Originally posted by Bagpuss
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Hands up who came up with this comedy character?
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Nooooo! Not been trolled again
my ferret is your ferret -
all I would say is actually be in the BTL game and you will see whats going on, if you arent in it you will only have half the story. I can get a 100% rental to mortgage payment product tomorrow, gonna pay thru the nose but of course u would. Its true that some banks withdrew some products but only to revamp them and relaunch. Now the BOE has injected cash back into the market Libor's have started to calm down and products are available...PS 85% LTV is the norm so dont get your point ferret?
sorry you are wrong about BTL mortgage products do some research, one of my lenders mortgage express has just revamped their BTL product to 110% rental to mortgage payment down from 125% for people who have been BTL for 12 months or more. so you are just wrong....
arrangements fees are on average 2% for a good deal. I just got Birmingham midshires 3yr racker LTV 85% 5.7%Comment
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bagpuss in what respect?? do you want all of my managing agents details to verify my story, send me an email and I will reply....Comment
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Your post sounds like an advert, one question, how do you cover the mortgage on an 85% LTV property in the current market?Originally posted by neilawuk View PostThe court heard Darren Upton had written a letter to Judge Sally Cahill QC saying he wasn’t “a typical inmate of prison”.
But the judge said: “That simply demonstrates your arrogance continues. You are typical. Inmates of prison are people who are dishonest. You are a thoroughly dishonestly man motivated by your own selfish greed.”Comment
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Bagpuss let me use my latest purhase to illustrate.......
I have bought a 2 bed flat in SW16 for £185k, it was on the market for £215k...mortgage on 85% LTV is £157.5k. that is circa £750 per month on my tracker product and rental is £1000 valuation per month as per valuation from birmingham midshires. I need to spend about £10k to get it inhabitable....
thats how...Comment
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another example....my purchase in EC1. 3 bed flat purchase price £505k, big discount as no chain buyer. 10% down and mortgaged £450k so 90% LTV, mortgage £2086 per month rental £750 per week....
anymore??Comment
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OK that is true. With a 30% correction you can sell everything at the price you paid for it (because when you started 4 years ago prices were around 30% less than they are today). You can then retire? not from the money from BTL then surely, given the above. Well I presume you must have other capital to allow you to retire.Originally posted by neilawuk View Post
Now what happens if prices drop by 50%, which is quite likely. Then you have lost an additional 20% on 8 * £150K (say) = £240K. So this will take a big chunk out of your retirement fund.
rather you than me.Comment
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philip get in the real world.....
Im sitting on a very large equity and I can tell you that remove 30% I can still retire.
You have no idea what my break down is, my equity, or even total portfolio value....If say I am sitting on £2m equity then take 30% away yes I can still retire thanks.....
not that I am of course but u get my point, I could have £20m....so dont speculateComment
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I cant actually think u think a 50% drop is likely.....
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What about voids? Factoring them in at 10% reduces your effective rental to £900/month.Originally posted by neilawuk View Post
You (will) have 15% + £10K capital tied up in that property. Effective loss of interest = £50/month - brings it down to £850/month.
So you are making £100/month net.
What about insurance costs against the tenants trashing the place?
What about the cost of your time running the whole thing.
What about banks hiking up rates further.Comment
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