It looks like the stronger banks are pushing on regardless: Barclays, the parent company of Woolwich, reported pre-tax profits for the last six months of £2.98bn. Strangely, this was almost exactly the same amount that HSBC posted (isn’t that a bit weird? - two massive, complex corporate giants posting almost the same amount of profit – anyway, I digress…).

This was in sharp contrast to the poor relation, Northern Rock, who reported a loss of £724m. The interesting point about Northern Rock is that despite their losses on old loans, they are still in the market for new business – in buy to let they still have a couple of useful niches, namely:

1.  Will remortgage within 6 months (albeit on the original purchase price not valuation)

2.  Will lend on up to 4 flats on one single title.

What we need in the UK is the emergence of some semblance of competition, as is happening in the States. With the possible break up of Northern Rock mooted to be on the cards ready for a swift return to the private sector, this could pave the way for some new (or old) lenders entering the market. We can but hope.

Sale and Rent back: Following regulation last month of sale and rent back firms, the FSA are now starting to crack down on companies not complying.  There are no current buy to let lenders operating in this market anyway, (however, I’ve now heard rumours of 3 possible new entrants in the coming months); so if you do come across this situation, then make sure you either leave well alone, or probably a better option is pass it on to one of the regulated companies now offering introducer fees for this type of business (if you want a list then just email me).

Tip of the week – If at first you don’t succeed, try again!

One of our main buy to let lenders, BM Solutions, has been notorious in the last few months for declining people based on their internal credit score, even when your credit file is spotless.

As I have said in many newsletters now, their credit scoring process isn’t just based on your credit file, but also a number of other mysterious factors known only to the risk department of BM.

Get to the point I here you say: Well, whilst we have seen a number of clients failing credit scores over the last few months we have also noticed that this has been happening less and less in the last few weeks.  Actually we have seen significant increase in the pass rate over the last week.

So if you are someone who failed a BM credit score in the last few months (or even weeks), then do give us a call and we can try again. Their credit score process leaves a soft footprint on your credit file (which means you can see it but other lenders can’t). So what are you waiting for?

Call one of our advisors today for more information 01424 205 373