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Banks expect increase in repossessions
Comments
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I can see a rise in IRs hitting recent BTL investors pretty hard. Most are on IO variable rates so a rise would be a big dent in the profits. Apart from parts of the SE it may be very difficult to increase rents due to an oversupply of flats. This could be a sector where repos start hitting.0
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and when even massively restrictive lending doesn't force prices down significantly,
Oh poo, when that happening? I best buy before that happens.Have my first business premises (+4th business) 01/11/2017
Quit day job to run 3 businesses 08/02/2017
Started third business 25/06/2016
Son born 13/09/2015
Started a second business 03/08/2013
Officially the owner of my own business since 13/01/20120 -
I can see a rise in IRs hitting recent BTL investors pretty hard. Most are on IO variable rates so a rise would be a big dent in the profits. Apart from parts of the SE it may be very difficult to increase rents due to an oversupply of flats. This could be a sector where repos start hitting.
Or not, as the case may be.
The evidence is that cash purchases are becoming increasingly prevalent, and a new BTL investor won't be getting low rates (and will need a high deposit). And interest rates aren't going to be moving anywhere much anyway very soon. VAT increases drop out of the system at about the time an increase now would have an effect, any increase would be largely symbolic, and very few sane people would risk a weak recovery to make a symbolic point.
As a cash investment with a degree of hedging against inflation and a good chance of a capital gain over a 7ish year period, BTL is a reasonable bet. I know that many overseas investors are looking hard at UK property for a number of reasons.
To get massive levels of repossessions you need massive long term unemployment, and the chances of that are receding.0 -
So an extra 4000 or so repossessions relative to last year and 3700 odd less than 2009. Recall that at the peak level of repossessions in 2009, prices were rising.
So a lower absolute level than that now is REALLY going to have an effect isn't it?:rotfl:
But keep the faith, eh?
yes, a nothing story. presumably stephen fry hadn't written anything on twitter for a while and the journalist was getting a bit desperate for "news".0 -
http://www.telegraph.co.uk/finance/personalfinance/8478172/Banks-expect-increase-in-repossessions.html
Have they decided its time to call in their markers?
Ouch. And thats with emergency bail out base rates.
Out of interest what were the reposession levels in the recession previous to this one in the early 90's? the one one where the Tories were in power.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Calm down dear, its only a housing bubble0
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intelligent posts by the usual suspects i see...0
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intelligent posts by the usual suspects i see...
condescending posts by the usual suspects i see...
Have my first business premises (+4th business) 01/11/2017
Quit day job to run 3 businesses 08/02/2017
Started third business 25/06/2016
Son born 13/09/2015
Started a second business 03/08/2013
Officially the owner of my own business since 13/01/20120 -
Briefly. Then immediately dismissed the notion as b0110cks.
https://forums.moneysavingexpert.com/discussion/3181100=
I must convince myself i did the right thing,rinse and repeat.Official MR B fan club,dont go............................0 -
busted.... is it us or just himself he's trying to convince...https://forums.moneysavingexpert.com/discussion/3181100=
I must convince myself i did the right thing,rinse and repeat.0
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