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Basel 3 - affect on BTL
Casa1862
Posts: 44 Forumite
I read the new rules for the Basel committee will be coming in shortly, is it really likely that BTL SRV rates will rise to 8% or above? If that's true then not sure why my broker was trying to get me into a two year fix and failed to mention it, surely brokers should make potential landlords aware, rather important isn't it?
I'm hoping it's just over reacting but with all the recent changes to BTL anything is possible. I fixed for 5 years and then the rate reverts to boe plus 5%, thought this was excessive and had intended to move, I'll just repay the capital over 5years and hopefully affect won't be as bad.
I'm hoping it's just over reacting but with all the recent changes to BTL anything is possible. I fixed for 5 years and then the rate reverts to boe plus 5%, thought this was excessive and had intended to move, I'll just repay the capital over 5years and hopefully affect won't be as bad.
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Comments
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Where did you read that it would have an effect upon BTL rates specifically ?0
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If you think your broker is worrying himself/herself about Basel 3 I suspect you are over estimating him/her.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I don't know too much about it but found this article, like I mentioned, hopefully just an overreaction.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/12043703/Global-regulators-join-crackdown-on-buy-to-let.html0 -
I can pretty much guarantee you that Tim Wallace of The Telegraph will not be compensating you for any loss incurred as a result of decisions made due to reading his articles.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Basle III ultimately will have the impact of reducing the leverage that banks can apply to their balance sheets. By the very nature of this. Lenders will have to increase lending margins to compensate. In order to generate the same level of income on a smaller mortgage book.
Another reason why the BOE appears relaxed. As they'll be a natural tightening of monetary policy.0
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