BTL Investors hit Bonanza

the_flying_pig

wotsthat wrote: »

Stating the obvious. The CML data shows mortgage data. Who's more likely to show up in this data - a FTB or 'cash rich' BTL?

It seems entirely plausible that as mortgages have become more difficult to access the proportion of transactions attributable to BTL has increased. According to Merv it's more of the same this year as well.

"cash rich" is one thing but to not show up in that data you'd obviously have to be talking about 100% cash purchases. I'm not saying that it doesn't exist but AFAIK cash BTL is small enough to be barely worth talking about.

Road_Hog

I always love these threads about house prices/BTL etc. All these people who want house prices to drop, let me ask you a question. Let's say that the average house price dropped to £150K and a starter home was £100K.

So, you bought your starter home for £100K and in the following 2 years it dropped 20%, leaving you 20K in negative equity. Would you still be happy with house price deflation? I think not.

BTW, the elites don't want you to own your own home, because that way you earn a little capital and can become 'slightly' rich, and have a stake in the country. Yep, the UN (a tool of the elites) wants to ban ownership of property by the general public. Google Agenda 21 and property. Google Agenda 21 and your local council name to see that they are implementing Agenda 21, seriously, do it.

You can start here, but seriously, Google Agenda 21 and your local council name, to see that it is not made up.

http://www.conservativenewsandviews.com/2011/07/27/constitution/un-agenda-21-abolish-private-property/

chewmylegoff

Road_Hog wrote: »

I always love these threads about house prices/BTL etc. All these people who want house prices to drop, let me ask you a question. Let's say that the average house price dropped to £150K and a starter home was £100K.

So, you bought your starter home for £100K and in the following 2 years it dropped 20%, leaving you 20K in negative equity. Would you still be happy with house price deflation? I think not.

BTW, the elites don't want you to own your own home, because that way you earn a little capital and can become 'slightly' rich, and have a stake in the country. Yep, the UN (a tool of the elites) wants to ban ownership of property by the general public. Google Agenda 21 and property. Google Agenda 21 and your local council name to see that they are implementing Agenda 21, seriously, do it.

You can start here, but seriously, Google Agenda 21 and your local council name, to see that it is not made up.

http://www.conservativenewsandviews.com/2011/07/27/constitution/un-agenda-21-abolish-private-property/

I googled it and the only references I could find to an agenda to abolish private property were in right wing nut job blogs (like the one you posted) who seemed to think that govt policies to encourage the use of bicycles and public transport over cars represented an agenda to abolish private property.

In any case even if the elites do want to stop people from owning private property they haven't got very far with their agenda in the 20 years. Not up to much, these elites...

Percy1983

But most BTL empires where built on the basis of borrowing against the empire increasing in price with access to easy mortgages, so in many respects many BTL landlords will be as stuck as many FTB's are.

I still can't the problem, I asked for a 90% mortgage and got a 90% with no issues, I will add that only one application was made to the best deal too, no brokers where involved.

geneer

Rinoa wrote: »

http://www.ft.com/cms/s/0/0ddacf3a-387a-11e1-9f07-00144feabdc0.html#axzz1iiW9plgD

Not sure this is what the bears had in mind.

How many BTLs do you own then Columbo?

:rotfl::rotfl::rotfl:

Conrad

As I've been saying for 3 years, tighter FSA rules may mean slightly lower repo rates, but millions are punnished by being foced to rent.

Each time I said this the bears told me I was just a mortgage VI, but as ever I must point out I charge higher fees now that mortgages are harder to arrange, so I am not some embittered VI wanting a return to the good ole days.

Well done regulators, as ever getting it all wrong.

Rinoa

geneer wrote: »

How many BTLs do you own then Columbo?

:rotfl::rotfl::rotfl:

Why did you decide the bulls were correct and totally capitulate in 2009?

Conrad

the_flying_pig wrote: »

As ever, a purely academic approach to matters leaves one blinded to reality.

The reality is that huge numbers of let properties are officially resi mortgages, often where people have moved on and let thier previous home.

Also I've know many people purchase a house 'intending' to reside, but then having changed thier minds and let it out.

Thrugelmir

Percy1983 wrote: »

But most BTL empires where built on the basis of borrowing against the empire increasing in price with access to easy mortgages, so in many respects many BTL landlords will be as stuck as many FTB's are.

The nationalised BTL mortgage portfolio of Bradford & Bingley (now part of NRAM) still has to be unwound. Appears to be very little equity held by LL's if the figures reported in the accounts are accurate.

Conrad

Percy1983 wrote: »

But most BTL empires where built on the basis of borrowing against the empire increasing in price with access to easy mortgages, so in many respects many BTL landlords will be as stuck as many FTB's are.

Most that I see are enjoying signifiant monthly rental profit as thier mortgage variable rate is so incredibly low. Bare in mind many are still resi mortgages on ultra low tracking rates such as base MINUS 0.2 fore example. Some clients are paying about 0.1%.

So often people say things to me like, the B2L pays thier car and holiday costs.