MSE News: Buy-to-let borrowers hit by West Brom mortgage hike

socrates

Waiting for Clydesdale to follow suit - especially now they have sorted out their previous problems of overcharging - watch this space.....

Thrugelmir

socrates wrote: »

Waiting for Clydesdale to follow suit - especially now they have sorted out their previous problems of overcharging - watch this space.....

Owned by National Australia Bank, who also own Yorkshire Bank. Rumoured to be looking to exit the UK banking market.

HAMISH_MCTAVISH

harpoboy wrote: »

Hi brit

Nice to see you've amended your signature.

It makes you look marginally less foolish.

No it doesn't.

AGBAGB

I'm a landlord affected by this.

For anyone else in the same position, the focus for a collective action is on a site called Property118.com.

For anyone with a tracker mortgage buy to let or residential you might want to take note. This could well be the thin end of a very big wedge. You could be next!

For Tenants, this kind of action could/will lead to some Landlords going under, the lenders will be able to evict you. There will be fewer properties available to move to.

You might hold a prejudiced view of Landlords, probably because like so many other issues you only hear about the bad ones. The majority are good, honest and fair who take a big risk to hopefully to cover costs, make a modest "taxable" profit and maybe end up with some equity to retire with. Do not confuse them with callous fat cats.

These lenders have targeted Landlords first because they think public prejudice will dampen support. However if they get away with it, the precedent will have been set and they have more chance of stuffing anyone they choose.

BOE interest rates are low to keep the ecconomy stable while the growth rates are so low. If these artificial rate rises become widespread. The strategy will be undermined. It'll be those at the top of financial institutions who profit. Do you honestly think that regular savers will benefit? Do you have that much faith in them passing on the benefit?

Our passivity, ignorance, self interest and herd mentality are their sharpest tools. They have used them with great effect for years.

By all means have a go at the bad landlords (I do). But please support a group of people who are trying to make a stand.



PS. Note how I have implied "self interest" to try and nurture "herd mentality". But only to nudge the issue away from passivity and ignorance.

leveller2911

AGBAGB wrote: »

I'm a landlord affected by this.

You might hold a prejudiced view of Landlords, probably because like so many
other issues you only hear about the bad ones. The majority are good, honest
and fair who take a big risk to hopefully to cover costs, make a modest
"taxable" profit and maybe end up with some equity to retire with. Do not
confuse them with callous fat cats.

Well you could have invested in ISA's,bonds etc but in truth you chose to go down the BTL route which is higher risk with higher returns.

You will be telling tenants you were in it for the good of society and helping those less fortunate.

If you or any other landlords go pop because of this then you got your sums wrong, what would happen if the interest rates were raised by 3%? quite possibly could happen in the next 2-5yrs.Don't you factor in rate rises?.

One of the positive things that could happen is that BTL landords are put of investing and people who want to buy a home can compete,many have struggled to for the past few years partly due to BTL.

You can vote with your feet..........

Yorkie1

AGBAGB wrote: »

For Tenants, this kind of action could/will lead to some Landlords going under, the lenders will be able to evict you. There will be fewer properties available to move to.

Whilst it may lead to some LLs going under, the mortgage is a BTL so the lender is bound by the tenancy. Therefore cannot evict any sooner than the LL could have done in the first place.

Your second sentence does not automatically follow, either. The lender may choose to sell as a going concern - and in any event who's to say that a new LL won't buy.

I recognise that you want to get people behind your action, but scaremongering doesn't really do you any credit.

AGBAGB

leveller2911 wrote: »

Well you could have invested in ISA's,bonds etc but in truth you chose to go down the BTL route which is higher risk with higher returns.

You will be telling tenants you were in it for the good of society and helping those less fortunate.

If you or any other landlords go pop because of this then you got your sums wrong, what would happen if the interest rates were raised by 3%? quite possibly could happen in the next 2-5yrs.Don't you factor in rate rises?.

One of the positive things that could happen is that BTL landords are put of investing and people who want to buy a home can compete,many have struggled to for the past few years partly due to BTL.

You can vote with your feet..........

Yes ISA etc are perfect repayment vehicle to pay off an interest only loan at the end of its term. Yes BTL is higher risk, with potential for higher return.

No it's not a charity but decent, fair landlords do attract good tenants.

No the sums where right, the extra variable has been added in after the contracts where signed. If BOE interest rates go up by 3%, mine will have gone up by 5% and what's to stop the lender adding more? Remember I bought a Tracker mortgage so my interest should move in line with general economic activity.

BTL Landlords can rarely compete with residential purchasers, check out a few auctions. Has a BTL ever tried gazumping a residential purchaser?

Walking away is one option, I'll stand and fight a bit first.

Thrugelmir

AGBAGB wrote: »

Remember I bought a Tracker mortgage so my interest should move in line with general economic activity.

In the past 4 years have you passed part of the cost saving to your tenants then. As your tenants are being severely squeezed with a fall in disposable income. With rents still rising and reaching all time highs. LL's appear to be doing little more than looking after themselves. Despite the extremely difficult economic climate.

AGBAGB

Yorkie1 wrote: »

Whilst it may lead to some LLs going under, the mortgage is a BTL so the lender is bound by the tenancy. Therefore cannot evict any sooner than the LL could have done in the first place.

Your second sentence does not automatically follow, either. The lender may choose to sell as a going concern - and in any event who's to say that a new LL won't buy.

I recognise that you want to get people behind your action, but scaremongering doesn't really do you any credit.

On the eviction front, it is slightly different but with similar results.

Going concerns possible but they would prefer not to, they have a duty make the most out of a sale which normally means appealing to a broader market.

Scaremongering it might be, its a bit like being paranoid doesn't mean you're not being watched.

AGBAGB

Thrugelmir wrote: »

In the past 4 years have you passed part of the cost saving to your tenants then. As your tenants are being severely squeezed with a fall in disposable income.

Yes, I've not raised rents in over 6 years.