Buy to Let Mortgage?

[Deleted User]

Now is an extreemly bad time to buy, interest rates are rocketting and house prices will drop.

You will lose money

thesaint

Yant1 wrote: »

Now is an extreemly bad time to buy, interest rates are rocketting and house prices will drop.

You will lose money

How much are interest rates rocketing to?

How much will house prices drop?

How much money will Col.Mustard lose?

dunstonh

We cant say if he will lose or not but considering a 90% LTV on a buy to let would need you to have a strong business plan and good capital reserve when you look at where we are with the housing bubble an increased interest rates on the way.

90% will almost certainly see the rent not covering the mortgage so there will be a loss there. Property prices are above long term average which historically has never been a good time to buy (last time it was like this it took up to 12 years to recover after the price crash). If you can price all that in to your business plan along with empty periods, cost of refurbishment and increasing interest rates etc and still come out with a profit, then there is no reason not to consider it.

If you are just jumping on the bandwagon without any research then you are asking for trouble.

Col.Mastard

Yant1 wrote: »

Now is an extreemly bad time to buy, interest rates are rocketting and house prices will drop.

You will lose money

Will I!!! :eek:

I better change my mind then! :rolleyes:

[Deleted User]

thesaint wrote: »

How much are interest rates rocketing to?

How much will house prices drop?

How much money will Col.Mustard lose?

Interest rates will rocket to between 6.5-16%

House prices will drop 10-60%

He will lose all of his deposit alot of fees and possibly his own house or part thereof.

Mr_helpful

Yant1 wrote: »

Interest rates will rocket to between 6.5-16%

House prices will drop 10-60%

He will lose all of his deposit alot of fees and possibly his own house or part thereof.

Did you enter a coma in the 80S and just wake up?
If interest rates rise and they will it makes it more difficult for the 1st time buyer who will then be forced to rent which puts demand in to the rental sector and rents will rise. Im putting mine up now

dunstonh

Did you enter a coma in the 80S and just wake up?

No, that happens in the next series of Life on Mars (Ashes to Ashes as going to be called). You arent Gene Hunt by any chance are you?

[Deleted User]

On your own head be it gentleman, you have been warned but you know better so go and do it today.

These so called financial advisors make me laugh. Touting for business to make commision out of the poor unsuspecting souls.

toonfish

Yant1 wrote: »

On your own head be it gentleman, you have been warned but you know better so go and do it today.

These so called financial advisors make me laugh. Touting for business to make commision out of the poor unsuspecting souls.

You're right - much better to take advice from an economic guru.

[Deleted User]

Mr_helpful wrote: »

If interest rates rise and they will it makes it more difficult for the 1st time buyer who will then be forced to rent which puts demand in to the rental sector and rents will rise.

Thats very spurious logic.

Any advisor encouraging clients to take out 90% LTV BTLs or for FTB'ers 4times+ mortgages without all but the safest of jobs and a reasonably long fixed rate period (at least 5 if not 10 years) is be irresponsible in my book given the current uncertain climate.

http://news.bbc.co.uk/1/hi/business/6549299.stm