Btl - R.i.p

[Turion]

The era of the amateur landlord has all but ended, with banks effectively refusing to lend to new entrants to the buy-to-let market.

Thousands of existing landlords also face huge increases in the cost of remortgaging, experts said yesterday.

http://business.timesonline.co.uk/to...cle3818913.ece

[Sockpuppet]

Doomed !!!

[bogeyman]

Back on your old hobby horse again I see, Turion

[BlasterBates]

Great doom posting Turion. The BTL market looks very bad indeed.

[chris79]

Gotta take the rough with the smooth.

[BrilloPad]

mortgage to let is almost finished - non-mortgage btl different.

[Turion]

mortgage to let is almost finished - non-mortgage btl different.

Non mortgage BTL has always existed, but had been very small. The availability of 90% leverage via loans made it affordable to the masses. Effectively they did not have to raise any money as most could use release equity in their own homes. Those that could not do this could rely on so called developer discounts and friendly mortgage brokers to 'sort' the downpayment on new builds. With low interest rates, easy mortgages, rising values and good rents, who could lose? - Now all property investors will feel pain as values drop and those who built their empires on borrowed money will be wiped out.

[BrilloPad]

Non mortgage BTL has always existed, but had been very small. The availability of 90% leverage via loans made it affordable to the masses. Effectively they did not have to raise any money as most could use release equity in their own homes. Those that could not do this could rely on so called developer discounts and friendly mortgage brokers to 'sort' the downpayment on new builds. With low interest rates, easy mortgages, rising values and good rents, who could lose? - Now all property investors will feel pain as values drop and those who built their empires on borrowed money will be wiped out.

and the btl sector is still relatively small. prices have risen alot last few years - all you say applies to those recent market entrants - I still think those who have been in for a while might be okay.

[max]

aI still think those who have been in for a while might be okay.

Agreed....those that have build up equity will be fine, they won't make a good return on investment, but they won't be hit by cash calls on mortgage renewal.

[KentPhilip]

Its allright for me. I never much liked bacon, lettuce, and tomato in my sandwiches in any case.