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Could this be the ruin of BTL ?
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or the 1000s who have 'invested' in overpriced new builds at any point in the past 2-3 years.
capital appreciation cannot be assumed automatically, even without any major price crash/correction.It's a health benefit ...0 -
As long as you keep servicing the loan they aint gonna come for their money simple as.
Banks don't have any choice... it's part of the contract they will have agreed when they sold the debt on that they'll maintain the LTV rate. Either they get the money from the BTLer or they pay it out of their own profits.
As soon as they ask the BTLer for the money the market will collapse, which is why banks in the US have been doing big write-downs of assets out of their own money... props the market up a little longer.Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0 -
What makes me laugh is this talk of BTL mortgages being 85% LTV when in reality the 15% "deposit" that people put down on such a property is MEWed from another property.
So, in effect, they have a 100% mortgage. Maybe not just on that BTL property itself, but with other loans (because that is what MEW is) the result is the same.dolce vita's stock reply templates
#1. The people that run these "sell your house and rent back" companies are generally lying thieves and are best avoided
#2. This time next year house prices in general will be lower than they are now
#3. Cheap houses are a good thing not a bad thing0 -
Guy_Montag wrote: »Fine for you, but what about the c. 300k btlers who "invested" last year?
They are stuffed (avoided censorship by careful choice of word).
Their tenants will be homeless.
Their houses will remain empty for months, maybe years, while buyers are found. Empty houses do nothing to help ease the housing shortage.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Gorgeous_George wrote: »They are stuffed (avoided censorship by careful choice of word).
Their tenants will be homeless.
Their houses will remain empty for months, maybe years, while buyers are found. Empty houses do nothing to help ease the housing shortage.
Lots of empty houses. Lots of people needing homes. Can I suggest something???
:A
JUST MOVE IN.Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0 -
Can anyone point to evidence of mortgage lenders calling in perfectly serviced loans during the last price correction in the late 80s, regardless of whether they were homewners or BTL owners.
I only knew of repossessions as a result of people falling way behind on mortgage payments, and I mean several months, not just the odd month. Those who fell into NE (we knew loads) had no issues provided they kept meeting their mortgage payments.
At that time there really was a price crash that would have made the recent 40% reduction in some new build values seem trivial.
Why, because banks saw little point in making people suffer just because they may be in negative equity. Those who may have had the odd problem during a month or two were often given a bit of slack because the banks looked to the longer term - wait for the economy to recover again, the homeowners will earn more and correct their arrears, then the loan will be good again.Behind every great man is a good womanBeside this ordinary man is a great woman£2 savings jar - now at £3.42:rotfl:0 -
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Can anyone point to evidence of mortgage lenders calling in perfectly serviced loans during the last price correction in the late 80s, regardless of whether they were homewners or BTL owners.
err, no.
That may be because the last crash was a minor supermarket car park ding in comparison to what might be around the corner.
Or the fact that there were very few people will lots of 'BTL' mortgages back then.
Or maybe lenders will just learn from last time.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
The BTL mortgage as we currently understand it was introduced in the mid 90s
the last crash affected almost exclusively owner occupied residential mortgages, which are not subject to the same 'margin call' clauses.It's a health benefit ...0 -
I invented the word "cormoranted" for such occasions. (Cormorants being very similar to shags)Gorgeous_George wrote: »They are stuffed (avoided censorship by careful choice of word).
But they were homeowners not investors with commercial small print in their mortgage arrangements.....Those who fell into NE (we knew loads) had no issues provided they kept meeting their mortgage payments.....A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0
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