"Thousands" with BOE trackers face mortgage interest rate rise

ess0two

Graham_Devon wrote: »

Apart from theres no woe is me in that which you quoted. Just literally facts.

Please Harry, give it a rest. You are on the mortgages forum calling me scum for revelling in peoples misery (which I'm not doing). here you are trying anything to gain something (not sure what) to make you feel like you have won something. I don't get it, but please calm it down a bit.

To be fair,your coming across as a bit of an ar8e on that thread,considering you've been in similar position.

Thrugelmir

dryhat wrote: »

All most of these BTL clowns with IO mortgages are effectively doing is renting and then sub-letting a property.

Say you rented a house for £500 pm and sub-let it for £600 and the landlord said the rent was going up to £550. If you couldn't afford that you would have to "move out".
Meanwhile the sub-tennant who has been paying £600 all along could afford it - so gets to stay on at a reduced rate.

Ideally, this is the way it should happen in free market economy.

Unfortunately, that's just what we haven't got. All we have instead is speculation in housing using cheap money that nobody has any intention of repaying and the resultant misery that inevitably follows.

Good summarisation. Maybe the first death bells are ringing for amateur BTL.

(I say amateur as the professionals will pick up the pieces).

Graham_Devon

Thrugelmir wrote: »

Good summarisation. Maybe the first death bells are ringing for amateur BTL.

(I say amateur as the professionals will pick up the pieces).

It was a case of when really, not if. Theres been many a thread on here talking about the problems of extending and pretending. If this sort of rate finishes off amatuer BTL's, were they really fit to be in the business in the first place?

chucknorris

dryhat wrote: »

All most of these BTL clowns with IO mortgages are effectively doing is renting and then sub-letting a property.

I wouldn't want a repayment loan, I don't want to pay the capital off (not yet anyway) because the interest is tax deductable, and especially now when the loans are at a lower rate than my savings are earning.

Thrugelmir

chucknorris wrote: »

I wouldn't want a repayment loan, I don't want top pay the capital off (not yet anyway) because the interest is tax deductable, and especially now when the loans are at a lower rate than my savings are earning.

The issue for the amateurs that any gain was only ever going to be capital. While paying tax isn't what people wish to do. After tax profit = Cash. Which can then be reinvested back into the business. Thereby increasing profit.

I'm afraid that its not only the Labour party bought the concept that increasing debt creates profit. A whole swathe of the country appears to have done likewise.

chucknorris

Thrugelmir wrote: »

The issue for the amateurs that any gain was only ever going to be capital. While paying tax isn't what people wish to do. After tax profit = Cash. Which can then be reinvested back into the business. Thereby increasing profit.

I'm afraid that its not only the Labour party bought the concept that increasing debt creates profit. A whole swathe of the country appears to have done likewise.

I find it hard to respond because I don't think you understand the business, you are ignoring the rental profit which is the most important, i.e. the foundations upon which you are building up the business.

Of course capital growth is also important but for me (in the main) that is my retirement fund when I eventually sell up.

PaulF81

do we really think a single (tiny) struggling bank is going to fundamentally change the mortgage market? most people will remortgage if they have any sense.

chucky

PaulF81 wrote: »

do we really think a single (tiny) struggling bank is going to fundamentally change the mortgage market? most people will remortgage if they have any sense.

In the real world no... but on this forum anything gets the frothers excited. It's like christmas come early for Devon, Shortchanged and Thruglmeir watching other people suffer financially.

Thrugelmir

chucknorris wrote: »

I find it hard to respond because I don't think you understand the business, you are ignoring the rental profit which is the most important, i.e. the foundations upon which you are building up the business.

Then you are over estimating the business sense of many amateur BTL'ers. Who are merely taking a speculative punt.

I've been in finance far too long. The issues ahead are so so predictable.

chucknorris

Thrugelmir wrote: »

Then you are over estimating the business sense of many amateur BTL'ers. Who are merely taking a speculative punt.

I've been in finance far too long. The issues ahead are so so predictable.

I have deleted my initial response because it might have been a bit harsh, but I think you are the 'real deal' bear who I could never really understand fully. Don't get me wrong in boom times I am quite bearish myself, but I change when recession comes and the buying season looms.