Buy to Let Mortgages

Kaleo

DH and I are trying to find a Buy To Let mortgage for about 90%. DH is a Vicar and so we live in the Vicarage but will need a house to live in when we retire in 25 years time. We've saved about 10% of a deposit (not easy on a stipend!) and are keen to buy something while the market is at rock bottom. However, we're struggling to find anything with only a 10% deposit.

Any suggestions please?

herbiesjp

No options available I'm afraid

Minimum 25% deposit needed for BTL

Kaleo

Thank you. I thought that might be the case. So, I guess we invest the money until it rises but have to suffer the rising house prices too? Gah! Lets hope things change nearer retirement I guess.
Thanks for your help.

hoggums

I for one think you will be better off waiting as I think houses will fall in price over the coming years. It's low interest rates that are helping keep prices up at the moment. All this Quantative easing is going to put huge inflationary pressures on the country, if people are paying more for their essentials such as food/petrol then there won't be as much left for mortgage repayments which will have gone up anyway due to higher interest rates.

Kaleo

Thank you. I really don't think we have a choice. We'd love to have somewhere as our own house and for the security of knowing that we'll have somewhere to live when we retire but it's just not an option at the moment. It's encouraging that you don't think we're missing the boat!

hearts

hoggums wrote: »

I for one think you will be better off waiting as I think houses will fall in price over the coming years. It's low interest rates that are helping keep prices up at the moment. All this Quantative easing is going to put huge inflationary pressures on the country, if people are paying more for their essentials such as food/petrol then there won't be as much left for mortgage repayments which will have gone up anyway due to higher interest rates.

I totally disagree with this. In my opinion house prices have bottomed. Low interest rates? Where are these? New mortgages are %wise similar or higher now than they were in 05/06. Unless of course you are putting up over 25%.

Cannon_Fodder

I disagree with the some of the disagreement...its not just new mortgages that affect house prices.

For the recent level of supply there have been sufficient high deposit or outright cash buyers. After all, there are 18 months worth of "non-buyers", who held off to see how far prices would drop, often in rental, waiting in the wings. Hence recent price rises.

When those high deposit/cash buyers drop in number/proportion, leaving mostly those unable to significantly increase their deposits, then the lack of demand from FTBs will be felt again - due to those high rates for low LTVs. Perhaps hand-in-hand with an increase in supply generated by sellers feeling more confident about the price they can achieve after recent price rises. Resulting in price drops, over the winter.

Meanwhile, existing mortgagees on tracker/discount mortgages are being saved from financial pressures, often under 2% and sometimes virtually zero, while existing Fixed deals coming to an end, many only able to go onto SVR due to negative equity, again often under 3% so not a short-term problem, but a timebomb for some if negative equity is not recovered by the time fixing becomes essential.

Many of these will get a shock from rate rises, maybe not before the election, but not impossible beforehand. Among those on the edge, financially, there will be casualties.

By then we get into election territory, so current Govt measures may cease due to changing political colours, and see a growth of repossessions as other temporary measures run out anyway and the full effect of 3m+ unemployed hits home...

...and that's before getting into the uncertainty of QE, inflation - will we be a new Japan situation etc etc...

Plenty of uncertainty around, imo. Worth keeping an eye on the issue. Plug away at your deposit. In another year, BTL deposit might be at 20%, or 15%, too.

Trollfever

and the full effect of 3m+ unemployed hits home...

And I think that this will be a key factor.

Kaleo

Thank you. I think we'll have to sit tight, there's no other option. It's one of the frustrations of working for the Church of England. They provide a wonderful house for you to live in while you're working but on a really low 'wage' (stipend) which, of course, means it's very difficult to save anything. (Don't get me started on trying to heat and light a clergy house on a stipend too!)
Thanks for your help.