Tuesday, May 25, 2010
"Gross buy-to-let lending is predicted to grow to £25.6bn within the next four years"
FT: Datamonitor sees years of growth ahead for BTL
The key findings from independent market analyst Datamonitor predict that gross advances will remain flat this year, but will rise to £15.8bn in 2012, £20.2bn in 2013 and £25.6bn in 2014. This comes after the Council of Mortgage Lenders figures showed that buy-to-let gross advances totalled £8.5bn in 2009. However, Paul Monk, partner of Merseyside-based Balmoral Associates, warned this could spell bad news for the property market...........
Posted by jack c @ 11:01 AM (1470 views) Add Comment
5 Comments
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1. timmy t said...
Gross meaning obscene as opposed to Gross meaning total!
2. righttoleech said...
I love their precise forecasts. I predict BTL will crash and burn.
3. str 2007 said...
Reading through the article, these people make me sick.
They're talking about the rental sector needing to expand, yet their expansion is the main cause of greater demand as they price out young people.
And what is the missing link to their expansion plans - you guessed it - finance. They need greater finance. Not satisfied with their interest only price out FTB business model, now they want more finance.
Seriously, is their any BTL mortgage company that would turn me down for a loan if I rolled up with a 25% deposit ? I don't think so.
So why do they need more finance ?
Perhaps it's lower deposits they're after so they can leverage furher and push up prices higher.
Please someone in government stop these leeches.
ReCaptcha : end horribly
4. jack c said...
str 2007 - there are several lenders getting a bit twitchy at the moment regarding '1st time buyers' who take on a BTL loan and within 6 months decide they want the property for themselves - seems to be happening more and more ie turned down for a normal residential mortgage so they get themselves a BTL deal instead and you now know the rest. A young lad over the street from where I live has just done this - it had me puzzled at first as to how a 22 year old council joiner could buy the property on his own (without BOMAD) until I got the inside story from a guy on his way to the local pub !
5. str 2007 said...
Hi Jack
So no shortage of BTL finance atall then.
I see what they're doing, basically the banks are forcing FTB's to give them 2.5% arrangement fees for BTL loans because the FBers can't justify their own income for the size mortgage they need to compete with BTLers.
It really makes me sick this is allowed to happen. And if FTBers play by the books then they pay the same in rent to a BTLer as they would have paid for their own mortgage.
I'm surprised they're getting away with moving in themselves though.
I gues the trick is to rent out the property to your mates, keep your official address with your parents then move in yourself to your own BTL and let 2 of the rooms to your mates to cover 1/2 or 2/3rds of your mortgage.
Quite criminal that banks and the people that are supposed to oversee them have allowed this situation to occur.