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TeddyBear

Mse Btletter In Trouble

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Link to thread Can't aff ord to keep my Buy to Lets - will I lose my home too?

This thread is from a guy who bought 4 BTLs at the peak "'cos everyone else was doing it at the time". At first I thought it was a HPCer on a wind up but poster seems to have been around for a while. All in neg equity now, 3 with voids. He's screwed basically. Currently covering mortgages himself while sinking more into debt (standing at 25kish at the moment).

Even if he can rent out now, scarily this is what's to come.."Our other concern is being tied to the interest rate. If that goes up to say 6%-7% then we really would struggle, even with them all occupied. Fingers crossed by the time that happens houses will be selling again and we can cut our losses".

He thinks that high interest rates = higher house prices?

How could those in power ever think that private landlords is the way to go...yes, I'm sure we'd love to be renting from this guy at risk of repossession and presumably couldn't afford a minor repair let alone a major one.

I even feel sorry for the BTLetter, a sheeple but with a young family who is surely suffering from the financial strain he must be feeling?

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I even feel sorry for the BTLetter, a sheeple but with a young family who is surely suffering from the financial strain he must be feeling?

I couldn't care less about the strain he might be feeling. He can try having a young family and living in a shared rented house like others have done whilst trying to save towards buying a home. All the time morons like him buying everything up at ever higher prices. This guy made his own decisions and was probably was happy to brag about his own intelligence on the up. 5 houses.

And he still wants to escape with not just his own house but the house of value in a nice area which he's creaming good rent money from. Put his houses on the market so the sensible young families have a chance.

Is there any way I can get out of this horrible mess with the one good house and my own house in tact?

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Our other concern is being tied to the interest rate. If that goes up to say 6%-7% then we really would struggle, even with them all occupied.

6%? Stratospheric or what :huh:

A few years ago when house prices started going crazy I bought 4 houses on Buy To Let and let them out.

In recent months the house prices have fallen pretty sharply, and I wish I could sell them but they are not going for anything near what I paid for them.

I have lots of debt built up over the years (around £25,000 now - mainly from the houses) and I'm rapidly running out of money. Three of the houses are now empty, as they are in a bad area and i'm struggling to meet the mortgage payments (not missed any payments as yet but getting close). The other one is occupied long term and is in a nice area.

I'm getting to the point where I can only just get by, and I might not be able to keep up repayments on both the debts I have built up, and the mortgage payments on the houses. Obviously this is a real worry, as I have a young family.

Is there any way I can get out of this horrible mess with the one good house and my own house in tact?

I realise I'm stupid for buying these houses in the first place and not really knowing what I was doing, but I guess what is done is done now.

And this why so many people cannot afford to buy their own home. Reckless debt-fuelled gambling by financial geniuses / idiots (delete as appropriate) funded by idiot banks.

The OP has damaged other people by pushing up house prices so you reap what you sow.

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You're both right of course but I still hold more anger to the financial institutions and the government who let this destruction go on. The ultimate in short term gain for power hungry and money blinded MPs (busy flipping their own expenses paid houses rather than stopping to look at the damage being done to society) and bankers involved in mortgages and mortgage securitisation. I worked in financial services a long time ago and there were all sorts of protections in place for selling people dangerous products and we had to do due diligence when someone applied for money, this was all thrown out of the window to the detriment of the vast majority.

Edited by TeddyBear

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You're both right of course but I still hold more anger to the financial institutions and the government who let this destruction go on. The ultimate in short term gain for power hungry and money blinded MPs (busy flipping their own expenses paid houses rather than stopping to look at the damage being done to society) and bankers involved in mortgages and mortgage securitisation. I worked in financial services a long time ago and there were all sorts of protections in place for selling people dangerous products and we had to do due diligence when someone applied for money, this was all thrown out of the window to the detriment of the vast majority.

There will be thousands of people like this BTLer with 1-4 properties who cannot maintain them or deal with the voids. As interest rates creep up, this will be the end of it. The rates for BTL have always been higher anyway and 6% + is already here. Not only that, there may be no fixed rate deals which can help since the pressure is for rates to rise. With negative equity refinancing will be impossible. You are stuck with the same lender.

These people have all got 85% BTL mortgages, when in the 'good ol' days' 70% LTV was a max and 60% with some. That kept it for only a few who had the wealth to go through with it and not the amateur who remortgaged his own home to provide 15% deposit and keep buying more and more. A house of cards. Wait for the wind - it's blowing a little gust at present and the typhoon is just out of sight but crossing the Atlantic.

Edited by plummet expert

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There will be thousands of people like this BTLer with 1-4 properties who cannot maintain them or deal with the voids.

I just makes me so angry that anyone thought that this might be a good idea, I am talking about the lenders/FSA etc. It is in people's nature to follow the crowd and for a long time BTL seemed to be a sure fire 'get rich quick' scheme. Alot of people are going to go through alot of pain and misery based on this stupid idea that HPI was such a great thing and we should all take advantage of it.

But UK property has been overpriced by any sensible measure for years now yet the banks contined to lend - and were allowed to continue to lend long after it was in any way sensible.

What I dont understand is that it is all taking so long to unravel, I would say it has been a good 6/7 years (possibly longer) that prices have been out of touch with reality yet they really are sticking far longer than I thought possible and some even are expecting prices to continue to rise....

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I just makes me so angry that anyone thought that this might be a good idea,

1-4 properties

25M worth

or 800+ like fergus?

Some landlords are collecting streets like people collect football stickers.

Edited by SarahBell

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I just makes me so angry that anyone thought that this might be a good idea, I am talking about the lenders/FSA etc. It is in people's nature to follow the crowd and for a long time BTL seemed to be a sure fire 'get rich quick' scheme. Alot of people are going to go through alot of pain and misery based on this stupid idea that HPI was such a great thing and we should all take advantage of it.

But UK property has been overpriced by any sensible measure for years now yet the banks contined to lend - and were allowed to continue to lend long after it was in any way sensible.

What I dont understand is that it is all taking so long to unravel, I would say it has been a good 6/7 years (possibly longer) that prices have been out of touch with reality yet they really are sticking far longer than I thought possible and some even are expecting prices to continue to rise....

Love to know what bank he/she is with, a tax payer subsidised one?

The hard sell was there clear as the nose on your face. When "Luxury Appointed" rabbit hutches with no parking are asking £200K.... but a bargain at only £170K if you buy 4 of em before next Thursday....is instant profit of £120K = A FAT commission for taking money from a fool!

That + the cap on government subsidised housing benefit will crucify the London market £1000 per week, just so kids can stay at same school? Just try and explain a benefit like that to someone in China... even someone with a really crap GCSE in maths... would know the sums don't add up...

but hey we can still "Stimulate" our way to a recovery!

I think affordable housing...Is about to become a reality! but a lot of pain will come with it.

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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