BTL: "... a ticking time bomb."

Alan_M_2

wolfplayer wrote: »

That is exactly what drove the market to totally unaffordable levels.

I'll remind you this is 8% of mortgages, not 8% of housing stock...

It's the result of HPI not the driving force, the driving force is purely the availbility of funds, nothing more nothing less.

wolfplayer

Alan_M wrote: »

You can't seriously suggest that 8% is driving the market?

This is from 2006.

Just a small percentage of the market buying can do it, when paying more for homes every year.

http://www.guardian.co.uk/money/2006/aug/16/business.buyingtolet

The number of home loans for landlords reached record levels in the first six months of the year, figures showed today.

The Council of Mortgage Lenders (CML) reported an increase of 17% in the number of buy-to-let mortgages in the first six months of the year, and a 20% increase in the total value of the loans.


There are now 767,000 residential buy-to-let mortgages outstanding in the UK, with a combined value of £83.9bn.

PasturesNew

A BTL LL can buy a house a week. A homeowner buys one every 3-5-10-20 years.

Some blokes I've seen on Homes Under the Hammer said they were buying one a week or one a month. Quite a few had 100-200 houses.

HutH follow ONE buyer from ONE auction. How many of the others in the room were also buying one a week.

A lot of them already had 10-20 houses, but had just started buying at auction, so it's not just auction buyers that are at it.

Thrugelmir

In answer to questions asked. At the end of 2008 there were 1,156,000 BTL mortgages outstanding with a loan value of £138 billion pounds.

http://www.cml.org.uk/cml/media/press/2116

While BTL is partly to blame for the rise in house prices. There is also the wider issue of people deserting savings traditional routes such as pension plans to invest in property. Yes, they only one house. Lived in it, perhaps extended and improved it. Then moved on. But with larger and larger mortgages inflated the bubble further.

StevieJ

Alan_M wrote: »

I'll remind you this is 8% of mortgages, not 8% of housing stock...

It's the result of HPI not the driving force, the driving force is purely the availbility of funds, nothing more nothing less.

Don't give in The driving force for HPI was low interest rates, simple as.

dopester

StevieJ wrote: »

Don't give in The driving force for HPI was low interest rates, simple as.

Interest rates are very low now Stevie.

Do banks and other lenders have the same availability of funds compared to the boom years?

StevieJ

dopester wrote: »

Interest rates are very low now Stevie.

Do banks and other lenders have the same availability of funds compared to the boom years?

I should have said affordability driven by low interest rates.
This is not the not the case now for FTB'ers ( no low rates) who also require large deposits therefore restricting affordability.

Alan_M_2

Thrugelmir wrote: »

In answer to questions asked. At the end of 2008 there were 1,156,000 BTL mortgages outstanding with a loan value of £138 billion pounds.



While BTL is partly to blame for the rise in house prices. There is also the wider issue of people deserting savings traditional routes such as pension plans to invest in property. Yes, they only one house. Lived in it, perhaps extended and improved it. Then moved on. But with larger and larger mortgages inflated the bubble further.

That's probably closer to the mark.

I'd hazard a guess (based on nothing more than a hunch) that Mortgage Equity Withdrawal equalled or exceeded the total value of BTL mortgages. I wonder if there is any way of producing a stat on that but I doubt it?

Availability of funds drives everything including prices, and that's it.

Blindly blaming BTL'ers as the evil wrongdoers and cause for everything is just so far off the mark.

kennyboy66_2

ad9898 wrote: »

I disagree, I think he was a very lucky speculator, just because someone is lucky, doesn't necessarily mean they are professional......... not by a long chalk.

Perhaps sums up the petty envy on here.

Certain people have always preferred investing in property - who do you think owned a fair proportion of the terraced property in cities between 1920 and 1990's ?
Plenty was owned by small landlords, who generally also had another small business and ploughed profits into property as it was more tangible than the stock
These people typically paid off their mortgages or bought for cash (like in Alan's example). My grandparents bought their first house from their landlord just after the war (for £60, knocked him down from £100 as their was some minor bomb related damage!)

Owns 15 buildings, no motgage, done it for 15-20 years.

What a fly by night charlatan.

RomansProperties

PasturesNew wrote: »

Anybody know what the current SVR is likely to be on average on a BTL mortgage?

.

I have 5 deales ending between June and Sept.
These are going onto LIBOR plus 1.5% to 2%.
I am planning to stick on these deals until I see the LIBOR start increasing.
It will still mean rates of between 3% and 3.5%