Monday, May 19, 2008
BTL investors under more financial pressure
MortgageSolutions: BTL deals above a ‘psychological’ 6%
Mortgages for Business, the specialist buy-to-let mortgage broker, has warned landlords almost all buy-to-let products in the marketplace are now priced above a ‘psychological’ 6% - a trend they expect to continue for the foreseeable future. The firm noted Cheltenham and Gloucester last week withdrew its 5.89% five year fixed mortgage replacing it with a 6.29% five year fixed rate. Jonathan Moore, head of marketing at Mortgages for Business comments: “Other than a few exclusives available for a limited period, all mortgages on our sourcing system, which searches the market, are priced above 6%. This is first time we have seen this situation this year and certainly for several years. Lenders with mortgage products below 6% have been flooded with applications and have been forced to withdraw
3 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. uncle tom said...
The psychology of prices falling YoY rather puts that little detail in the shade..
2. denzil said...
Most BTL I know are flumoxed by the word, "yield". I can imaging their reaction to being told that rates are "above a ‘psychological’ 6%". Uuhhh!!!
3. tyrellcorporation said...
A few of my mates who've bought into BTL are haemorrhaging cash at an alarming rate. The notion that 'we're in it for the long term' is sounding absurd - just as we thought it did. No matter how much I try to persuade them to sell, they are still resisting. I see capitulation in the next 3 months though and feel late summer will mark a real mood swing and stampede.