Wednesday, Nov 21, 2007
Bye bye buy to let
ThisWasMoney: Buy-to-let faces meltdown threat
"The rug has been pulled out from underneath Britain's buy-to-let mortgage boom, threatening a meltdown in the property market. Paragon plans to slash the number of buy-to-let mortgages it offers by 50% in 2008 - a lead which other lenders are expected to follow. Concerns about the future of buy-to-let mortgages were fuelled by a separate announcement from Bradford & Bingley - the UK's biggest buy-to-let mortgage lender - that it has taken urgent measures to raise ready cash." Bye bye
Posted by confused76 @ 07:34 AM (484 views) Add Comment
7 Comments
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1. Stevie Dee said...
The question confused76 is, how much are the executives of Paragon going to walk away with or how much have they squirrelled away already. Again, another couple of candidate for "Tosser of the Year Award 2007", must say there is certainly "stiff" competition this year, especially in the "newcomers" category.
Pardon the puns!!!
2. Janelle said...
Good! There is too much greed surrounding buy to let investers. There's an apparent housing shortage, so our government lets people hoard the very thing in short supply for their own personal profit. However, we shouldn't be surprised by the greed, after all there are people starving while other nations hoard food, there are people dying because they cant get proper healthcare and the environment is being destroyed. Like many of these issues, the only civilised way to combat the problem of house prices is through legislation, but we know from bitter experience that it's only when disaster has already struck that there's a slim chance something will be done. Bring it on...
3. sosoon said...
A blast form the past, I'm sure some of you guys will remember the significance of the link below and what it really meant
http://www.guardian.co.uk/business/2005/dec/09/buyingtolet.money
4. Si said...
I am SO glad I didn't move into a certain house earlier this year (June-ish), which was owned by a middle aged BTL lady who was just completing on another house. She'd bought the house I looked at 2 years previously. I would be very surprised if she didn't try to sell both very soon.
I didn't move in because she refused to put my deposit into the Tenancy Deposit Scheme... I wonder why.
5. disillusioned said...
"Paragon is particularly vulnerable to the credit crunch because, unlike banks and building societies, it has no savings customers. This means it has to raise all the money it lends to individuals by borrowing on international markets."
Oh my God! How did they survive for this long!!!
6. uncle tom said...
50% fewer? - Looks more likely to be 100% fewer - i.e. none, as they'll be out of business!
Things are unwinding very rapidly - had a chat with my stockbroker yesterday, and spent some time talking seriously about the security of commercial deposits in the UK's main banks. Despite lousy returns, there is some sense in buying very short dated gilts at the moment..
7. wiltshire said...
Awwwhh, don't worry about deposits with the UK's main banks. I'm sure the Treasury will do a 'Northern Rock' should any other institutions get into similar trouble. Don't you think???