How Banks Price Mortgages - Daryl Norkett

12/14/23 • 38 min

The Rodcast - Property, Business, Investment

I spoke with Daryl Norkett the Head of Real Estate Proposition at Shawbrook Bank, one of the biggest Buy to Let and property investment lenders to discuss how mortgages work from the banks point of view.

You can also watch this episode on our youtube channel https://youtube.com/@rodcastITP?si=MbqPWAGHJEmlvcfZ please don't forget to subscribe and hit the bell icon.

This episode is vital listening for investors concerned about mortgage costs and who want to understand which factors affect pricing.

With the emphasis being on SWAP rates for the last year or two, hear how deposit led banks could be affecting mortgage pricing in this higher rate environment

Daryl gives a great run down of what has been happening in the mortgage market over the past 12 months.

What he feels needs to happen in order for mortgage rates to go down and what the time lag between those events happening and the price cuts occurring will be.

What makes some lenders pull mortgage deals while others wont need to.

How the high arrangement fees on many mortgage products affect the banks risk in terms of loan to values.

And lots more ...

How National Insurance cuts and fiscal drag can affect property investors portfolios in different ways.

If you have requirements for Buy to let mortgages, commercial mortgages, Development loans or bridging Loans then please contact [email protected] our sponsor who has done an amazing job of financing all aspects of my portfolio.

Hosted on Acast. See acast.com/privacy for more information.

You can also watch this episode on our youtube channel https://youtube.com/@rodcastITP?si=MbqPWAGHJEmlvcfZ please don't forget to subscribe and hit the bell icon.

This episode is vital listening for investors concerned about mortgage costs and who want to understand which factors affect pricing.

With the emphasis being on SWAP rates for the last year or two, hear how deposit led banks could be affecting mortgage pricing in this higher rate environment

Daryl gives a great run down of what has been happening in the mortgage market over the past 12 months.

What he feels needs to happen in order for mortgage rates to go down and what the time lag between those events happening and the price cuts occurring will be.

What makes some lenders pull mortgage deals while others wont need to.

How the high arrangement fees on many mortgage products affect the banks risk in terms of loan to values.

And lots more ...

How National Insurance cuts and fiscal drag can affect property investors portfolios in different ways.

Hosted on Acast. See acast.com/privacy for more information.

Previous Episode

Autumn Budget News for Property Investors

In this episode I run through the points of the Autumn Budget that are relevant to the Property Industry including parts that were not in Jeremy Hunts speech.

Largest ever increases to minimum wage.

LHA increased to 30th percentile of local rents.

Freeze on how Business rates are calculated and the discount in leisure, retail and hospitality is extended.

£3mil invested into pilot schemes to improve the process of buying and selling homes.

A consultation to start early next year on a new PD right to split a house to 2 flats.

Annual Tax on Enveloped Dwellings (ATED) to increase by 6.7%.

Guaranteed accelerated planning decisions on big developments in exchange for a fee.

Local development orders to speed up planning decisions for key commercial developments.

£110 million to deliver schemes to offset the stall on nutrient neutrality.

Affordable Homes Guarentee scheme to expand by a further £3billion so HA's can access cheaper loans for developing new homes.

£450 million to local authority housing fund to deliver 2,400 new homes for refugees and help homelessness.

£120 million for homeless prevention.

Mortgage Guarentee scheme extended for 18 months which allows buyers to borrow 95% LTV.

To read the Autumn Budget notes in full you can download this document file:///Users/rodturner/Downloads/DOC-20231122-WA0019..pdf

As always thanks to our sponsors 978 Finance. If you are looking at finance please contact [email protected]

Hosted on Acast. See acast.com/privacy for more information.

Next Episode

Investment Mastermind Q4 2023

Joined again by Adam Lawrence and Manish Kataria we each pick a specific investment that anyone can do in their ISA or pension and explain the reasoning behind it.

As well as our picks, we discuss;

Pound cost averaging,

changing a portfolio for retirement

Bias to home nations

How value vs growth has performed

Nominal vs real numbers.

How long do you hold specific investments for and what makes you make a decision to sell or not.

Rod's pick is one of the Vanguard lifeStrategy funds which is 100& in equities with a bias to UK and USA. https://www.vanguardinvestor.co.uk/investments/vanguard-lifestrategy-100-equity-fund-accumulation-shares/overview

Adam's pick is Developed countries small cap value ETF https://www.ishares.com/ch/professionals/en/products/317548/ishares-international-developed-small-cap-value-factor-etf

Manish's pick is an energy ETF with a weighting towards American Oil producers https://www.google.com/finance/quote/XLE:NYSEARCA?sa=X&ved=2ahUKEwj71Jn_sb6DAxWOQUEAHYwHCCUQ3ecFegQIKBAX

For more info about the Boardroom Club please email me [email protected]

For information about finance for property investors regarding mortgages and development& bridging loans please contact our sponsors 978 finance [email protected]

Hosted on Acast. See acast.com/privacy for more information.