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Bishop Bashes Boomers
Comments
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grizzly1911 wrote: »ISTL reveals that ~13% of mortgages are BTL but only ~8% of arrears are BTL.
If a BTL er has done the homework correctly then closer to zero should be in arrears. They are businesses letting out properties and should have allowed for some void periods and or maintenance/refurbishment slots in their cash and liquidity flows. Accommodation is in demand. Rents are increasing apparently.
I am not suggesting there is any relationship between a residential mortgage and a business letting residential property other than the fact the underlying security will be a residential property.
IMO BTLs shouldn't be classified as residential they are business debts and shouldn't be afforded fine mortgage rates.
ISTL made the point that arrears in BTL are lower than normal mortgages.
Of BLT mortgages what would be expect to be in arrears?0 -
Of BLT mortgages what would be expect to be in arrears?
Why should they be in arrears apart from poor management or very extreme cases?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »
For those that allow HB clients they have a guaranteed rent.
.
Is that the case I thought in the case of private landlords LHA(HB) is paid to tenant.0 -
grizzly1911 wrote: »Why should they be in arrears apart from poor management or very extreme cases?
I suppose one could say that for all businesses?0 -
I suppose one could say that for all businesses?
The reason I believe BTLs should be disassociated from traditional mortgages and privileged interest rates."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »The reason I believe BTLs should be disassociated from traditional mortgages and privileged interest rates.
bizarre
You believe BTL is a never lose business;
so surely banks will want to lend to such a business?0 -
bizarre
You believe BTL is a never lose business;
so surely banks will want to lend to such a business?
Don't know where you get your reasoning from. I haven't made any such comment.
Another poster was saying what a low risk option it was compared to normal mortgages.
Why should a well run BTL business lose any money or be in default? It should be fully secured and have excess demand, willing to pay a good rent for good properties. In that context 8.3% in arrears doesn't look particularly good IMO.
No issue with banks lending to good ones I just don't think they should be advanced through residential mortgage linked products and fine interest rates.
The issue isn't the well run ones though."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »Don't know where you get your reasoning from. I haven't made any such comment.
Another poster was saying what a low risk option it was compared to normal mortgages.
Why should a well run BTL business lose any money or be in default? It should be fully secured and have excess demand, willing to pay a good rent for good properties. In that context 8.3% in arrears doesn't look particularly good IMO.
No issue with banks lending to good ones I just don't think they should be advanced through residential mortgage linked products and fine interest rates.
The issue isn't the well run ones though.
even more bizarre
8.3% in arrears .... worthy of a politician
just quote the number of BTL mortgages that are in arrears as a percentage of BTL mortagages0 -
even more bizarre
8.3% in arrears .... worthy of a politician
just quote the number of BTL mortgages that are in arrears as a percentage of BTL mortagages
If you decide to read posts out of context in relation to the original reply that is up to you.IveSeenTheLight wrote: »So BTL is 13.4% of the mortgage market yet represents only 8.3% in arrears and only 0.12% is repossessed.grizzly1911 wrote: »
I suppose 8.3% of the arrears in that context may be considered relatively high.grizzly1911 wrote: »
ISTL made the point that arrears in BTL are lower than normal mortgages.grizzly1911 wrote:
In that context 8.3% in arrears doesn't look particularly good IMO.
I am merely using figures quoted by another poster who knows their stuff."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
grizzly1911 wrote: »ISTL reveals that ~13% of mortgages are BTL but only ~8% of arrears are BTL.
If a BTL er has done the homework correctly then closer to zero should be in arrears. They are businesses letting out properties and should have allowed for some void periods and or maintenance/refurbishment slots in their cash and liquidity flows. Accommodation is in demand. Rents are increasing apparently.
I am not suggesting there is any relationship between a residential mortgage and a business letting residential property other than the fact the underlying security will be a residential property.
IMO BTLs shouldn't be classified as residential they are business debts and shouldn't be afforded fine mortgage rates.
ISTL made the point that arrears in BTL are lower than normal mortgages.
Do you know what % of BTL mortgages are in arrears.0
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