BTL Boom continues

Graham_Devon

The buy-to-let mini-boom is continuing with landlords' mortgages borrowing up 32 per cent in a year and almost half of the cash going towards snapping up new properties, according to new figures

New buy-to-let lending in the first three months of the year totalled £3.7billion, with 32,300 mortgages taken out by property investors, latest figures from the Council of Mortgage Lenders have shown.

According to the Council of Mortgage Lenders (CML), this means the amount lent out lending is 32 per cent higher than in the same period of 2011.

Landlords are cashing in at a time of homebuyers struggling to get on the property ladder. An increasing number of would-be buyers - especially those looking to buy for the first time - are still renting, as lending criteria remains strict and deposits high.

The BTL sector now makes up 12.8% of all mortgages.

Question is....can this really continue?

http://www.thisismoney.co.uk/money/mortgageshome/article-2142291/Buy-let-mini-boom-continues-mortgage-lending-investors-32-year.html

ess0two

Last paragraph says it all.....

HAMISH_MCTAVISH

ess0two wrote: »

Last paragraph says it all.....

It sure does....

An increasing number of would-be buyers - especially those looking to buy for the first time - are still renting, as lending criteria remains strict and deposits high.

So they can afford to pay the rent, which pays the mortgage, which enriches the landlord.

But they can't get a mortgage for themselves....

robmatic

HAMISH_MCTAVISH wrote: »

It sure does....

So they can afford to pay the rent, which pays the mortgage, which enriches the landlord.

But they can't get a mortgage for themselves....

You should read the thread(s) on the HPC forum about BTL scum with their unfair tax advantages not allowing poor innocent FTBers into the market. The dogma and economic illiteracy is strong over there.

chucky

Graham_Devon wrote: »

The BTL sector now makes up 12.8% of all mortgages.

That's very interesting.

That's about 1.47 million properties. Total 11.5 million mortgages in UK.

About 14% of property is private rented so that's about 3.5 million properties. Total property in UK is 24.5 million.

That means about 58% of BTL property is unmortgaged and not affected by mortgage rates, margin calls and affected even less by any arrears and can't be repossessed.

wotsthat

Graham_Devon wrote: »

The BTL sector now makes up 12.8% of all mortgages.

Question is....can this really continue?

It can and will.

It was mentioned the other day that the average property is now £40k or so off peak. This has been great for BTL - increased rental demand, less competition for suitable property and lower prices.

BTL's tend to have much lower LTV's so we're seeing property being concentrated into the hands of the rich and paid for by the poorer.

The bears dream didn't quite translate to reality did it?

Brit, Macaque, Foxy et al will all be delighted with falling prices. They're sat on deposits and don't actually give a s**t despite the fake hand wringing we get subjected to.

chucky

chucky wrote: »

That's very interesting.

That's about 1.47 million properties. Total 11.5 million mortgages in UK.

About 14% of property is private rented so that's about 3.5 million properties. Total property in UK is 24.5 million.

That means about 58% of BTL property is unmortgaged and not affected by mortgage rates, margin calls and affected even less by any arrears and can't be repossessed.

Also, there are 26,300 BTL mortgages in arrears which means that 1.79% of landlords are in arrears, very low and good to see contrary to what many claim on here...

Emy1501

HAMISH_MCTAVISH wrote: »

It sure does....



So they can afford to pay the rent, which pays the mortgage, which enriches the landlord.

But they can't get a mortgage for themselves....

Risks to the landlord of people not being able to pay rent is a lot less than to a lender of those who may default on the mortgage.

Not everyone can own a home the countries with the highest home ownership in Europe are the countries in quite a lot of trouble.

Graham_Devon

chucky wrote: »

Also, there are 26,300 BTL mortgages in arrears which means that 1.79% of landlords are in arrears, very low and good to see contrary to what many claim on here...

Has anyone claimed any different?

Or just another soundbite to back up your argument?

chucky

Graham_Devon wrote: »

Has anyone claimed any different?

Or just another soundbite to back up your argument?

Sound bite, no sorry I leave that to those who can't help themselves, always putting your foot in it before checking the facts.

Here's a search on the forum for Landlord arrears
http://forums.moneysavingexpert.com/search.php?searchid=126103237
And another one here for BTL arrears
http://forums.moneysavingexpert.com/search.php?searchid=126103547
There are lots of examples for you find sme of the usual suspects there...

Do about want to try again with any more of your valueless posts?

chucky

wotsthat wrote: »

It can and will.

It was mentioned the other day that the average property is now £40k or so off peak. This has been great for BTL - increased rental demand, less competition for suitable property and lower prices.

BTL's tend to have much lower LTV's so we're seeing property being concentrated into the hands of the rich and paid for by the poorer.

The bears dream didn't quite translate to reality did it?

Brit, Macaque, Foxy et al will all be delighted with falling prices. They're sat on deposits and don't actually give a s**t despite the fake hand wringing we get subjected to.

And there's me telling people that falling house prices will only mean less people being able to buy a house but being told by the usual suspects that it won't be the case.

Btw Devon, I can back that one up too...