@contradevian Posted August 8, 2013 Share Posted August 8, 2013 Had a walk around the new student housing developments in my town earlier. We now have four big cranes! Boy is this going to big when it goes online. Its gonna be carnage in BTL student land Quote Link to comment Share on other sites More sharing options...
Bland Unsight Posted August 8, 2013 Share Posted August 8, 2013 I am just reading the Nationwide interim financials. It's the same there with loans in the non residential significantly higher in the 3 month arrears category. The CML are quite brazen about BTL repos In terms of loan performance, 1.14% of buy-to-let loans ended the year in arrears of more than three months, compared with 2.03% of owner-occupier loans. On the other hand, the annual repossession rate at 0.48% was higher than the equivalent owner-occupier rate of 0.27%, reflecting the different considerations involved in the two sectors. Source: Buy-to-let lending £16.4 billion in 2012 14 Feb 13 I also like The arrears performance of buy-to-let loans is better than the owner-occupier market, but the repossession rate is higher. This should be no surprise. For obvious reasons, lenders make particularly strenuous efforts to show forbearance over sometimes very extended periods to home-owners to try to help them keep their homes wherever realistically possible. This is a less marked imperative in the buy-to-let sector where greater fluidity over shorter timescales is normal. Provided the landlord has a bona fide buy-to-let mortgage and tenancy is recognised by the lender, the tenant's rights are unchanged even if their landlord does default. Source: Number of buy-to-let properties up by 84,000 in 2011, says CML, 09 Feb 12 Even the CML have mixed feelings about BTL! H/T FreeTrader - with the CML being cool as custard about repossessing BTL at the drop of a hat and BTL arrears on the up, this could be the end of the beginning as the banks start to call time on the financial weak and politically soft targets. Quote Link to comment Share on other sites More sharing options...
koala_bear Posted August 8, 2013 Share Posted August 8, 2013 The arrears rate is particularly impressive when you consider how accommodating BoE monetary policy has been. Indeed but I don't think it matters to the lenders the much. TMW (aka NW) offering max 75% or 80% LTV probably means they will do OK if they repossess unless the property has been stripped etc. Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted August 9, 2013 Share Posted August 9, 2013 The CML are quite brazen about BTL repos [snip] Looking at your quoted numbers COTB, I think it's obvious I've made a mistake in my interpretation of the arrears statistic in the latest CML press release. I can only think they must be quoting >3 months arrears as a proportion of total arrears this time (very unusual for them). The release says: "Buy-to-let mortgages in arrears of over three months accounted for 8.4% of the total, up slightly from 8.3% in the preceding quarter but down from 9.7% a year earlier." ...but looking at last year's August press release it says: "The data showed a slight improvement in the performance of buy-to-let loans, with the proportion of borrowers more than three months in arrears declining from 1.69% at the end of the first quarter to 1.56% at the end of June." I should have realised the number was too high so I have no excuses despite the ambiguous wording. Apologies to everyone for that. Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted August 9, 2013 Share Posted August 9, 2013 Front page of the FT print edition: Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted August 9, 2013 Share Posted August 9, 2013 Buy-to-let fuels house price boom Guardian headline. Quote Link to comment Share on other sites More sharing options...
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