I found out about the China Deal:

 

100% rental cover (WOW!)

65% LTV (BOO!)

4% rate

No ex-local authority

Above shops are fine

Not NE England, Wales or SW England

Over 4 storeys fine

Min loan £25k

Properties must be 2 hour drive from London, Birmingham, Manchester and Glasgow

They apply 6 month rule so no bridge and remortgage

 

So not a bad product and one to watch.  I want to build a relationship with this bank as they will relax their criteria in good time if they decide to stay.

 

Leumi, an Israel bank, is also moving in.  I think its residential only but it is at a cracking rate of 2.56%.

 

And to boot a Swedish bank is offering high end loans to the struggling rich!

 

So all the UK banks take note.  If you won't lend then the foreigners will.

 

Just another note I had a friend who just put their property up for sale in Central London and they got an offer on the first day of viewings.  Central London is officially live and I think prices are heading north.

 

Then the ripple effect will occur.  Prices start rising in central London and it resounds like a ripple wave and we all benefit eventually as the prices rises filter through. i.e. the owner of a house in central London sells out, buys in zone 2, the owner of zone 2 moves out to zone 3, the owner of zone 3 moves out to zone 4 etc. until we hit Scotland!

 

Speak soon.

 

Ajay

Posted on: 30th Jul 2009