Member Info for longtimeinvestor

Park

There is a common misconception that mortgage lenders auction off repossessed properties at rock-bottom prices. In reality, mortgage lenders have a legal duty to the borrower to sell repossessed properties for the best price they can get.

To satisfy their duty to get the best price they reasonably can, a mortgage lender should place a property on the open market. Whilst a repossessed property may be sold at auction many are marketed in the usual way through estate agents.

https://www.housingrepossessions.co.uk/what-happens-when-lenders-sell-repossessed-properties.html#:~:text=There%20is%20a%20common%20misconception,best%20price%20they%20can%20get.

Park

''A low loan to value is not fool proof.''

You would need a very large drop in prices to be a concern for Lloyds, so no need for sleepless nights .

Park

''The relation to lloyds is default payments to lloyds.''

mortgage holders whether btl or not will have the same treatment

''Repossed houses that always sell below market value plus administration costs and lack of payments over such period.''

a selling price is the market value. Lloyds have a low ltv ratio.

I imagine someone taking out a Lloyds btl mortgage needs a good deposit amount.

Tav

core inflation has gone up to 6.8% - inflation needs to come down - whatever it takes

Park

''Whats if the same scenario for 2,3 or more properties?''

I cannot see what your point is, in relation to lloyds.

A landlords rental income is a problem for them. They have the option to sell the property if they so wish. If a landlord doesn't pay a mortgage they will be treated like anyone else.

Tav

Yes, interest on cash has certainly been more attractive recently.

This is an alternative for people not wanting risk.

Tav

''divi income from shares needs to be north of 7, hence share prices are falling ''

not again - dividend yield does not determine a share price.

The yield at Vodafone must now be getting on for 10% . The very high yield has not prevented the share price going down to the current price of less than 79p

Park

''You are forgetting in the past there weren't such things like mobile phones, broadband, Netflix etc.''

broadband, Netflix etc are not essential. Mobile phone costs can be little different to a landline phone cost that people had for decades.

''All expenses...''

not essential

''''

''The original mortgage may have been low ltv ...but what about people who have added, remortgaged...took our secured loans on the same property?''

what about them? Lloyds ltv ratio is low. People are still in jobs

''BTL mortgages...the tenants struggle to pay...who pays then?''

If a tenant cannot pay the rent then they lose the right to live in the property.

''PPI markets.''

PPI payments

Park

''park

''So you can rejoice on high rates feeding lloyds profits...but this will be eaten by defaults and evictions.''

Lloyds have a low LTV ratio on their mortgage book.

Mortgage rates are still not expensive by historical standards.

People are still in work

BLB

''So why does the market not agree with you, are you better than the market? If your statement is true why are investors not snappIng it up.''

It is quite clear - I have already said pre tax profitability in 2022 was far higher than when the share price was 89p as will 2023 be.

Lloyds had to pay over two thirds of the current market cap in PPI markets.

Instead now Lloyds have greater funds available to return to shareholders.

Investors are snapping up Lloyds shares everyday. Lloyds via UBS are doing the same.

NC

re 8:33

your record is stuck again

S123

''LBG is only worth 45p a share''

well if you are quick,you could sell for a bit more than that

At a little over 79p

In the financial year when LBG share price hit an all time high, pre tax profits were about £1.4 Billion.

2022 pre tax profits was about £7 Billion.

It is Lloyds shareholders retaining their shares who have effectively been doing the takeover of other shareholders stakes in the business.

S123

''Please be correct''

what is incorrect?

S123

You can purchase some shares currently at about 46p but not 66 Billion

S123

can you not read?

I said -''Lloyds banking group is a better business now than when it reached an all time high of about 89p.''

THAT is the point

S123

and?