Buy to Let landlords face extra Margin Call payments

IveSeenTheLight

chucky wrote: »

yes i think you're right

You guys should read the dont feed the trolls thread

http://forums.moneysavingexpert.com/showthread.html?t=1446237

brit1234

Sorry I forgot you wanted to live in ignorance. How dare we debate the wider property issues on a property issue forum. Some might say the reverse that it is the likes of Chucky trolling.

IveSeenTheLight

brit1234 wrote: »

Sorry I forgot you wanted to live in ignorance. How dare we debate the wider property issues on a property issue forum. Some might say the reverse that it is the likes of Chucky trolling.

Who's living in ignorance?
I enjoy reading very good points put across with relevance and ideally backed up with links to follow up with.

Maybe chucky is viewed as an inverse troll to others, I'm not going to comment.

I do not see the point in this post

Brit1234 wrote:

How much has your property portfolio devalued today chucky? :rotfl:

Mind you, I fell into a similar trap when I also without any real point said

You guys should read the dont feed the trolls thread

http://forums.moneysavingexpert.com/...html?t=1446237

I apologise for this non point post

Cleaver

ad44downey wrote: »

We should tax the Buy to Let vultures out of existence once and for all.

I would now ask where people who want to rent would live. But I'm starting to worry that I'm in some Bill Murray-esq groundhog day situation, so I'm not going to bother.

Having said that.

Where would the people who want to rent live?

silvercar

Cleaver wrote: »

I would now ask where people who want to rent would live. But I'm starting to worry that I'm in some Bill Murray-esq groundhog day situation, so I'm not going to bother.

Having said that.

Where would the people who want to rent live?

GB waves his magic wand and social housing is available for everyone that wants to rent. Gives jobs to the house building industry as well, so its a double whammy.

Only problem is paying for it all; don't worry GB will just print the moeny.

Cleaver

Brit my good man, I've just realised who you are. You remember the years between about 2002 and now when you chatted to people at work, parties, or the pub and were bored to death about property?

"Mine is gaining value by £100 a day, which is amazing really."

"I bought two to rent out, didn't even look around one, but you can't go wrong can you?"

"One has just sold in our street for £375,000, which is astounding really as we only paid £70,000 ten years ago".

It was dull, boring and really irritating. But then I've just realised that you are the flip side of the same coin. Cheering on a crash, your smiley signature rubbing its' hand with glee at 50% falls, spending free time searching out BTL articles to post, working out how much you 'make' each month. Just the same really, isn't it?

Gorgeous_George

I know BTL LLs with fixed rates at 6%+. When these fixes end they may be forced to accept the lender's 'end-of-fix' rate if their LTVs fail to qualify them for new deals.

Not quite 'margin calls' but pretty painful nonetheless. Even more so if other, less exposed LLs hold or even reduce their rents.

GG

Thrugelmir

IveSeenTheLight wrote: »

There are far more OO mortgages than BTL.
What you've stated would generate more income for the banks but would not answer any margin call issue and would not generate as much as raising interest rates on OO mortgages.

I would guess that when rates rise, they will be on all types of mortgages

I was just giving an example. As fixed rate and tracker mortgages generate a fixed interest income. A banks loan book is large enough that that they can alleviate the risk of negative equity by charging all variable rate mortgage holders more.

By generating more income the banks can then make a provision against the risk of losses caused by negative equity. This is what Northern Rock effectively have done by maintaining a high SVR. As fixed rate mortgages expire, customers with equiy can remortgage, the remainder are all paying over the odds reflecting the higher risk of loss to the bank.

JonnyBravo

The thread on Lloyds asking people who have an IO only mortgage about plans to repay the capital reminded me of this non-event.

Jonbvn

JonnyBravo wrote: »

The thread on Lloyds asking people who have an IO only mortgage about plans to repay the capital reminded me of this non-event.

You waited more than 18 months to post this???????:cool: