More Buy to Let Mortgages

subjecttocontract

see:

http://www.thisismoney.co.uk/mortgages/buy-to-let/article.html?in_article_id=431112&in_page_id=56&ct=5

Confused_landord

mmmm Thats encouraging,,,its a good read

Dylanwing

'Encouraging' is hardly the word I would use! The sooner the BTL cowboys exit the market the better!

SquatNow

That's 1 MILLION houses that are going to be reposessed in the next 12 months then!

Pretty much any economist who can fog a mirror is stating that BTLers who bought in the last 12 months are gonna lose their shirts.

Confused_landord

needing a substantial deposit in the first place prevents that from happeneing and thats when a million people sadly may lose there shirts

subjecttocontract

A lot of the BTL virgins who entered the market in the last 2 or 3 years are likely to have problems. It never ceases to amaze me that even now there are people who have never let before looking to climb on board. Many do no homework, don't know anything about the business, employ one of the many rubbish letting agents, let the property to poor quality tenants and then spend a lot of time, effort and money getting themselves out of a big mess.

Of course there are plenty of professional landlords who have been around a while who know what they are doing and who will survive virtually any downturn.

Confused_landord

subjecttocontract wrote: »

A lot of the BTL virgins who entered the market in the last 2 or 3 years are likely to have problems. It never ceases to amaze me that even now there are people who have never let before looking to climb on board. Many do no homework, don't know anything about the business, employ one of the many rubbish letting agents, let the property to poor quality tenants and then spend a lot of time, effort and money getting themselves out of a big mess.

Of course there are plenty of professional landlords who have been around a while who know what they are doing and who will survive virtually any downturn.

Couldnt of said it better myself.........well put,,,,,,i have been doin lettin for 9yrs now,, i buy when i have a good genourous deposits,,so when the !!!! hits the fan,,i can ride the storm..........

SquatNow

subjecttocontract wrote: »

Of course there are plenty of professional landlords who have been around a while who know what they are doing and who will survive virtually any downturn.

True, but proffesional BTL landlords won't have bought anything for the last 4 or 5 years, and may well have sold a few properties at the start of 2007.

Meanwhile the BTL Fraggles have been busy withdrawing equity from existing properties to expand their portfolio.

If you want to tell the Pros from the Fraggles, generally the Pros will buy using mostly, if not all cash, where-as the Fraggles will buy mostly if not entirely with borrowed money.

Eyesparky

SquatNow wrote: »

That's 1 MILLION houses that are going to be reposessed in the next 12 months then!

Don't be ridiculous. The article did not refer to 1M new BTL mortgages it referred to the total number of outstanding BTL mortgages increasing to 1,038,000 from 846,900 a year earlier.

SquatNow

OK, so it's ***only*** 191,100 properties that are going to get reposessed.

Confused_landord

Hi Squat now...but what would your opinion be on the BTL that have got very large equities from there properties and do pull out money from them , to expand there port-folios???? in the long run its all about managing money,wisely