ochomesales.info

With buy to let mortgages being ready available before the downturn in the economy the federation has asked that all they now are regulated in the same way that mortgages are done.

With them being considered a business opportunity they did not attract the same guidelines of affordability as mortgages.

The BPF wants the FSA to regulate them the same way it does its mortgages so that when the economy has gained in strength banks will not have the same approach to lending and hopefully avoid them lending money irresponsibly.

Ian Fletcher of the BPF said

Many lenders simply threw money at buy-to-let borrowers during the boom without sufficient checks on who they were lending to or what they were lending for.

He also added

we need to make sure the property-fuelled meltdown doesn’t happen again. Professional landlords have suffered as a result of banks refusing to lend. If landlords can’t expand or invest in new homes, it hurts all areas of society.

With economic downturn many investors in the real estate industry are not completing on property deals because of cash flow but now they have something to fear, lawyers have warned if they do not complete on their deal they can still be forced to buy then after a court injunction.

When house prices continued to rise many buy to let investors were very quick to jump on the band wagon and buy houses and now that mortgages are much harder to get and many of them how have signed contracts have realised that the profits are not as high as expected and wish to pull out.

Developers have told them that this is not an option as they have committed to build them and they can not apply to court and ask for a specific performance which will make the buyer continue on the contact and complete the agreement .
With the down turn all developers are looking into how they can protect their assets and seek help from the courts to enforce them.

House prices over the last few months have been enjoying a steady rise but this is going to be short lived and they will soon drop again.

The predictions said that the house market would fall by 30 per cent from October 2007 boom and they still say that house prices even though have gone up slightly still have around 17 per cent left to fall.

With unemployment rising and is set to continue till 2011 and with peoples wages not rising and the poor availability of credit will only bring down house prices, as the recent lack of cash rich buyers and not a great supply will only add to the downturn.

Tesco has launched its own bank (Tesco Bank) but the supermarket has said it will not be doing mortgages and current accounts till 2011.

Tesco has decided that is wanted to do away with its old name of Tesco Personal Finance and rename it,

“We wanted a name that does what it says on the tin.”

Tesco bosses said.

In the meantime Tesco still plans to offer insurance products loans and credit cards, they have signed up over 300 thousand customers so far this year making a total of over 6 million and have made a profit in excess of £115 million.