BTL (Borrow-To-Let) DOOM

[AtW]

Great idea, but probably not worth me renting a pad under that regime.

Under my tough but fair regime you'll have totally rent free accomodation

[clearedforlanding]

BTL (Borrow-To-Let) should only be allowed in new houses, building of which was fully financed by the wanna be investors and they have to hold that stock for 20 years minimum - can't evict tenants unless they stop paying or cause real damage.

Great idea, but probably not worth me renting a pad under that regime.

[AtW]

BTL (Borrow-To-Let) should only be allowed in new houses, building of which was fully financed by the wanna be investors and they have to hold that stock for 20 years minimum - can't evict tenants unless they stop paying or cause real damage.

[clearedforlanding]

Let me throw a suggestion out: Over a certain threshold number of properties BTL should only be allowed in shared ownership properties.

[SueEllen]

So protect the market for encumbents and place barriers to entry for new entrants?

Fine. This really isn't going to address the issue that people cannot afford first houses.

The government has to look like they are doing something....

[AtW]

So protect the market for encumbents and place barriers to entry for new entrants?

Yes.

[clearedforlanding]

So protect the market for encumbents and place barriers to entry for new entrants?

Fine. This really isn't going to address the issue that people cannot afford first houses.

[AtW]

" Buy-to-let loans are set to get more expensive under global plans to crack down on the sector, amid fears of an unsustainable boom in the market.

Global officials at the Basel Committee, which sets financial standards for the whole world, want banks to hold twice as much capital against mortgages when the repayments are dependent on income from tenants, joining the Bank of England and the Treasury in warning of growing risks in the sector.

That is because such loans will only be repaid when the property is occupied and the landlord may struggle if tenants cannot be found.

It comes after Chancellor George Osborne announced another new tax on landlords, increasing stamp duty on the purchase of second homes and investment properties.

Under Basel Committee rules, banks have to apply a 35pc risk weighting to residential mortgage loans with a loan-to-value ratio of between 60pc and 85pc.

That measure defines how much capital a bank has to hold against the loan to make sure it can deal with a downturn in the economy when more loans migh not be paid back.

But the new plan would mean doubling that weighting to 70pc if the loan is dependent on rental income. This would, in turn, double the capital that would have to be held against the loan. Such a change would drive up the cost of lending and reduce the supply of buy-to-let mortgages for buyers.

This standard model applies to all banks except the very largest, which are allowed to use their own risk weightings if they have enough data to satisfy regulators that they understand the market fully. However, the wider tightening up on buy-to-let does still affect those giant lenders. "

Source: Global regulators join crackdown on buy-to-let - Telegraph

All responsible Govts of the world must eliminate this clear and present danger of funds diverted away from their pension Ponzi schemes