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Oldlurker

When Did Btl Mortgages Become Available ?

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I've been working under the assumption that BTL mortgages were the product of the new labour economic miracle, representing the strongest factor leading to todays market level.

Is this correct ? What year did they first appear ?

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I've been working under the assumption that BTL mortgages were the product of the new labour economic miracle, representing the strongest factor leading to todays market level.

Is this correct ? What year did they first appear ?

As a teenager in the mid eighties I worked for some Asian guys in North London. I soon became aware that property aquisition was deeply embeded in their culture. The same was true of the Greeks and Turks.

They used to tell me never to get a pension or savings policy as they were a waste of money.

Im a very inquisative person so took note of everything they did.

They didnt use B2L mortgages. In those days they took out multiple mortgages in various differnet ways. One common way was to apply over and over as a FTB.

By the early ninieties I became aware of white the ideginous population turning to property investment. Again all sorts of novel ways were employed to obtain the mortgages.

I joined them later and my first 2 mortgages (after my resi one that is) were 95% mortgages, with Standard Life Bank and Intelligent Finance. These lenders allowed me to say I was going to use the new property as a base during the week - closer to a new 'project' I was working (not) on.

In the early days B2L mortgages were hard to come by but as Ive always found, systems are there to be exploited.

The level of B2L property is far higher than official stats show for above and other reasons. A current ruse is to let the existing home and move into a new one, then repeat this. None of these deals show as B2L.

THIS IS WHY I CONSTANTLY TELL U LOT TO IGNORE OFFICIAL STATS AND GRAPHS WHETHER THEY PERTAIN TO HOUSING, AVERAGE INCOMES OR THE NUMBER OF PEOPLE CLAIMING BENEFITS. Its all nonsense.

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My first BTL was obtained using a FTB mortgage, and has only recently been made 'official' using a proper BTL mortgage. I suspect that this shows in the statistics as 'recent BTL boom' even though the house has been used like this for many years.

You're absolutely right about statistics, it's all lying with numbers and 43% of them are made up on the spot.

Buckers

42%

Edited by theChuz

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It seems to be though that anybody with the slightest understanding of human nature and a GCE level understanding of Economics would have been able to foresee that BTL mortgages would over the long run be a bad thing, ultimately leading to the current inequitable scenario and ultimate re-equilibrium / crash / recession...

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I've been working under the assumption that BTL mortgages were the product of the new labour economic miracle, representing the strongest factor leading to todays market level.

Is this correct ? What year did they first appear ?

1996

THIS IS WHY I CONSTANTLY TELL U LOT TO IGNORE OFFICIAL STATS AND GRAPHS WHETHER THEY PERTAIN TO HOUSING, AVERAGE INCOMES OR THE NUMBER OF PEOPLE CLAIMING BENEFITS. Its all nonsense.

When will you ever learn that the old days of high inflation and bulk up on debt being good is well and truly over.

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The level of B2L property is far higher than official stats show for above and other reasons. A current ruse is to let the existing home and move into a new one, then repeat this. None of these deals show as B2L.

That's sort of what I intend to do in a few years.

I paid my current 3 bed house off several years ago and am now patiently waiting (with a huge wad of savings) for the correction/crash.

I'll then rent this house out and use the rent towards buying a bigger house.

Just got to time it all correctly...

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That's sort of what I intend to do in a few years.

I paid my current 3 bed house off several years ago and am now patiently waiting (with a huge wad of savings) for the correction/crash.

I'll then rent this house out and use the rent towards buying a bigger house.

Just got to time it all correctly...

I can remember going to my local Halifax Building Society back in 1991 with my girlfriend at the time and asking about a mortgage with the intention of a buy to let.

I still remember the answer clearly "I'm afraid we don't do that sort of thing here".

Nowadays I have the Chelsea BS phoning regularly pushing the very same thing!

Incidentally, I was beginning to think that I was the only home owner on here that was waiting for a crash to happen?

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The level of B2L property is far higher than official stats show for above and other reasons. A current ruse is to let the existing home and move into a new one, then repeat this. None of these deals show as B2L.

THIS IS WHY I CONSTANTLY TELL U LOT TO IGNORE OFFICIAL STATS AND GRAPHS WHETHER THEY PERTAIN TO HOUSING, AVERAGE INCOMES OR THE NUMBER OF PEOPLE CLAIMING BENEFITS. Its all nonsense.

Indeed. This means that the level of gearing in the property market is much higher than is generally understood. And its a reason that the level of potential risk in that market is consistently underestimated by official reports.

Any significant economic shock (admittedly I wonder how big it will have to get after 2005) or large increase in interest rates could be more serious due to this gearing. As the debt unwinds, it will take prices lower and lower.

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I can remember going to my local Halifax Building Society back in 1991 with my girlfriend at the time and asking about a mortgage with the intention of a buy to let.

I still remember the answer clearly "I'm afraid we don't do that sort of thing here".

Nowadays I have the Chelsea BS phoning regularly pushing the very same thing!

Incidentally, I was beginning to think that I was the only home owner on here that was waiting for a crash to happen?

Yup, I'm a homeowner, hoping for a crash.

I considered STR but it was not worth the hassle in my case.

I want to have a bigger house, but I don't want any serious debt. I've been debt free for 4 years now and I kind of like it!

The bigger the crash, the bigger the house I can upgrade to. In a way it doesn't matter that my current house will crash in value as I am going to rent it out anyway. (Just hope rents don't crash further! :( )

The longer I have to wait, the bigger my savings get and the bigger the house I can buy.

Bring on the crash... (but not for a while yet, please)

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I want to have a bigger house

Why don't you simply extend the house you're already in? Is this "big house" going to be some kind of status symbol or something? :rolleyes:

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Why does everyone slag off buy to let and then announce that "once the crash comes" they will be the only ones that can let their house and miraculously get a larger one?

Surely that is "buy to let" - exactly what seems to get the most abuse from this site?

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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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