Buy to Let Mortgage?

dunstonh

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

There are only two financial advisers that have contributed to this thread. One transacts mortgage business, the other doesnt. There is no touting going on and I take offence to the suggestion there is.

We cannot give financial advice on the forums as it is against board rules and would also be an FSA breach. So, usually you will find the responses as a little vague or give options rather than outright say its good or bad.

Would I personally do a mortgaged buy to let at this time? Not a chance. I think the risks are too high for the potential return. However, a professional landlord may still be able to pick up opportunities and some areas still have potential whilst others dont.

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.

It isnt the place of a mortgage adviser to give their opinion as to whether the individual is making the right decision or not. Financial advisers can give their opinion but at the end of the day, the decision lies with the individual and if that person asks for a mortgage from a mortgage adviser and they fit lending criteria then the mortgage adviser is correct in transacting it.

[Deleted User]

I am presuming something will go on in terms of pm's, if I am wrong on this front and its purely opinions and no touting goes on then I appologise for the above.

I have read these forums for a bit and theres lots of advice on how to get large quantitys of credit from alot of financial advisors and mortgage advisors in here. There is also an incredible optimism from teh same people saying dont worry houses have gone up 10% every year which is obviously more tehn mortgage interest rates. There is little mention of whats happening ecomomically and people should be warned that interest rates have been increasing at a very fast rate at the moment. There are a lot of costs involved with BTL that people will underestimate as well as there may be costly issues arise such as a boiler might go or get bad tenants, agency cuts, taxes, acountants etc. A lot of banks dont care if they overlend to people as they have ways and means to make their money no matter what happends.

I have the option to get a BTL at the moment but am not as like you I think its a bad idea. Unless you absolutly know what you are doing, and i dont think there are many people you can say that about.

dunstonh

I am presuming something will go on in terms of pm's, if I am wrong on this front and its purely opinions and no touting goes on then I appologise for the above.

It certainly doesnt happen with the long standing posting advisers.

I have read these forums for a bit and theres lots of advice on how to get large quantitys of credit from alot of financial advisors and mortgage advisors in here.

I havent evidenced that but I am an IFA and not a mortgage adviser so dont follow the individual mortgage threads much. However, if it does happen, then you do have to realise that mortgage advisers have to ensure affordability when giving advice. Posts on these forums are not advice.

There is also an incredible optimism from teh same people saying dont worry houses have gone up 10% every year which is obviously more tehn mortgage interest rates.

I agree with you 100%. I have used the reference that they are modern day endowments. By that I mean that everyone got used to endowments paying out big surplus profits and the risk got forgotten. That was until there was a crash. We are just waiting for that property crash to occur and threads in this forum will be dominated by "I lost money on my property, who can I claim from"

There is little mention of whats happening ecomomically and people should be warned that interest rates have been increasing at a very fast rate at the moment. There are a lot of costs involved with BTL that people will underestimate as well as there may be costly issues arise such as a boiler might go or get bad tenants, agency cuts, taxes, acountants etc. A lot of banks dont care if they overlend to people as they have ways and means to make their money no matter what happends.

There is a lot of mentions over time but what happens is you tend to get repeat threads and it can be a little boring to repeat warnings and debate issues on a new thread when the same posters did that just a week earlier. So, the risks etc tend to appear in some threads but not others.

Mr_helpful

Buy to let works if you just do a couple of things right. firstly buy at the bottom end of the market as rents proportionately are higher and theres more demand.
Secondly make sure that rental covers mortgage by as much as possible then it doesnt really matter if house prices fall in the long term as mortgage is paid anyway. you only need to cover void periods which if you get a good reputation and are good to the tenants doesnt happen very often.
house prices over the last century averaged doubling every 10 yrs but did fall in the short term . The only people negative equity affects is those who sell, so the simple thing is dont sell

JoeK_3

Yant1 wrote: »

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

I beg your pardon!!

We are not all so called Financial Advisers in this forum.

Some off us are Financial Advisers!!

Why can you not hold a decent debate about the future economic cycle of the UK property market, without stooping to accusations about touting for business.

Have you ever thought that some of us so called Financial Advisers are giving up our time to help people out of the kindness of our hearts..

Please note: For your information there is a difference between a Financial Adviser and a Mortgage Adviser..

JoeK

Mr_helpful

JoeK wrote: »

IPlease note: For your information there is a difference between a Financial Adviser and a Mortgage Adviser..

JoeK

Yes mortgage advisers specialise in just mortgages whereas IFA's can be jacks of all trades
Sorry Joe only joking. I used to be an IFA until I realised 98% of my work was mortgages and the PI insurance was so much cheaper

JoeK_3

Mr_helpful wrote: »

Yes mortgage advisers specialise in just mortgages whereas IFA's can be jacks of all trades
Sorry Joe only joking. I used to be an IFA until I realised 98% of my work was mortgages and the PI insurance was so much cheaper

I needed to point out to this individual the difference between the two and it was no way meant to be a derogatory statement about mortgage advisers.

No bashing my colleagues from me.

JoeK

kenshaz

Mr_helpful wrote: »

Yes mortgage advisers specialise in just mortgages whereas IFA's can be jacks of all trades
Sorry Joe only joking. I used to be an IFA until I realised 98% of my work was mortgages and the PI insurance was so much cheaper

Do not give up your day-time job ,leave the jokes to the professionals.

The_Eternal_Optimist_2

Make love not war , why all the sniping?

Mr_helpful

kenshaz wrote: »

Do not give up your day-time job ,leave the jokes to the professionals.

I dont think anyone cares billy no mates.