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CrashedOutAndBurned

Guardian Article

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http://money.guardian.co.uk/property/first...1591237,00.html

Translation: 'The problem of FTBs is that they can't get their hands on enough crippling debt.'

The sad thing is, many FTBs DO think in this way - 'Oh, if only I could borrow 10x my income, that first-run slum could be mine and I'd never have to rent again'.

Taking on stupid debts you can't afford is huge risk whatever the money's for.

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Problem is some people are stupid enough to pay massives amounts in rent (As much if not more than a mortgage) - if people refused and suffered for a bit the btl market could be bought to its knees!

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ive seem some people take on eye watering rents. thats a really crap thing to do. eyewatering mortgage is one thing, but to rent ? a real waste. if your going to rent - you should be able save or you would never be able to leave.

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The last suggestion is to lie about how much you earn... they say its fraud and you shouldnt do it, but in the next paragraph they suggest it is still an option....

Edited by moosetea

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That is why the Guardian makes me ill when I look at it (rarely!) - the newspaper with a social conscience? Rubbish. Articles sponsored (see ads/links for which The G will get paid) ) by lenders/mortgage advisers/investment property firms etc. Shameful.

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Problem is some people are stupid enough to pay massives amounts in rent (As much if not more than a mortgage) - if people refused and suffered for a bit the btl market could be bought to its knees!

I agree, but to be fair the media is peddling spin that rents are rising.

My BTLer friend tells me the rent she gets doesn't cover the mortgage she pays, but is convinced this doesn't matter as the value is 'sure' to go up in the longterm. If the tenant had refused to pay what she wanted for the rent, then she would have to find someone else or she'd need to raise extra cash, both of which she would struggle to do.

I was looking through a local property paper last night and there are loads of places for rent, plus some of the 'asking rents' have come down by as much as £100 per month.

This is completely the opposite to what is reported in the media.

LG

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There is a definate over supply of property available to rent in my locality. A potential tenant has a great bargaining position. Rents must be falling as a result.

Prude

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here in North Yorks in spite of huge number of BTL purchases rental demand seems to be insatiable.......

Two-up-two-downs are being snapped up at £700 a month................Single mums and Eastern Europeans are fuelling the demand...................

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The flat beside me is available to rent for the third time in two years. Rent has gone up from £350 to £375, and is now being advertised at £495!!! What is that about? Looking at the rental websites, comparable flats seem to be going for the same sort of price so I will be interested to see how long it lies empty.

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Translation: 'The problem of FTBs is that they can't get their hands on enough crippling debt.'

Yes Definately. As interest rates are low (and always will be. erm :unsure: ) the only problem with the debt side is things is the huge repayment of capital.

Solution - Banks should offer a 350 year repayment mortgage to make it easier to repay the capital portion.

Oh hang on a minute, they do - it's called "interest only"

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here in North Yorks in spite of huge number of BTL purchases rental demand seems to be insatiable.......

Two-up-two-downs are being snapped up at £700 a month................Single mums and Eastern Europeans are fuelling the demand...................

Agree, we have to pay £1k a month for a 4 bed detached. The 3 bed semi next door is £ 850.00pcm.!!

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  • 302 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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