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Dames

Mew'd Deposit

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Hi all ,

was chatting with a guy at work today and he was thinking about raising a deposit for a btl by mewing then getting a btl mortgage.

Now I dont want to go into the pro's/con's of btl in this thread , just want know if he can mew a deposit from an ordinary SVR mortgage to use as a deposit?

Dames

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Guest tenant super
Hi all ,

        was chatting with a guy at work today and he was thinking about raising a deposit for a btl by mewing then getting a btl mortgage.

Now I dont want to go into the pro's/con's of btl in this thread , just want know if he can mew a deposit from an ordinary SVR mortgage to use as a deposit?

Dames

I think this is a common way of raising BTL deposits Dames.

The BOE noted (happily) recently that lots of mew had been reinvested into the property, unhappily they had not realised that rather than being spent on property improvements much has found it's way into BTL property investment. This is called gearing, and it's effect on the property prices must be to increase volatility. Consequently and with all other things being equal, the bust should be bigger than the boom.

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Hi all ,

        was chatting with a guy at work today and he was thinking about raising a deposit for a btl by mewing then getting a btl mortgage.

Now I dont want to go into the pro's/con's of btl in this thread , just want know if he can mew a deposit from an ordinary SVR mortgage to use as a deposit?

Dames

I think this is how most recent btl's got there deposit.

Also think it has been popular method with mortage brokers. New mortgage on own home - mortgage on buy to let - two lots of commission. Let's not worry about the leverage risk.

I don't know the percentages but I think a lot of financial advisers are also mortgage brokers and a lot of them have been suggesting this idea to their clients. Works well in a rising market though.

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Guest Charlie The Tramp

So the guy MEWs on his own property for a BTL deposit.

BTL rent does not cover the IO BTL mortgage.

Increased repayments to find on his own re mortgaged property.

Will have to get my slide rule out for this complicated mathematical problem as simple arithmetic tells me, Oh dear. :(

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So the guy MEWs on his own property for a BTL deposit.

BTL rent does not cover the IO BTL mortgage.

Increased repayments to find on his own re mortgaged property.

Will have to get my slide rule out for this complicated mathematical problem as simple arithmetic tells me, Oh dear.  :(

Oh dear Indeed. - and it's still happening.

Along with a significant amount of exagerations of income on self cert mortgages - IMHO

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Hi all ,

        was chatting with a guy at work today and he was thinking about raising a deposit for a btl by mewing then getting a btl mortgage.

Now I dont want to go into the pro's/con's of btl in this thread , just want know if he can mew a deposit from an ordinary SVR mortgage to use as a deposit?

Dames

Dames I have to say that you display the naivety of HPC posters so well. For an established poster on this & other forums, I am suprised you asked this question. :(

My aunt (the homeless one in Australia) also didn't believe this was a normal event in our society....

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I was intesrested to see the BTL plan..

and I approached an advosor on this invesment.

I was told that I would...

"Have to be prepared to subsidise the rental income to cover costs."

"Be prepared to make only interest payments"

and that.

"Not to worry as prices had frozen for a few months, but he saw that prices would certainly be heading back to about 20% a year after the new year...."

the loss I would make each month would be short term.. I was assured of a killing..

and I needent worry about any reports,,, house investment hasn't even reached top gear..

to be honest.. if I had no idea about investments...

no.. thats still rubbish..

isn't that rubbish..

and mewing to get the deposit.. (I havent got a mortage..)

that means you are owning two properties and motgaged to the hilt at the top of the market.. with one costing you a lot of money for someone else to live in it..

I was advised to make both mortgages interst only..

People do this.. People have access to endless supplies of money and actually do this.. my god..

Getting a heroin addiction and sleeping with a mafia don's wife.. seem like much safer life choices.. better informed..

Its like the extreme sport of investment.. crazy man.. crazy... living on the edge..

Hell I wish I had a house.. I could Mew and buy a nice shiny brand new car.. really expensive holidays..

Shiny new cars.. saw a young guy in a brand new BMW.. my mate turned to me.."Bet that prat has tonnes of debt..."

No one thinks flash = succesful anymore..

Flash = debt

Gordons Britain..

gordons People.. lambs to the slaughter..

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Guest wrongmove
Now I dont want to go into the pro's/con's of btl in this thread , just want know if he can mew a deposit from an ordinary SVR mortgage to use as a deposit?

Dames, this is basically how it works !

Then you "improve" the BTL, wait 6 months for a 10% rise, MEW back your deposit and repeat.

Like a snake eating its own tail if prices stop rising.

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I think this is a common way of raising BTL deposits Dames. 

The BOE noted (happily) recently that lots of mew had been reinvested into the property, unhappily they had not realised that rather than being spent on property improvements much has found it's way into BTL property investment.  This is called gearing, and it's effect on the property prices must be to increase volatility.  Consequently and with all other things being equal, the bust should be bigger than the boom.

'Gearing' seems somewhat of a misnomer, to me - I'd suggest that 'Dominoing' or 'House-of-cardsing' might be more apt..

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Dames I have to say that you display the naivety of HPC posters so well. For an established poster on this & other forums, I am suprised you asked this question.  :(

My aunt (the homeless one in Australia) also didn't believe this was a normal event in our society....

It was more a question of the technicality or legitimacy of it to be honest ttrtr , hence the specificness of it being raised on an SVR without a reason being given.

Dames

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Dames I have to say that you display the naivety of HPC posters so well. For an established poster on this & other forums, I am suprised you asked this question.  :(

My aunt (the homeless one in Australia) also didn't believe this was a normal event in our society....

Yup, also means when the wolves are at the door demanding their money you can just hand them the house of cards (or the keys to them) without risking any of your own capital, especially if you've only paid £3k on the mortgage (hopefully covered by rent)

All most stand to lose is the £10k deposit 20 MEW's back down the chain.

Every bubble feeds upon itself.

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Yup, also means when the wolves are at the door demanding their money you can just hand them the house of cards (or the keys to them) without risking any of your own capital, especially if you've only paid £3k on the mortgage (hopefully covered by rent)

All most stand to lose is the £10k deposit 20 MEW's back down the chain.

Every bubble feeds upon itself.

Providing each sale covers the oustanding capital amount owing on each property of course.

Dames

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Those who know what they're doing will have incorporated so it's kept at arms length, no doubt that includes 'Rents.

Can't speak for the Rosie's of this world.

Those are the type Im thinking of , just checking really as a guy I know and his mrs are thinking about doing it and I told him to do a lot of research before he does anyhing.

D

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Shiny new cars..  saw a young guy in a brand new BMW.. my mate turned to me.."Bet that prat has tonnes of debt..."

No one thinks flash = succesful anymore..

Flash = debt

the sooner we associate flashy, ostentatious displays of wealth with the sub-conscious thought "arsehole. wonder how much s/he owes?" the better.

if i had my way (and it's probably for the best that i rarely do) there would be 3 types of road vehicle. a small van, a medium van and a large van. they would be available in grey and any kind of customisation would not be tolerated. :D

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  • 301 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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