Is BTL about to bust?

[Lucy]

Hi pussycat

[Hart-floot]

Cheapest BTL mortgage now is 5.5%, leading to a SVR of 7.5%. Looks like the sh1te is about to hit the fan.

Similarly those with a normal mortage who overstrestched themselves a couple of years ago, are looking at up to 40% increase in mortgage costs

Yep - smart money starting to bail out of btl - government crack down on btl tax subsidies imminent - credit crunch on the way courtesy of Bear Stearns - happy FTB's in a year or two

http://www.moneyweek.com/file/31286/...mortgages.html

[King Cnvt]

BTL will boom. Driven by housing shortages and millions of immigrants and a growing birth rate and raise in longevity etc.

Boomed!

[Bagpuss]

BTL will boom. Driven by housing shortages and millions of immigrants and a growing birth rate and raise in longevity etc.

Boomed!

How is 125% rent to repayment acheivable when even 6% loans at 80% LTV are thin on the ground?

[sasguru]

Most BTL landlords will have a low LTV ratio. And I know many who are buying now but very carefully e.g. ex-council in wholly owned blocks in trendy areas in London, who can still do fine on yields.

[alreadypacked]

Most BTL landlords will have a low LTV ratio. And I know many who are buying now but very carefully e.g. ex-council in wholly owned blocks in trendy areas in London, who can still do fine on yields.

BTL in Dublin crazy, cheapest place in city is about €2000.00 a month interest only. The average rent is about €1000.00 a month. Pay a grand a month for someone to live in my apartment. . . I don't think so. . . and the market might collapse any time due to over supply. A ticket for the lotto please.

[Bagpuss]

Most BTL landlords will have a low LTV ratio. And I know many who are buying now but very carefully e.g. ex-council in wholly owned blocks in trendy areas in London, who can still do fine on yields.

Isn't the whole point of BTL about gearing, i.e. as little as possible deposit?

[BlasterBates]

BTL in Dublin crazy, cheapest place in city is about €2000.00 a month interest only. The average rent is about €1000.00 a month. Pay a grand a month for someone to live in my apartment. . . I don't think so. . . and the market might collapse any time due to over supply. A ticket for the lotto please.

Ah but that's in Ireland, so its OK.

[King Cnvt]

How is 125% rent to repayment acheivable when even 6% loans at 80% LTV are thin on the ground?

Rents will rise fast driven by the huge demand for housing from immigration. Millions are arriving every year and need housing, but no housing is being built.

Ditto, boomed forever!!!

[alreadypacked]

Ah but that's in Ireland, so its OK.

That was just a heads-up, if they let you out.
Care in the community and all that.