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If Btl Is Still Such A Good Idea

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Mortgage Works stop processing BTL mortgages the day after SIPPS was blown out of the water. More bad news for BTL as they face increasing CGT and are left with £5 billion trapped in SIPPS, is this the start of the credit crunch for BTL.

The Mortgage Works withdraws from new-build BTL

The Mortgage Works has announced it will cease to accept applications for buy-to-let (BTL) mortgages on newly-built properties.

The lender will only accept buy-to-let applications on properties aged over one year from now on.

All current applications in the pipeline will be honoured. The change only affects new buy-to-let mortgage applications.

Commenting on the decision, Matthew Wyles, group development director, said: "Owing to the current over-supply of newly built property, valuation in this sector is more of an art than a science. Some developers are now prepared to do deals on price outside of the formal contract. In these cases the lender may be unaware of the actual price being paid and ends up relying on a valuation which may in turn be based on erroneous assumptions. We will go back into new build buy-to-let when we believe that the market forces of supply and demand have reached equilibrium."

This announcement relates exclusively to buy-to-let.

06/12/2005

Would that be the assumption that prices always go up B)

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Guest Riser

And now Portland pul the plug on BTL mortgages:

Portman refuses to lend on buy-to-let new flats

The Portman Building Society on Wednesday became the first lender in the UK to refuse buy-to-let mortgages on new flats in a sign of growing fears about the stability of the sector.

The Portman, third largest buy-to-let lender in the UK, said it would avoid lending on new properties until “the market forces of supply and demand” had returned to equilibrium

Portland were not the first as we saw yesterday, how mant more to come B)

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The Portman, third largest buy-to-let lender in the UK, said it would avoid lending on new properties until “the market forces of supply and demand” had returned to equilibrium

Now what effect does a return to equilibrum in supply and demand have on price?

:rolleyes:

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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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