The future of B&B and BTL

carolt

http://www.guardian.co.uk/money/2008/sep/30/buyingtolet.property

Interesting involvement from Martin in there too:

Martin Lewis, of the Money Saving Expert website, warned the government that forcing B&B's borrowers to go elsewhere could send many buy-to-let landlords to the brink.

"When Northern Rock was nationalised, in order to help it repay some of its debts, it pushed mortgage rates for those no longer on fixed or discount deals to hideous penalty levels. It's possible the same will happen for Bradford & Bingley.

"This wouldn't be a problem in a normal mortgage market, but right now, especially for those who've over-borrowed, it's incredibly tough to get a new deal. We could start to see nationalised repossessions."

ad44downey

carolt wrote: »

http://www.guardian.co.uk/money/2008/sep/30/buyingtolet.property



Martin Lewis, of the Money Saving Expert website, warned the government that forcing B&B's borrowers to go elsewhere could send many buy-to-let landlords to the brink.

."

Good, they'll be forced to sell and maybe people would be able to afford to buy

BTL mortgages are a curse, no wonder we're in the mess we're in, I'd ban the lot of them

dopester

Martin Lewis, of the Money Saving Expert website, warned the government that forcing B&B's borrowers to go elsewhere could send many buy-to-let landlords to the brink.

Tough. Higher rates, increased LTVs and changing economic circumstances should have been part of their "investment business plans."

No one asked them to risk so much. We wouldn't be having these discussions if they'd invested their monies, or even borrowed monies, in the stock market. Or in to a company. It is their look-out.

I've been waiting patiently to buy a home for a long time, without becoming a total debt slave.

PayDay

carolt wrote: »

http://www.guardian.co.uk/money/2008/sep/30/buyingtolet.property

Martin Lewis, of the Money Saving Expert website, warned the government that forcing B&B's borrowers to go elsewhere could send many buy-to-let landlords to the brink.

Is Martin a BTLer?

carolt wrote: »

"This wouldn't be a problem in a normal mortgage market, but right now, especially for those who've over-borrowed, it's incredibly tough to get a new deal. We could start to see nationalised repossessions."

"The rise of the amateur landlord that became the buy-to-let phenomenon will for ever be associated with New Labour's time in office. In 1998, a year after Tony Blair entered No 10, there were just 28,700 buy-to-let mortgages. Today the total has grown to more than 1.1m."
http://www.guardian.co.uk/money/2008/sep/30/buyingtolet.property

Another c o c k - up by New Labour

Trollfever

Investors have better-than-average repayment record, 1.1% in arrears, against 1.33 for all mortgages

Lies, damned lies, and statistics.

.

mewbie_2

PayDay wrote: »

In 1998, a year after Tony Blair entered No 10, there were just 28,700 buy-to-let mortgages. Today the total has grown to more than 1.1m."
http://www.guardian.co.uk/money/2008/sep/30/buyingtolet.property

NuLabour = BTL
OldLabour = Council Houses.

I know which one I preferred.

ad9898_3

carolt wrote: »

http://www.guardian.co.uk/money/2008/sep/30/buyingtolet.property

Interesting involvement from Martin in there too:

Martin Lewis, of the Money Saving Expert website, warned the government that forcing B&B's borrowers to go elsewhere could send many buy-to-let landlords to the brink.

"When Northern Rock was nationalised, in order to help it repay some of its debts, it pushed mortgage rates for those no longer on fixed or discount deals to hideous penalty levels. It's possible the same will happen for Bradford & Bingley.

"This wouldn't be a problem in a normal mortgage market, but right now, especially for those who've over-borrowed, it's incredibly tough to get a new deal. We could start to see nationalised repossessions."

Agree with dopestar here, tough sh*t, its these people with their greed and speculation that has taken decent FTB housing into the rental sector. There is no housing shortage when you have scum like the Wilsons have 800+ properties to themselves.

I couldn't care less about BTL'rs the quicker they go under, the better. Prices will then come down even faster and it will show up the lie that there is a housing shortage, there isn't.

IveSeenTheLight

ad44downey wrote: »

BTL mortgages are a curse, no wonder we're in the mess we're in, I'd ban the lot of them

mewbie wrote:

NuLabour = BTL
OldLabour = Council Houses.

And without BTL, where would all the renters be staying?
Not everyone wants to buy, some don't, some want but can't and some will never be able to buy.
Where do they go to?

BTL has just replaced the old council houses. If the government hadn't decided to sell them off to reduce they're overheads, there wouldn't be the same rental market and BTL wouldn't have been so enticing.

Having used to live in a council house and seen the level of rental accomodation increased due to landlord competitiveness, I know wihch type of housing I would prefer to live in

Lotus-eater

Just one small point ISTL.
If there hadn't been so many BTL's there wouldn't be so many renters. It seems we in the UK never learn about house prices, we would all be much better off if they stayed flat.

musemad

The annoying thing about the goverment taking over these X building societies is that they are now liabilities on the GOVERMENTS books , and have to be paid for from increased taxes.
So we end up paying increased taxes over the next 20 years or so till the goverment hives them off probably at a pittance to some foreign buyer

carolt

IveSeenTheLight wrote: »

And without BTL, where would all the renters be staying?
Not everyone wants to buy, some don't, some want but can't and some will never be able to buy.
Where do they go to?

BTL has just replaced the old council houses. If the government hadn't decided to sell them off to reduce they're overheads, there wouldn't be the same rental market and BTL wouldn't have been so enticing.

Having used to live in a council house and seen the level of rental accomodation increased due to landlord competitiveness, I know wihch type of housing I would prefer to live in

Whilst I agree that selling off council housing has been part of the problem, the idea that all the renters (a) choose renting for any reasons other than ludicrously high house prices (b) if prices fell, would choose to stay renting and be unable/unwilling to buy - is patently nonsense.

I am a typical example of someone that doesn't apply to.

The fact is, an extra 1.1 million new properties have been taken into BTL (well, probably more - that's the number of outstanding BTL mortgages, which excludes cash buyers and those renting on a standard mortgage, without informing their lenders, of which I am sure there are many) in the last decade. As a private renter previously, I can't say I noticed any remote shortage of housing available for rent prior to that. But I have noticed a serious shortage of affordable housing to buy over the last decade.

I think the mantra 'renters want to rent' is what BTL landlords tell themselves at night to help them sleep. That doesn't make it true.