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Landlords enjoy windfall from global storm
Comments
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Gorgeous_George wrote: »Do squatters have any idea what a baseball bat is?
Do you know the difference between earning a living and sponging off others?
My post was a fair question, you're is just offensive.
Mods: Is GG's attitude acceptable?
The reason for my question was that there are a lot of landlords saying that they will use any HPC as a means to expand their portfolio, completely unaware that if the value of their assets drop, the banks will force them to pay off a portion of the outstanding mortgage in order to maintain the LTV rate.
In addition, banks are unlikely to be willing to lend money for people to speculate in property in a falling market.
The real experts don't buy during a crash, they buy after around 12 months of stead increases, after the crash, with the cash they made from selling at the last peak.
Many landlords, especially those that joined the market recently, are completely unaware of how different BTL mortgages are from residential mortgages... for example, BTL loans usually allow reposession after 1 missed payment, whereas residential mortgages require you to be a combined 2.5 months in arrears.Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0 -
Do any of you people have the slightest clue what "Margins calls" are?
Do you know the difference between a BTL mortgage and a residential mortgage?
The question has been asked before Squat. So long as a mortgage holder (residential or BTL) is making their repayments, the only time they will have to make a 'margin call' is if they change their Lenders i.e. take out a new mortgage. So this dosen't apply if they're renewing a fixed rate deal, or whatever!0 -
mystic_trev wrote: »So long as a mortgage holder (residential or BTL) is making their repayments, the only time they will have to make a 'margin call' is if they change their Lenders i.e. take out a new mortgage. So this dosen't apply if they're renewing a fixed rate deal, or whatever!
Simply untrue.... BTL mortgages are different.
As all the BTL Hamsters are about to find out.Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0 -
IveSeenTheLight wrote: »I know this is specifically about the rental market in Scotland, this is where I have a vested interest, however I'm sure the philosophy will be the same across other areas in the UK.
http://business.scotsman.com/personal-finance/Landlords-enjoy-windfall-from-global.3761390.jp
Hopefully this will help to explode the myth that BTL's (of which most are based on the mortgage to rent ratio) being forced to sell up.
I think you are right. Not that many landlords have been forced to sell up yet. Most of them are sitting like frogs in a dish of gradually warming water.0 -
As all the BTL Hamsters are about to find out.
But these are individuals (with lives and families bla bla bla), not "hamsters".
What is the etiquette for posting a thread from another board on here?
I don't want to if it is bad manners without permission.
There is a poor bloke who posted on the mortgage board; a victim of valuation fraud.
Some may say a fool but I disagree. He's not a hamster, just a young guy who got caught up in the whole scam...and trusted the professionals; valuers, mortgage co's etc.
Can I put link?0 -
Simply untrue.... BTL mortgages are different.
As all the BTL Hamsters are about to find out.
I'm prepared if margin calls were to happen but I don't think they will.
If Squit Now cares to post a link to a news story where a margin call has been made, on a LL who has not missed a payment, I'll give £5 to the charity of his choice. The offer is open for all of 2008 but can be claimed only once (
).
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
But these are individuals (with lives and families bla bla bla), not "hamsters".
What is the etiquette for posting a thread from another board on here?
I don't want to if it is bad manners without permission.
There is a poor bloke who posted on the mortgage board; a victim of valuation fraud.
Some may say a fool but I disagree. He's not a hamster, just a young guy who got caught up in the whole scam...and trusted the professionals; valuers, mortgage co's etc.
Can I put link?
Of course you can post a link.
I don't think the chap in question will get much sympathy - not even from me. Anyone investing in anything should do their own homework first. There are rewards and risks.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
I tried calling Bradford and Bingley to see if their BTL mortgages contain a margin call clause, they don't. I also asked Northern Rock a few months back the same question and they also said their BTL mortgages didn't have margin calls although TBH I think the woman I spoke to their didn't have a clue what I was on about.
I've read about margin calls existing on BTL mortgages but never managed to find any reference in any bank literature to them.0 -
Gorgeous_George wrote: »Of course you can post a link.
I don't think the chap in question will get much sympathy - not even from me. Anyone investing in anything should do their own homework first. There are rewards and risks.
GG
Here it is..but don't be "I told you so" or mean...you weren't there 2 yrs back when he got conned.
http://forums.moneysavingexpert.com/showthread.html?t=7375150 -
I know many people who have been conned over the years, including me on more than one occasion. I maintain that when it comes to making a significant investment - especially with borrowed money (i.e., other people's money), research and risk assessment is vital.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0
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