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 mortgages 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).