Sunday, Dec 14, 2008
Predicatable - fanning the flames of the house price inferno
Express.co.uk: LANDLORDS FACE THE SPECTRE OF REPOSSESSION
THOUSANDS of buy-to-let investors face repossession in 2009, according to experts who warn that huge numbers of amateur landlords have bought properties with unrealistic expectations. Many will have been stung because they bought at the top of the market in the past few years at inflated prices and these properties have plummeted in value.
Posted by v stor @ 06:53 PM (240 views) Add Comment
1 Comment
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1. mountain goat said...
I almost rented a flat off a person that had just bought at the top. When I tried to negotiate the rent she said "the estate agent said I could get £485 a month so I am sticking to that". I think that was the extent of her research; the estate agent's advice. Those types of Johny-Come-Lately BTL investors are going to lose huge amounts of money. The Abbey letter incident last week shows what is coming.
Reminder - "The Abbey letter states that mortgage credit is limited to 90% of home values, therefore falling house prices have triggered this clause for thousands of mortgage holders where Abbey reserves the right to call on the short-fall in equity to be made up by lump sum payments.
In response to the letters, Labour MP Nick Ainger, a member of the Treasury Select Committee called on Abbey to withdraw the "outrageous" clause. To which Abbey responded that they have not invoked the clause but maintain the right to do so at a later date and urge home owners in negative equity to make over payments so as to bring the loan to valuations back to below 90%. The growing expectation is that many mortgage banks have written such clauses into their mortgage contracts and will call on homeowners for over payments to reduce the LTV's."- Nadeem_Walayat