BTL landlords flourish as FTB's struggle

Graham_Devon

Landlords are continuing to flourish as banks become more reluctant to lend to first-time buyers.

The number of loans taken out by landlords increased by a third in the first three months of 2012, compared with the same period last year. Buy-to-let loans account for a record one in eight of all outstanding mortgages.

Landlords are cashing in on providing rental accommodation to youngsters and families unable to get on the housing ladder due to banks’ tough lending checks.

I find this quite distasteful for the UK really. I know, it's all business, but something needs to be done. It's going to end in tears, and the taxpayer once again is going to be the one picking up the pieces, either though housing benefit, or propping up the banks.

I've given up hope of any regulation being imposed in any way at all. But it is somewhat saddening that it ended up this way. The country will never be able to dig itself out of a hole if more and more people are being swallowed up into a rental trap.

http://www.thisismoney.co.uk/money/mortgageshome/article-2148629/Best-buy-let-mortgages-4-help-landlords-flourish.html

CLAPTON

presumably the actual story is that banks are willing to lend to people with 25% deposits but are reluctant to lend to people with only 5 or 10%

Joe_Bloggs

@Graham_Devon
Can you edit you post so that the origin of the quotation is clear.
J_B.

IveSeenTheLight

Graham_Devon wrote: »

I find this quite distasteful for the UK really. I know, it's all business, but something needs to be done. It's going to end in tears, and the taxpayer once again is going to be the one picking up the pieces, either though housing benefit, or propping up the banks.

I've given up hope of any regulation being imposed in any way at all. But it is somewhat saddening that it ended up this way. The country will never be able to dig itself out of a hole if more and more people are being swallowed up into a rental trap.

It's nothing enlighting really.
Many of us have been foreseeing increased rental properties and reduction in owner occupancy levels.
The argument against BTL expansion hasn't really come to fruition.

As many have said before, the only real way to give opportinuties to more of the population is to increase the credit availability, otherwise it will need significant will power and determintation for the average FTB to build up the required deposits.

System

This is what stricter, prudent lending gets you. They have big deposits and good credit history.

Graham_Devon

Joe_Bloggs wrote: »

@Graham_Devon
Can you edit you post so that the origin of the quotation is clear.
J_B.

Done. Thought I'd included a link as I always do!

The_J

Joeskeppi wrote: »

This is what stricter, prudent lending gets you. They have big deposits and good credit history.

CLAPTON wrote: »

presumably the actual story is that banks are willing to lend to people with 25% deposits but are reluctant to lend to people with only 5 or 10%

Exactly.

It is much harder to get a BTL mortgage than a residential mortgage. This shows that there are quite a lot of wealthy people out there who are investing in property because it's a good bet.

These people are successful for a reason, they make the right call most of the time.

ess0two

Joeskeppi wrote: »

This is what stricter, prudent lending gets you. They have big deposits and good credit history.

Is'nt this what the MSE mass called for?remember those replies also,'be careful what you wish for'

chucky

Graham_Devon wrote: »

I find this quite distasteful for the UK really. I know, it's all business, but something needs to be done. It's going to end in tears, and the taxpayer once again is going to be the one picking up the pieces, either though housing benefit, or propping up the banks.

I've given up hope of any regulation being imposed in any way at all. But it is somewhat saddening that it ended up this way. The country will never be able to dig itself out of a hole if more and more people are being swallowed up into a rental trap.

http://www.thisismoney.co.uk/money/mortgageshome/article-2148629/Best-buy-let-mortgages-4-help-landlords-flourish.html

That's what you get for wanting to stricter lending controls.

People didn't believe it at the time but there will always be investors to invest in property.

"Investing in property is always a gamble, the house always wins."
Chucky
September 2008

HAMISH_MCTAVISH

chucky wrote: »

That's what you get for wanting stricter lending controls.

It was always going to end up like this, that's what happens when you raise deposits and restrict lending so that only the wealthy can buy.

And it's not like we didn't warn them often enough...

HAMISH_MCTAVISH

Graham_Devon wrote: »

BTL landlords flourish as FTB's struggle

The inevitable result of mortgage rationing.

"Be careful what you wish for".... Does that ring any bells Graham?