Sell! Sell! Sell!

[ChimpMaster]

I've only been hearing that for the last two years...and each time its been wrong. What makes it right this time?

Yeah I think the guys have explained this well enough. The credit environment is getting sapped. No one wants to buy/hold debt and hence the banks can't create new debt. This means they will not offer as many mortgages as previously - and certainly not to high risk groups. This discrimination will lead to fewer groups being able to buy property.

Residential and commercial will be affected.

If my wife would let me, I'd sell all our properties and keep just a small one to live in for a few years ... then buy bigger ones cheaper later.

[DimPrawn]

Sell the property and then buy a new wife.

Try Russian Brides . ru

[sasguru]

If my wife would let me, I'd sell all our properties and keep just a small one to live in for a few years ... then buy bigger ones cheaper later.

So you're going to let female illogicality stand in the way of getting rich?

[ChimpMaster]

Yeah maybe I'll go short on the wife and long on East European bloc babes....

[shaunbhoy]

This means they will not offer as many mortgages as previously - and certainly not to high risk groups. This discrimination will lead to fewer groups being able to buy property.

Residential and commercial will be affected.

So this must surely be great news for the BTL community as a larger chunk of the populace will be forced into rented as opposed to being able to buy. Those already owning will just sit tight.
Haven't really thought this through have you?

[ferret]

So this must surely be great news for the BTL community as a larger chunk of the populace will be forced into rented as opposed to being able to buy. Those already owning will just sit tight.
Haven't really thought this through have you?

But those who got into BTL late will be hit hard if prices do drop and many will look to get out leading to a glut of properties on the market and with less people able to secure mortgages and more people holding off buying while prices drop there could be a cumulative effect that maybe you have not thought of?

Also the BTLers that bought years ago may see that we have reached a peak and offload while the prices are high again leading to more properties on the market...

[sasguru]

So this must surely be great news for the BTL community as a larger chunk of the populace will be forced into rented as opposed to being able to buy. Those already owning will just sit tight.
Haven't really thought this through have you?

You are a real imbecilic half-wit aren't you? What do you think will happen to re-possessions and so on? They will be just re-cycled onto the market as rentals, so supply will increase.

[ChimpMaster]

So this must surely be great news for the BTL community as a larger chunk of the populace will be forced into rented as opposed to being able to buy. Those already owning will just sit tight.
Haven't really thought this through have you?

LOL. Ah the simple people.

Edit: Actually I apologise, perhaps you've taken a huge mortgage out recently?

[shaunbhoy]

What do you think will happen to re-possessions and so on? They will be just re-cycled onto the market as rentals, so supply will increase.

Repossessions are not occurring at any significant rate. This rate is hardly likely to increase as interest rates are hardly likely to go much higher as inflation is steadying and the government dare not try to influence them much higher for fear of stalling the economy. This will mean that those who are unable to get mortgages will be forced into renting thus stabilising the BTL market. Those who chose the BTL option as opposed to topping up pension pots that GB has raided will be safe enough sitting tight. There will be no glut so no weakening of house prices. It is not that difficult if you can think laterally and logically and sniff the wind. There are factors that could affect the housing market quite seriously, like the building of significant numbers of new housing, but they are unlikely to happen at a rate that would precipitate a crash. For that reason I am not that worried. For now those that should worry are those that have missed the boat, few others, provided they hold their nerve.
Now SG if there are any big words or concepts in there that elude you, I am sure there are some grown-ups about that can explain.

[King Cnvt]

Something you need to know.

Mortgage interest rates will rise, even if the BOE base rate does not.

The cost of borrowing will have to cover lenders losses in sub-prime.

What we will see, is lenders slowly push up mortgage rates to well above base rate. They need to cover their losses.

The era of mortgages at or even below base rate are long gone.

Base rate will be 6% and mortgages will be at least 8%.

You have been warned.