New Buy to Let Boom Fuelled By Higher Rents

JonnyBravo

marblesfound wrote: »

Do you really believe that all Landlords have BTL mortgages? I know many amateurs that have standard owner occupier mortgages - what is going to happen if they are caught? Will they go to prison? Why should they stop?

I class myself as an amateur landlord, having only one rental property. I do everything by the book though.
I use a residential mortgage and don't have consent to let. I don't need it. You see it is on my PPR yet I am still able to offset this mortgage against the rental property for tax purposes.

Do you really imagine vast swathes of landlords all having multiple residential mortgages on multiple properties?
That's just not the situation. Of course there will be a minority doing that to some small extent. Just as, for example, some people who rent a house don't pay their rent and end up trashing the property. Hardly the norm though.

JonnyBravo

marblesfound wrote: »

In addition my example above was an interest only mortgage. Surley for BTL most use interest only.

It doesn't half annoy me when people don't think before they post.

No. You made up the figures for an imaginary property with an imaginary mortgage. Please feel free to detail the property and its location together with the mortgage which show me up to be wrong.

Pimperne1

Percy1983 wrote: »

In short the incentives should be removed form BTL, if you ant th asset a the end you should pay for at least some of it, capped rents would go a long way to sorting this.

"Ok we transferred all sorts between names to use 0% deals which meant an initial loading onto her and then loading back onto me, but the relevance of whose name it was under at each point means very little as there was no scam and none of us did a runner".

I think people who use the 0% deals and are interest rate tarts are as much to blame for the current crisis as BtL landlords.

FTBFun

marblesfound wrote: »

So why then are interest rates the lowest they have ever been?

Hint: The housing market had started to tank!

Or, the economy started to tank and to reduce the cost of credit for businesses, in attempt to slow or halt this slide, interest rates were reduced to the level they are at the moment.

Cleaver

marblesfound wrote: »

So why then are interest rates the lowest they have ever been?

Hint: The housing market had started to tank!

The housing market is one element of the economy, so obviously it has an impact on government decisions by it's not the only factor and certainly not the main factor. Someone like Generali will be better at explaining this than me but governments will lower or raise interest rates when they want to influence how the economy (the wider economy, not just the housing market) operates. By lowering interest rates the government wants to encourage personal spending, wants to increase money circulation and is hoping that people invest in businesses rather than saving money in traditional savings accounts. This, in theory, should mean that money is circulated through businesses rather than being tied up in savings or government bonds and GDP, and therefore the economy, picks up. Something along those lines anyway. You can therefore see that the housing market is a part of this but very much only a part.

I know that if you hate landlords and the rental market then it's easy to imagine somone in government going "hmmm, better lower interest rates really low so that landlords make lots of money", but in reality this doesn't happen.

Pimperne1

I know that if you hate landlords and the rental market then it's easy to imagine somone in government going "hmmm, better lower interest rates really low so that landlords make lots of money", but in reality this doesn't happen.

Isn't it that most MPs also have a BtL portfolio?

chucknorris

JonnyBravo wrote: »

I class myself as an amateur landlord, having only one rental property. I do everything by the book though.
.

I think the terms amateur and professional are banded about a lot and it's very subjectively used.

I suppose you could read 'professional' as both taking a professional approach (which you seem to do) and/or providing enough income to give the landlord financial independence.

JonnyBravo

chucknorris wrote: »

I think the terms amateur and professional are banded about a lot and it's very subjectively used.

I suppose you could read 'professional' as both taking a professional approach (which you seem to do) and/or providing enough income to give the landlord financial independence.

Absolutely.
I couldn't live on my rental income so I think fair to say I'm an amateur who acts in a professional manner for his tenants.
Of course some use "amateur landlord" hoping it will cause some kind of offence. None taken though, I'm happy to be an amateur, with my annoying residential mortgage.

Percy1983

Pimperne1 wrote: »

I think people who use the 0% deals and are interest rate tarts are as much to blame for the current crisis as BtL landlords.

Probably true, with that we paid more than enough in interest individually before we joined forces, interestingly one of the reasons we did it was they started rate jacking us it really didn't feel like there was any other option when one card started asking for 34.9%.

Pimperne1

Percy1983 wrote: »

Probably true, with that we paid more than enough in interest individually before we joined forces, interestingly one of the reasons we did it was they started rate jacking us it really didn't feel like there was any other option when one card started asking for 34.9%.

You don't feel guilty that all those who are paying very high interest on the loans they need to survive are subsidising you and your partner then (isn't that a little hypocritical considering your view on BtL)?