Feeling Desperate re BTL mortgage - any advice?

sdooley

Might some banks be tempted to use margin calls if they have long term trackers on BTLs?

gfplux

Hello supermum2008.
Try and ignore the people who are not offering the advise you asked for.
If you want to rent out this flat you have to get very focused and work very hard at it. It is a JOB after all being a Landlord.
You need to get up every morning and do something that might get your flat noticed and a tenant in. Not just every other day but everyday and including weekends.
What those things are is up to you.
Try and make a list of who you can see, talk to, pay, shout at, write to and telephone. that list should include putting up notices, signs and adverts. Talk to your existing tenants, they may know someone who is looking. Use them but do not abuse them.
I hope this empty flat and the others are all close by to you and not a long way away.
By the way I hope you are keeping an eye on your existing tenants and keeping them happy as you don't want another trashed property.
Start tomorrow and let us know what you are doing and how you get on.
Good Luck!

rufus_t

Hi Supermum,

First of all ignore the self righteous bunch who just want to laugh at the misfortune of others - I think some people have forgotten the purpose of this forum.

Ok, a couple of thoughts, not knowing the circumstances so may or may not be options.

Try not to panic, it is all about cashflow at the moment. If you can get through the short term and treat these as long term investments, hopefully they will turn around.

Check again your overall portfolio for LTV. See if there is any scope for release from another property either by further advance or remortgage.
A couple of lenders also offer 'portfolio mortgages' - The Mortgage Works are one and I think Paragon still do.

You could consider selling. If you want a quick sale and go via professional buyers - they are typically offering at the moment between 65-75% of market value. Not good unless you have to, and only an option if the outstanding debt is less than this, but if it fits you are likely to get a quick sale. Obviously better to get as close to market value as possible and only use this route if you have no alternative.

Look at your rents on your other properties - are they reasonable, have you any scope for increasing them if they are lower than the going market rate.
Look on www.rightmove.co.uk to get an idea of comparable rents as well as details as to what properties have actually sold for in your postcode.

Are you on interest only mortgages for your BTL's? If not, you could reduce your outgoings here. You could also do this if you have your own residential mortgage, but take professional advice before taking this route.

Not sure who mentioned it, but the 'Singing Pig' forum is a good property forum and worth looking at.

I know its a tough one, but try and avoid missing any further payments at all costs. It is extremely tough to get mortgages at the moment and this will only make it more difficult. Do whatever you can to keep the payments going until times improve.

the usual disclaimer - please don't take this as advice in any way. You should always seek professional advice when dealing with mortgages and other financial issues.

hope this helps - and again ignore those with the negative comments, they obviously have nothing better to do with their time.

Good luck with it.

devils_advocate

Try not to panic, it is all about cashflow at the moment. If you can get through the short term and treat these as long term investments, hopefully they will turn around

"Hope" has got no place in a business plan.

There's an old adage when dealing with investments, which I've found painfully true "the first loss is the cheapest". In practical terms it means that if you're facing a loss to get rid of an investment now, and you don't get rid of it, that loss invariably grows.

A useful analogy would be if you had US Dollars which you wanted to sell in September this year. The rate then was 1.78, and if you looked at the rate in July, you might have decided not to sell in September as you wanted the rate to go back to the 2.00 it was in July. However today the rate is 1.46, so you've effectively lost even more by not selling in September.

If the other properties are performing, you have to seriously think about cutting losses on this one.

Gorgeous_George

Maybe you need to buy some more BTLs so that the total profit covers the loss on this one?

GG

poppy10_2

PasturesNew wrote: »

http://64.233.183.104/search?q=cache:uiplerJMDlMJ:stoke.gumtree.com/stoke/53/25926253.html+sjcollett%40yahoo.com&hl=en&ct=clnk&cd=6&gl=uk

Also advertises on ebay ebay link

"I also an active property investor, but haven't got the same access to funds as I used to - hence why I am now sharing my property hunting knowledge with others."

:rotfl::rotfl::rotfl:

Hillfly

Have you considered putting a nogte through the doors of the other flats in your building. You could offer to undercut their current rent if they were willing to move into your flat?
In fact you could run a private add offering something similar to anyone within your postcode area? That way they are likely to be on a similar rent to that which you desire so the hit wouldn't be too big.
Just a thought - poach a tennant! Best hope Humpty Dumpty doesn't apply though!
Good luck.

Gorgeous_George

You could offer the 12th month free if rent is paid on time. If there is an oversupply, you need to encourage long term tenants.

It's not just about taking the money but I'm sure you know that.

GG

rufus_t

devils_advocate wrote: »

"Hope" has got no place in a business plan.

There's an old adage when dealing with investments, which I've found painfully true "the first loss is the cheapest". In practical terms it means that if you're facing a loss to get rid of an investment now, and you don't get rid of it, that loss invariably grows.

A useful analogy would be if you had US Dollars which you wanted to sell in September this year. The rate then was 1.78, and if you looked at the rate in July, you might have decided not to sell in September as you wanted the rate to go back to the 2.00 it was in July. However today the rate is 1.46, so you've effectively lost even more by not selling in September.

If the other properties are performing, you have to seriously think about cutting losses on this one.

I used the word 'hopefully' as I didn't want to give the impression of certainty or offering advice.

You are right, hope does have no place in a business plan, but how many business plans can use the word 'certainty'. Hindsight is easy as with your dollar analogy. When we make decisions we are always at the 'right edge of the graph', without knowing for certain what is going to happen tomorrow.

Predictions are that house prices will continue to fall in the short term, but as I said, property should be treated as a long term investment. The actual capital is only a paper loss until cashed in. My point was that if she can manage the cashflow and treat it as a long term investment, it has the potential to be profitable in the long term.

Your analogy is great now, but I'd bet my house on the fact that you weren't predicting 1.46 in July or September.

My post offered several options - including as you mentioned, selling - but you choose to pick up on one word and put a negative slant on it. Again, more wise words with hindsight looking on what has gone before rather than offering positive suggestions.

ad44downey

Gorgeous_George wrote: »

Maybe you need to buy some more BTLs so that the total profit covers the loss on this one?

GG

that's gotta be a wind-up. :rotfl: