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Penalty fees (£ks) for Buy to Let as prices fall
brit1234
Posts: 5,385 Forumite
In many Buy to Let mortgages its is written that if house prices fall Landlords will have to pay thousands extra to banks to cover the loss. These so called margin calls are aimed to protect the bank as investors equity is wiped out.
We have had a fall of 2.5% last month across the country with massive falls in the Midlands and Manchester over the last year. It is in these areas first where the investors will have to pay these penalty charges.
Here is the Telegraph article on the subject:
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/14/cnmortgage114.xml
:eek:
We have had a fall of 2.5% last month across the country with massive falls in the Midlands and Manchester over the last year. It is in these areas first where the investors will have to pay these penalty charges.
Here is the Telegraph article on the subject:
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/04/14/cnmortgage114.xml
:eek: :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
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This is being discussed on the sub board. Read the article carefully (because it wasn't written carefully). Like they say, "never let the truth get in the way of a good story".
Quote:
The revaluation is done when the borrower remortgages....
Now, I don't know any lender who doesn't do some sort of revaluation when a borrower remortgages. Perhaps the writer of that article could point some out to me.A house isn't a home without a cat.
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