Tuesday, May 11, 2010

Relax those criteria - fill your boots time

Times: Lenders boost BTL market

Oh dear 2.

Posted by chrisch @ 08:58 AM (697 views) Add Comment

3 Comments

1. Crunchy said...

The Penthouse High Rollers that peed their pants at the roulette table for fear of missing another stack of chips and seeing the next loser wiped out.

The Croupiers look on as they have done many times in the past. The House is so welcoming, so irresistible but when the chips are down the House always wins.

Tuesday, May 11, 2010 09:23AM Report Comment
 

2. str 2007 said...

More details in this article, 6.25% interest rate with £999 arrangement fee and 20% deposit.
I can't believe you can make the numbers add up on those rates.

In my area a £300k house will rent for about £1000 per month.

Given the benefit of a super deal lets lop £50k off the price of the house and take off the 20% deposit, so you're left with borrowing £200k.

£200k * 6.25% = £1042 per month.

So you're interest only payment will be more than gross rent assuming no void periods.

Then you've got maintenance and agency fees.

This deal is under water before you've started unless you live in an area of very cheap houses and very high rents (which is unlikely).

I might look up this deal if prices fall 20-30%, not before.

Tuesday, May 11, 2010 09:30AM Report Comment
 

3. 51ck-6-51x said...

Why do the media publish such drivel - free marketing for a poor product just to fill their pages!

Tuesday, May 11, 2010 11:25AM Report Comment
 

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