Moneyweek: Why the buy-to-let carnage is just beginning.

RenovationMan

IveSeenTheLight wrote: »

On the contrary, according to CML, it's still expanding.

Funny that we keep getting these doom and gloom stories yet the world keeps on turning. Next we'll have some idiot going on about an asteroid hitting the eath. Bonkers. You couldn't make it up.

DervProf

RenovationMan wrote: »

Fuuny that we keep getting these doom and gloom stories yet the world keeps on turning.

How about this for a "doom and gloom" story.........

An Asteroid Will Hit Earth In 48 Hours.

I'm sure if that became reality, the world would continue turning. So that would be alright then ?

brit1234

IveSeenTheLight wrote: »

On the contrary, according to CML, it's still expanding.

Yes it may be expanding but it does not mean it is healthy. If anything it just shows more people being sucked in to an economic mistake.

The Global property guide rate the UK and Londons buy to let sector with poor yields and with a low long term investment rating.

http://www.globalpropertyguide.com/investment-rating

Any fool can jump into a sinking ship, the more fools who do it doesn't make it more righteous.

geneer

IveSeenTheLight wrote: »

On the contrary, according to CML, it's still expanding.

Though expanding at a tiny proportion of the rate it did up to 2007,
and most of those turn out to be remortgages. :rotfl:

Its very simple of course. The BTL muppetry of the bubble years is dead and gone.
Yet you guys hang desperately onto the "victory" that the words "BTL" and "Mortgage" can still be found together.

Funny thing is, I can't remember anyone claiming there would be no more landlords post 2008.

Anyway, some of the "facts" you are so happy to discuss.

The Council of Mortgage Lenders (CML) started collecting statistics on buy-to-let in 1997 and some observers have interpreted the growth in buy-to-let lending, as reported by the CML, as evidence of a boom. However the CML only measures the growth of the new specialist lenders in the market - such as Paragon Mortgages, Mortgage Express and BM Solutions, whilst omitting the core back book of loans to residential property investors by mainstream lenders.

The apparent growth in buy-to-let lending is attributable to the success of specialist lenders in taking market share by offering bespoke products and services and attractive pricing. In fact, as much as 40% of activity is remortgaging as established landlords switch from more expensive commercial mortgages.

The market peaked in 2008, before collapsing not long after. The market dropped dramatically, moving from $27.2 billion worth of lending in 2008, to just £8.5 billion in 2009 as lenders removed available products by the week, and with new products having a maximum loan to value of 70%. To add even more to the problem of gaining finance, valuers were becoming extremely cautious, with mortgage valuations often significantly less than the purchase price agreed. By the end of this period, the market had halved in value. The dramatic rises that the market saw in the first decade of the 21st century were wiped out within a matter of weeks. .