Wednesday, Nov 07, 2007
Call for health warnings on BTL
Channel4 News: Buy-to-Let investors to be warned
Buy-to-let mortgages should carry investment-style warnings as rising interest rates and the threat of house price falls put landlords at risk of losing money, according to law firm Moore Blatch.
Investments regulated by the FSA must carry a warning that their value can go down as well as up.
The group said that as a buy-to-let property is also an investment, people may seek legal redress if they think they were not warned that their returns could fluctuate. "Many will have seen buy-to-let as a guaranteed investment."
Posted by little professor @ 04:21 PM (450 views) Add Comment
4 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. techieman said...
so of course BTL has now been missold! I see so now the BS and Banks will have to pay the BTLrts that lose money but of course those that have made some dont have to give any back. So if i have a portfolio and make some on some and lose some on others does that mean i get to keep the money on the ones that are profitable and claim misselling on the ones that havent? I see so then (if they have coverage) the BS and Banks claim against their E&O covers, which means Joe Public ends up paying either because Insurance Premiums rise to cover or bank margins rise. take your pick. Or maybe the government puts some (of our ) money in a la NR.
SO everyone thats said right this BTL debacle will end in tears will end up paying not due to bad judgement but because they dont realise that good judgement doesnt get rewarded as another set of "investors" are bailed out, by the very people that exhibit good judgement. I just wish we had some sense of personal responsibility in this country - we are getting more like those US boys every year. For me personally I DIDNt contract out of SERPS (even though the govn tried to bribe us and reduced the value of it scandalously) , I didnt (and wouldnt of had i had one ;-)) get out of a Final Salary scheme to have a private pension plan which would be worth x millions in 30 years, and I didnt buy an endowment mortgage and if i buy shares or FTSE futures or anything else then if it goes wrong i take it on the chin and dont look for the rest of society to bail me out. But i suppose we have to look after those with less financial acumen - thats crap - surely its your responsibility to research things. If things do go wrong because of situations like Enron then yes sue the accountants but BTL for god sake.
Apologies for the rant but i do feel better now.
2. techieman said...
By the way little prof - you posted some charts of average house prices for certain types of property the other day (one graph for semis i think another for flats etc.) these were absolute prices so not real increases. the question i have is where did you get that? Do you have a link? Thanks!!!
3. wiltshire said...
It will be interesting to see how this whole thing pans out because the government have to be wary of screwing those in this country who have been prudent with their income/savings. Admittedly there's a huge number who have spent the lot (and more) but equally there are many who have been careful (witness the queues outside Northern Rock). If the government decide to cast the savers to the wolves I dread to think what will happen. The silver savers will probably torch Downing Street and that'll be for starters. Whatever happens I think Labour are going to pay dearly for the past 10 years.
4. Jonb said...
I just have one problem with this.
A mortgage is not a form of investment.