assumed one had already decided to buy a new mortgage product (and it does feel lik you are buying somthing now with ubiquitous "arrangement" fees)

Santander are not your main street bank but are going that way. They have just brought hundreds of old RBS offices. Nationwide are not a bank they are a building society. Halifax is part of Lloyds Group.

And yes RBS is part of Nat West Group.

obviously you share a different point of view on Santander, until the take over Abbey and A+L were on most high streets in the UK, i have TWO branches of Santander on my high street. I dont see why Nationwide gets excluded when they are one of the (if not the) largest lenders, never mind that they aren't a bank. and Natwest was very much brought by RBS, its RBS listted on the LSE, not the other way round.

 

[Uncle Spielberg]

Gareth, would you agree that the writing could be on the wall for Mortgage Brokers? If not, when and how do you think your industry will fight back?

The way I see it, the house market is not going to see a boom for well over a decade, and when it does pick up, clearly the need to go through a broker isn't what it was.

The industry will be wiped out by 2012 unless something changes and fast. The likelihood is the only option for people will be their Banks and that marketplace is not good for all the reasons I have given. Time to consider Solar panels I reckon.

 

[Uncle Spielberg]

well quite. but he didnt even ask about it, just assumed one had already decided to buy a new mortgage product (and it does feel lik you are buying somthing now with ubiquitous "arrangement" fees)




obviously you share a different point of view on Santander, until the take over Abbey and A+L were on most high streets in the UK, i have TWO branches of Santander on my high street. I dont see why Nationwide gets excluded when they are one of the (if not the) largest lenders, never mind that they aren't a bank. and Natwest was very much brought by RBS, its RBS listted on the LSE, not the other way round.

He should have done a full factfind before quoting or recommending anything. There would be a page on the factfind for " existing mortgages ". He should also have given you a business card and an idd and explained his status. He should have told you he used a preferred panel of lenders. He gave crap advise if he did not even ask about an existing mortgage you could port but it does not surprise me as this happens every day in Banks and Estate agents.

 

[Uncle Spielberg]

Nationwide are very much small fry at the moment. They have liquidity problems as their lending model is based on lending 70% from their savers which has been hit hard with the crap interest rates being offered to savers.

 

[Mr Burns]

The industry will be wiped out by 2012 unless something changes and fast. The likelihood is the only option for people will be their Banks and that marketplace is not good for all the reasons I have given. Time to consider Solar panels I reckon.

I dont see a need for mortgage brookers in the age of the internet.
I recently got a mortgage, and done a quick search on the money sites,ie lovemoney, moneysupermarket etc, and found one myself.

I did get in touch with a mortgage brooker, and she couldn't get close to the rate I found.

In the old days you had to call into every bank too get the bst rate, now you can do it in the time its taken me to type out this reply.

The mortgage brooker is going the way of the milkman. They'll see be a couple knocking around if you look heard enough, but no one needs them anymore. And as most people who are looking for mortgages are younger internet savy, what purpose do they serve now?

For those looking for a mortgage, check out the money sites, or have a loo at Royal Mail mortgages. Believe it or not One of the best around for the past couple of months or so

 

[Simster]

I dont see a need for mortgage brookers in the age of the internet.
I recently got a mortgage, and done a quick search on the money sites,ie lovemoney, moneysupermarket etc, and found one myself.

I did get in touch with a mortgage brooker, and she couldn't get close to the rate I found.

In the old days you had to call into every bank too get the bst rate, now you can do it in the time its taken me to type out this reply.

The mortgage brooker is going the way of the milkman. They'll see be a couple knocking around if you look heard enough, but no one needs them anymore. And as most people who are looking for mortgages are younger internet savy, what purpose do they serve now?

For those looking for a mortgage, check out the money sites, or have a loo at Royal Mail mortgages. Believe it or not One of the best around for the past couple of months or so

I'm afraid this is the truth. I do feel sorry for mortgage brokers as a breed. Unlike some of the other middlemen/agent type of industries, it is well regulated and requires qualifications so that they know what they are talking about. However, I have to agree with you really. I just think they will become very much a niche requirement, serving to provide knowledge on very specific/bespoke mortgages for people who don't follow a fairly well-worn lending pattern.

 

[Gwylan]

The mortgage brooker is going the way of the milkman.

Don't see the parallel here. The mortgage broker is a middleman, the better analogy is a travel agent - how many people use them to book a holiday.

One thing that the Internet can't do is deliver milk first thing in the morning though - our milkie seems to be run off his feet.

 

[Mr Burns]

Don't see the parallel here. The mortgage broker is a middleman, the better analogy is a travel agent - how many people use them to book a holiday.

One thing that the Internet can't do is deliver milk first thing in the morning though - our milkie seems to be run off his feet.

The milkman around our way used to deliver to every house, now he hardly stops anymore. Mind yo he is a miserable ****, so maybe people stopped using cause of that

I think ou'' find the milkmen is the middle man as well. At least I hope he is!

 

[Lokki 7]

I've since realised that too!

But I do think that owning a second house should be actively discouraged because of the damage it does to the market for first time buyers.

Are second home buyers bidding up 1 bed flats in urban areas? (And to clarify, a second home is a secondary residence for yourself so not a residential let.) I find that hard to believe, in which case I don't see how it can have the effect you suggest on first time buyers.

As has already been pointed out, first time buyers have plenty of routes to market, it's just that they often don't want to live in those areas/ small flats/ ex-council etc etc.

 

[Gwylan]

The milkman around our way used to deliver to every house, now he hardly stops anymore. Mind yo he is a miserable ****, so maybe people stopped using cause of that

I think ou'' find the milkmen is the middle man as well. At least I hope he is!

Well yes, but in that sense every shopkeeper is a middle man. I meant that the Internet could replace brokers and agents in a way that it couldn't with the milkie.

 

[Uncle C]

As has already been pointed out, first time buyers have plenty of routes to market, it's just that they often don't want to live in those areas/ small flats/ ex-council etc etc.

Absolutely correct. Many want to start at the semi with garage, and then furnish it with all the obligatory items like big flat screen TVs.

 

[Uncle C]

London down 4.4% overall in August


Wandsworth £509,296 £542,870 -6.2%
Brent £526,619 £561,278 -6.2%
Richmond-upon-Thames £588,576 £626,919 -6.1%
Kingston-upon-Thames £553,527 £588,938 -6.0%
City of Westminster £1,195,667 £1,270,752 -5.9%

That'll teach all those bloody foreigners for buying up our Capital City.

 

[Simster]

Are second home buyers bidding up 1 bed flats in urban areas? (And to clarify, a second home is a secondary residence for yourself so not a residential let.) I find that hard to believe, in which case I don't see how it can have the effect you suggest on first time buyers.

As has already been pointed out, first time buyers have plenty of routes to market, it's just that they often don't want to live in those areas/ small flats/ ex-council etc etc.

Actually, I meant residential lets as opposed to a second home.

 

[Lokki 7]

Actually, I meant residential lets as opposed to a second home.

Ok then there is a much stronger case. But the fact is that people do need a supply of residential properties to rent so who should own these in your opinion? Large institutions? Gangster landlords? I'd much rather there were a stock of well maintained properties available from decent landlords. And the fact is that most private landlords who jumped on the bandwagon lost money, so the idiots got what they deserved via the market without any intervention necessary from government.

 

[Uncle Spielberg]

Don't see the parallel here. The mortgage broker is a middleman, the better analogy is a travel agent - how many people use them to book a holiday.

One thing that the Internet can't do is deliver milk first thing in the morning though - our milkie seems to be run off his feet.

There is quote a lot of hard work involved in getting a mortgage and the most suitable one of a client. The supermarket best buy list does not tell you whether you can actually get the mortgage. Its not like buying a cd or even a holiday. Still not there is no convincing some people of the validity of what I do so thankyou for understanding. If my industry is gone and it could well be I hope I can utilise my skills in another profession but at 48 this month most doors are slammed in my face.