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SarahBell

No Btl Finance For Landlords

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Over two thirds (67%) of landlords rely on a buy-to-let mortgage to fund their portfolio, but the findings show that one in five – or approximately 300,000 – landlords have not been able to expand due to difficulties in accessing buy-to-let finance over the last year.


Furthermore, six in 10 landlords (59%) say that lenders fail to consider their individual circumstances, or that current buy-to-let lending criteria is too conservative (56%).



http://www.landlordtoday.co.uk/news_features/No-buy-to-let-finance-for-one-in-five-landlords


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It means that 1 in five are a serious risk to lenders.

It also means half of them think banks are too tight with them.

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Surely by now the government has realised that BTL is a cash cow waiting to be milked? Sorry Georgie, nobody else has any money for your "projects". Fatty Wilson would love to give you some of his unearnt millions.

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Not sure what the finance scene is really like for BTLers at the moment.

One article claims tighter finance. I see BTL mortgage adverts in newspapers and internet media all the time.

Not noticed many knock-backs on internet forums, apart from some BTLers trying to expand, complaining it's 'unfair' need to show income of £25,000 a year.

Just NLA plugging its own BTL sourcing system?

“NLA Mortgages provides a free on-line buy-to-let mortgage search facility which sources from over 600 mortgage products to help landlords find the best product to suit their needs. Mortgage schemes that are not available in the general marketplace are also available through NLA Mortgages – all via the NLA website.”

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Although it's all tightening up with more councils introducing mandatory licensing, and other regulation landlords have to follow; not to mention crazy prices prone to HPC.

Even the hpcers who claim 'excellent yields up north' often not looking at prices that can soften to take real yield way down. And some areas of the north almost as crazy high as London, having seen BTLers pile in.

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Although it's all tightening up with more councils introducing mandatory licensing, and other regulation landlords have to follow; not to mention crazy prices prone to HPC.

Even the hpcers who claim 'excellent yields up north' often not looking at prices that can soften to take real yield way down. And some areas of the north almost as crazy high as London, having seen BTLers pile in.

Most Northern cities have reasonable supply of social housing.

Places like Middlesbrough have been importing misc. refugees to fill them up.

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Most Northern cities have reasonable supply of social housing.

Places like Middlesbrough have been importing misc. refugees to fill them up.

Indeed

Up north it appears difficult to get good tenants, so the voids and the wear and year severely impact the imagined yield

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Over two thirds (67%) of landlords rely on a buy-to-let mortgage to fund their portfolio, but the findings show that one in five – or approximately 300,000 – landlords have not been able to expand due to difficulties in accessing buy-to-let finance over the last year.

Furthermore, six in 10 landlords (59%) say that lenders fail to consider their individual circumstances, or that current buy-to-let lending criteria is too conservative (56%).

http://www.landlordtoday.co.uk/news_features/No-buy-to-let-finance-for-one-in-five-landlords

If they were a safe bet they would have no trouble getting finance, obviously the lenders think property is not such a good bet anymore.

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Indeed

Up north it appears difficult to get good tenants, so the voids and the wear and year severely impact the imagined yield

tear I guess!

Yep. Never ever accept a tenant supplied by the council.

There's probably a good reason why the council are reluctant to house them.

My post was in response to the comment about high yields available in the North.

AFAICT the yields are worse than the South.

There's just not many private. good tenants.

There's a lot of competition.

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Most Northern cities have reasonable supply of social housing.

Places like Middlesbrough have been importing misc. refugees to fill them up.

Yep. Never ever accept a tenant supplied by the council.

There's probably a good reason why the council are reluctant to house them.

My post was in response to the comment about high yields available in the North.

AFAICT the yields are worse than the South.

There's just not many private. good tenants.

There's a lot of competition.

Ah I sort of get your point now - and agree with you that yield by itself can be very misleading - although I don't really know Middlesbrough that well, nor all the workings of landlordism/btl/yield. Only been up there once, for a day, a few years ago. Stayed over in Yarm, and when we headed out for dinner, Gary Pallister was walking towards us and gave us a friendly smile.

Have a read of this Middlesbrough landlord.

07-05-2014

Council agencies are reluctant to house any of their supported tenancy people there. Ironic, really, as the problems in the area have arisen since they introduced selective licensing in the town centre and drove out the problem tenants, who have landed here. There is a homelessness unit, but they have not referred anyone.

[..]I can't sell because they are deep in negative equity, with their valuations having hit 75k in the mid-2000s and dropped now to £30k-odd and having withdrawn 85% to finance other (more successful) purchases. The mortgage costs are extremely low because they are on low tracker rates so I can "carry" them with the income from other properties but am fed up with doing so. This will get harder to do once interest rates rise.

Any suggestions on how to get long-term tenants in them?

http://www.propertytribes.com/area-of-low-demand-t-11110.html

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Totally speculative but here goes.

There's been a small 2 up 2 down house thats been 'Sold' for a good few months - 4 or 5 months I'd say.

I walk by it on my way to work.

I've been waiting for the sign to come down.

I has now. Its gone back For Sale.

The street has seen mainly BTL buyers and a few BOMAD FTBs.

Its not like there's a lot of sales going through - there are sod all.

Can't wait for the Post-MMR Sold numbers to come through on RM.

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Yarm is trying to vote itself out of 'boro - well Stockton, who's politics + councilors make places like Rotherham look like Westminster.

'boro is the only place in the North where you extreme swings in the local area.

Unlike London, where you can switch in a street or two, 'boro you have to drive out a few miles.

Places like Yarm are, Guisborough + Stokesly are great. 4-10 miles out of the centre and 'boro is fantastic.

The actaul 'boro town centre is hellish + getting worse.

God knows what will happen when the social money/tax credits turns.

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Yarm was very pleasant, from what I saw of it. We had been in the Middlesbrough town centre earlier in the day, and also drove through some fairly dismal areas.

I never updated the thread about this landlord guy. Updates from Paddles stopped in 2009. I suspect (but not 100% sure) he went bankrupt in the end in 2012... if the insolvency data below is him, that would probably have been his main home. Although it was bought as a newbuild in 2007 for £226,350 - next to Yarm.

listed for sale on 1st Nov 2012
£470,000 - 4 bed detached house
We are acting in the sale of the above property and have received an offer of £470, 000.

http://www.zoopla.co.uk/property-history/31-portchester-close/ingleby-barwick/stockton-on-tees/ts17-5lq/26817997
Edited by Venger

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I remember that article....it was all so easy. good find

"The investor buys the property on a mortgage of £97,500, paying an initial mortgage rate of 5.5 per cent, then sells up for £147,518 after three years. Result? Er, a return on the investment of minus 1.4 per cent per annum. Whoops!

These typical figures - it is very honest of Paragon Mortgages to put them on its website - underline the difficulty of making money from buy-to-let at a time when property prices are high, interest rates are rising and rents outside the prime London market fairly static."

Link to Paragon BTL Interest rates, fees and costs: http://www.paragon-mortgages.co.uk/pmlintr/Products

Edited by Bloo Loo

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I remember that article....it was all so easy. good find

"The investor buys the property on a mortgage of £97,500, paying an initial mortgage rate of 5.5 per cent, then sells up for £147,518 after three years. Result? Er, a return on the investment of minus 1.4 per cent per annum. Whoops!

These typical figures - it is very honest of Paragon Mortgages to put them on its website - underline the difficulty of making money from buy-to-let at a time when property prices are high, interest rates are rising and rents outside the prime London market fairly static."

Link to Paragon BTL Interest rates, fees and costs: http://www.paragon-mortgages.co.uk/pmlintr/Products

I had not read the main body of the article for a few years; quite interesting.

Looking at the Paragon BTL rates and fees and LTVs etc... surely there will be repeats from new entrant landlords, or 2007 surviving landlords who have expanded into the relfation, if prices soften or as spyguy above... more social money clamped down on/taxes up - well especially if they've been buying at 2007+ 25% prices, as I have noticed many a landlord outbid renter-would-be-FTBs in recent years.

Seen the header at Paragon? Buy-To-Let for Serious Players.

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I knew a hairdresser who invested in an off plan executive new build apartment in central Bradford. He expected to get'professional' people renting from him. Instead he settled for tenants far lower down the social scale who trashed the place. Repeatedly.

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I knew a hairdresser who invested in an off plan executive new build apartment in central Bradford. He expected to get'professional' people renting from him. Instead he settled for tenants far lower down the social scale who trashed the place. Repeatedly.

Professional?

In Bradford?

Only whoes are pros there.

It's hard to know what's gone wrong with Bradford, or even start listing the failings:

http://www.yorkshireeveningpost.co.uk/news/latest-news/top-stories/fears-voiced-after-transfer-of-police-away-from-leeds-to-tackle-rising-crime-in-bradford-revealed-1-6952103

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Professional?

In Bradford?

Only whoes are pros there.

It's hard to know what's gone wrong with Bradford, or even start listing the failings:

http://www.yorkshireeveningpost.co.uk/news/latest-news/top-stories/fears-voiced-after-transfer-of-police-away-from-leeds-to-tackle-rising-crime-in-bradford-revealed-1-6952103

Indeed

It's easy enough to come in from a nice suburb or town, why live in a dodgy area needlessly?

What's gone wrong with Bradford. I think their local politicians are just parochial incompetents, not unlike Liverpool's, for example

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