Buy to Let is the British subprime

Conrad

sarkin wrote: »

I think a lot of people who are in it for the long term now wish they could pack it all in.

I had some B2Ls and sold in 06/07 as I found it too stressfull worrying about the market.
Came to the conclusion it's better to pay down main mortgage asap with a One Account then save like mad thereafter. I'm hopefuly about to fully clear the mortgage on my office premises (cant quite work out whether better to put into the One Account or clear the shop mortgage)

Conrad

sarkin wrote: »

As for not advertising, do you know of a company besides yourself that does not advertise, sounds kind of strange to me.

(thread drift)

Plenty of firms do not advertise. Some plebby brokers seem to need to buy in leads - now thats strange!
My builder mate is always busy and never advertised and same goes for a local electrician and bathroom fitter both of whome you have to chase and more or less beg them to do a job!

I've never done much in the way of marketing.

Anyway, I'll leave it here, as it's off topic.

Pobby

A friend of mine Stateside is a mortgage broker and has done one, yes one deal since last year. When I asked her how many people lied on the application form she replied`` all of them`` !

carolt

Yes, I think 'lie to buy' ie self cert is going to be a huge problem here. We were effectively invited to lie by our broker to get a mortgage deal we would otherwise have struggled to get (we didn't even though my income was basically zero at the time due to having just had a baby, and in the medium-long term, could only go up!). So I know it certainly did go on.

Loads of anecdotal evidence out there - I find it hard to believe that there was any other way lots of ordinary people doing ordinary jobs (down south, anyway) could have afforded to buy average-priced property in the last 5 years or so.

mr.broderick

carolt wrote: »

Yes, I think 'lie to buy' ie self cert is going to be a huge problem here. We were effectively invited to lie by our broker to get a mortgage deal we would otherwise have struggled to get (we didn't even though my income was basically zero at the time due to having just had a baby, and in the medium-long term, could only go up!). So I know it certainly did go on.

Loads of anecdotal evidence out there - I find it hard to believe that there was any other way lots of ordinary people doing ordinary jobs (down south, anyway) could have afforded to buy average-priced property in the last 5 years or so.

so you are saying self cert mortgages are the reason we are in this mess?

m00m00

mr.broderick wrote: »

so you are saying self cert mortgages are the reason we are in this mess?

one of the reasons

there is no one clear cut reason other than the blindingly obvious one


house prices were too high relative to incomes.

brit1234

mr.broderick wrote: »

so you are saying self cert mortgages are the reason we are in this mess?

Yes they are clearly a significant part of the problem. Many first time buyers were completely priced out of the market. Some of those were susceptible to dodgy mortgage brokers and some bank workers who inflated wages. Some of this was done by a string of fake document makers like potentially the link below.

http://www.ukclassifieds.co.uk/replacement_payslips_p60s-o7544.html

All this with the other factors of buy to let, gift deposits and loose lending helped to create this countries biggest ever property bubble.

mr.broderick

m00m00 wrote: »

one of the reasons

there is no one clear cut reason other than the blindingly obvious one


house prices were too high relative to incomes.

Relative to your income moomoo? No one has the right to be able to afford to buy a house you know...

mr.broderick

brit1234 wrote: »

Yes they are clearly a significant part of the problem. Many first time buyers were completely priced out of the market. Some of those were susceptible to dodgy mortgage brokers and some bank workers who inflated wages. Some of this was done by a string of fake document makers like potentially the link below.

http://www.ukclassifieds.co.uk/replacement_payslips_p60s-o7544.html

All this with the other factors of buy to let, gift deposits and loose lending helped to create this countries biggest ever property bubble.

It is going to get bigger...sooner than you think

Gorgeous_George

The major reason is the credit crunch caused primarily by dodgy American mortgages. Without the credit crunch, properties would still be somewhere near their peaks because they are based on what the banks will lend (if the bank will lend enough, buyers will pay it).

However, the effect of higher mortgages and tighter lending means those 'owners' whose homes fall into negative equity or below the tighter BTL LTV lending policy will struggle and lead the market lower still.

GG