It is different this time Posted January 15, 2009 Posted January 15, 2009 bye bye BTL deals! 93 per cent of BTL deals have disappearedStory by: Sharon Flaherty Magazine: FTAdviser Published Thursday , January 15, 2009 The buy-to-let sector has been one of the biggest casualties of the credit crisis, with 93 per cent of all deals disappearing in the last 18 months. Landlords already in the buy-to-let (BTL) market or looking to enter the sector, will struggle to do so without a 20 per cent deposit after the Post Office became the last lender to withdraw its 85 per cent LTV deals. According to Moneyfacts, deals of between 10 per cent and 15 per cent, which used to make up 61.1 per cent of the market, are no longer available. The number of deals for a 20 per cent deposit has also plummeted and Moneyfacts is suggesting that landlords really need at least a 30 per cent deposit to get the best deals. Even then they are paying a hefty price. Falling house prices have also caused the equity in many landlords’ portfolios to reduce and with no deals available for less than a 20 per cent deposit, many may have no option but to move onto the lender’s standard variable rate (SVR) at the end of their existing deal. Michelle Slade, analyst at Moneyfacts.co.uk, said: "For some this may be no great hardship, but some lenders have not passed on cuts to their BTL SVRs as they have to their residential version. "Despite a 4 per cent drop in bank base rate since last year, landlords have seen little impact with the average fixed rate dropping just 0.03 per cent. "BTL lenders have also tightened criteria, restricting the size of portfolios that landlords can have, both in number of properties and maximum total advance. "The Mortgage Works has become the first lender to introduce a collar to its pay rate calculation, meaning borrowers will have to earn bigger rental incomes; not an easy feat in these difficult times." Ohh dear poor buggers now need 20-30% deposit to speculate on property, my heart bleeds for them Quote
Financial Hack Posted January 15, 2009 Posted January 15, 2009 Old news, posted this yesterday. Quote
spivT Posted January 15, 2009 Posted January 15, 2009 only 93% ?? How are there any BTL deals left at all Quote
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