Meet the Wilsons Part2 - Fergus goes mad on Radio 5

Gorgeous_George

With interest rates falling faster than house prices, I guess they will be focussed on rental yields and cashflow.

It is not in their lenders' interests to force the Wilson's into bankruptcy so I guess this pair will be around for a while longer. They'll enjoy a long, financially sound retirment from the rental income but won't make the £millions that they had planned from HPI.

GG

crazygaijin

GGeorge did u not read the article on margin payments?

What if they have to coff up several grand on each of their 900 depreciating houses?

mewbie_2

I would say they are a whisker away from the house of cards tumbling down. Assuming this is an empire built on debt, someone somewhere has to assess that debt and their faith in the Wilsons being able to repay it. If the equity is shrinking faster than a shrinky thing then just insuring it may be problematic.

macaque_2

Gorgeous_George wrote: »

With interest rates falling faster than house prices, I guess they will be focussed on rental yields and cashflow.
It is not in their lenders' interests to force the Wilson's into bankruptcy so I guess this pair will be around for a while longer. They'll enjoy a long, financially sound retirment from the rental income but won't make the £millions that they had planned from HPI.
GG

As to whether the Wilsons will benefit from the falling interest rates will depend on the type of mortgages they took out. On the downside however, they face the certainty of falling rents and rising defaults.

As for lenders forcing the Wilson's into bancrupcy, this will happen by default rather than choice. As mortgages agreements expire these will be replaced with new and much more onerous terms.

ad9898_3

Gorgeous_George wrote: »

With interest rates falling faster than house prices, I guess they will be focussed on rental yields and cashflow.

It is not in their lenders' interests to force the Wilson's into bankruptcy so I guess this pair will be around for a while longer. They'll enjoy a long, financially sound retirment from the rental income but won't make the £millions that they had planned from HPI.

GG

The last I heard, they were trying to sell a few houses which were coming off their 4.25%, 5 year fixed rates. Now I know I'm still on ignore because you're a bit sensitive and all, but perhaps on your behalf maybe someone on the forum could find a similar fixed rate for a BTL mortgage at 90% LTV.

I will save them the trouble, they don't exist. Also they never bought into BTL for yield in the first place, by their own admission, so it's unlikely that any yield they get out of these houses will cover their re-mortgage.

As for enjoying retirement from their rental income:rotfl:, Fergus said on the radio 3 months ago their houses are worth 190 million and their debts were 150 million, which is probably exaggerated.

In reality, I would now say he is in negative equity now, to the tune of 20 million.

Nice pension that.

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GDB2222 wrote: »

This is surely libelous, and a moderator ought really to remove it?

The Wilsons may be in trouble, and indeed quite a lot of people would like them to be in trouble. Saying they are effectively bankrupt without any evidence is a very foolish thing to do, though. It's also unfair, although I'm not sure that the Wilsons majored on 'fair'.

What !, are you serious:rotfl:,in what part of my post have I 'libeled' them, his words, not mine, given the slide in the market since these comments were made, it's a reasonable assumption to make about NE, at no point did I say he was bankrupt nor advise the bank to forclose on them, although I'm glad I didn't lend him any cash.:D

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GDB2222 wrote: »

The bits I have underlined in the quote below?

Well I can hardly edit them now, can I, since you have quoted them. Still I suspect I won't lose any sleep over it.

GDB2222

I've deleted my posts.

mewbie_2

ad9898 wrote: »

Well I can hardly edit them now, can I, since you have quoted them. Still I suspect I won't lose any sleep over it.

Ah, you should have couched your comments in clever legalese like mine.

"Shrinking faster than a shrinky thing" - they can't touch you for that.

PasturesNew

mewbie wrote: »

...

"Shrinking faster than a shrinky thing" - they can't touch you for that.

Is that your catchphrase? For the laydeez?