Lenders want out of BTL - what does that tell you?

Thrugelmir

RomansProperties wrote: »

I agree with you kenny about the demand we currently have 86 flats 100% full and people still contacting us from old adverts.
Its mainly bottom end properties like studio & 1 bedroom flats but there is plenty of demand.
Are you hopefull of new deals coming?
More people seem to be pulling out of the market at the moment?
From May to Sept we have 4 properties coming onto LIBOR+ deals and these are quite a bit better than our current fixed ones

With so many properties aren't you concerned about the capital value of your portfolio in the medium term?

More recent investors in the BTL market (in the majority it seems) only have interest only mortgages. The rent covering the interest. The plan being a profit would be made from capital appreciation on the property, on the basis that property prices would rise and rise.

Just interested. So tell me if I'm being too nosey

RomansProperties

No Totally fine
Mostly our property is terraced houses which have been divided up into flats.
The properties are valued based on their returns.
18 months ago houses were valued like this at a 10% return but as the market has changed so much they are valued at more like 12%.
We have properties ranging from returns at 7%-26%.
They will have gone down in value and also if I wanted to sell the people who would have previously purchased this type of property may have left the market.
I dont want to sell anything as its my income but it would be better for me and everyone else if the market was a bit more certain.
Demand is good, properties are cheap and chearfull and as long as there is more calls for places than we have thats fine by me.

mickholloway

Rick62 wrote: »

If you do nothing what rate does your mortgage go to after the fixed rate ends?

3.25% a little lower but I was happy to get the fixed rate for 2 years prefer to know what paying each month