The Four Horseman of the BTL Apocalypse.

Snooze

http://forums.moneysavingexpert.com/showthread.html?t=1855965

Thrugelmir

chucky wrote: »

from reading that. the assumption can be made incorrectly that BTL = struggling and needs to sell.
granted that BTL reposessions are higher but saying that a minimum of 110,000 properties (not including property bought in 2007) are at risk of future reposession is exagerated.

Its early days yet. You can't fix a debt problem that exists overnight.

HBOS's mortgage book apparently has arrears of 6 months and over of 11% of the total currently. The banks are following the Governments softly softly approach. At a point something has to give.

Anybody that bought at the peak in 2007 (and through till late 2008) as an investment is highly exposed. Far more than 1 home owners who can whether the storm.

SilverStandard

These 4 horsemen havent yet shown their fury.

They are just getting ready for next May, when interest rates shoot up and forclosures go to the moon.

StevieJ

SilverStandard wrote: »

These 4 horsemen havent yet shown their fury.

They are just getting ready for next May, when interest rates shoot up and forclosures go to the moon.

Interesting, I hope this will be in the Tory manifesto

chucky

Thrugelmir wrote: »

Its early days yet. You can't fix a debt problem that exists overnight.

HBOS's mortgage book apparently has arrears of 6 months and over of 11% of the total currently. The banks are following the Governments softly softly approach. At a point something has to give.

Anybody that bought at the peak in 2007 (and through till late 2008) as an investment is highly exposed. Far more than 1 home owners who can whether the storm.

the large majority of people in the UK will not even be affected by the recession, just like not eveyone was affected by the last recession.

there are going to be over-leveraged people out there - nothing like the extent that people would like or expect on this forum...

chucknorris

Thrugelmir wrote: »

Anybody that bought at the peak in 2007 (and through till late 2008) as an investment is highly exposed. Far more than 1 home owners who can whether the storm.

This isn't always the case my wife and I bought an investment property between us in just about the worst time i.e. summer 2007. The (90%) mortgage is currently £146 month (lifetime tracker) and the rent £1,180. So although not delighted with the capital fall we are weathering the storm fine.

RDB

chucknorris wrote: »

This isn't always the case my wife and I bought an investment property between us in just about the worst time i.e. summer 2007. The (90%) mortgage is currently £146 month (lifetime tracker) and the rent £1,180. So although not delighted with the capital fall we are weathering the storm fine.

Thats because you are in the eye of the storm with low IRs. Its passing over you as we speak, you know its coming. Everyone knows higher interest rates are coming.

IRs going up are only 1 of the 4 horsemen. Your equity is going down, your rent you will get is going to go down and finding good tenants who can and will pay all the rent is getting harder.

Sorry if it sounds like Im being hard on you but so many are the same, they can just about make a profit on the yeild at the moment so dont worry about being in negative equity.

Do they not see that we are in the eye of the storm?

pete80

Pobby wrote: »

Talking to a friend in the USA, who is a mortgage broker, she said that in her opinion, most of her clients lied in order to get the mortgage they required. Not saying it happened here, but from what I understand, very little was done to check the validity of mortgage applications.

I spent 4 months late last year in the USA looking at buying a property, travelling through many states. Due to the banking crisis unfolding I decided against buying on that trip but speaking to many Real Estate Agents I was given the impression that mortgage brokers were filling their boots by helping? renters to buy houses with the discount mortgages (ARM etc) for a much lower mointhly payment than their rent.

Also like here, so many people became amateur Landlords because they fell for the endless TV advertisements and programmes showing house prices were rising by 30% or more a year in a few States. During my trip all that had changed to Foreclosure Ads, books etc.

chucknorris

RDB wrote: »

Sorry if it sounds like Im being hard on you but so many are the same, they can just about make a profit on the yeild at the moment so dont worry about being in negative equity.

Just about make profit? I have owned investment property since 1991, this period is massively the most profitable period by a huge degree!

I don't worry (although obviously I would prefer it otherwise) about the negative equity because I mainly invested in the early 90's, this 2007 investment was just a one off. Prices have to fall a total of over 70% for me to be in negative equity as my earlier bought properties have very low gearing.

Additionally I recently have decided not to re-invest in property so my plans to buy 3 more houses are now (permanently) shelved and I will just keep the cash in savings accounts. I came to this decision mainly because I am 51 now and probably want to get out of the market aged 60-65 and although I am pleased with my current investments I don't think it's wise to invest more with possibly only a 10 period in mind. I think it's time to accept what I have now and start enjoying myself more and forget about additional investments.

ad9898_3

chucky wrote: »

the large majority of people in the UK will not even be affected by the recession, just like not eveyone was affected by the last recession.

there are going to be over-leveraged people out there - nothing like the extent that people would like or expect on this forum...

Disagree chucky, the 'mask' of low rates is covering a multitude of sins at this time.