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Buy-To-Let Borrowing Grows While Other Buyers Struggle

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Lending to landlords is up 9pc over the year, while lending to mainstream homeowners and first-time buyers falls

Landlords are the only group borrowing more than a year ago, according to the latest lending industry data, while first-time buyers and ordinary homeowners are taking out fewer loans than at the same time last year.

The Council of Mortgage Lenders figures for November, published today, confirmed the general slowdown in the housing market already evident in much data from other sources. But they also highlighted the fact that buying-to-let remains in rude health, with lending to landlords up 9pc compared with the year before. Overall lending to mainstream home-buyers fell by 7pc over the year to 55,600 loans in November.

Lending to first-time buyers was 3pc down on the year before.

On a monthly basis lending to all borrowers fell in November compared to October, although this could be ascribed to a seasonal slowdown. The CML's figures are not seasonally adjusted to factor this in.

Remortgaging - where existing borrowers remain in their home but switch lender - is also in decline, down 16pc on November last year. This is despite the continuing fall in mortgage rates during the period, and the emergence some lowest-ever rates for re-mortgagers. [more at link]

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11344772/Buy-to-let-borrowing-grows-while-other-buyers-struggle.html?WT.mc_id=e_3833706&WT.tsrc=email&etype=frontpage&utm_source=email&utm_medium=Edi_FPM_New_2015_1_14&utm_campaign=3833706

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marvelous...another look back at history by our ever present and questioning press

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The lowest ever mortgage rates and still remortgage numbers are falling year on year according to the OP quote. Remortgage numbers might be at record lows

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Let me re-write that for you:

'Lending to people stupid enough to secure an unprofitable BTL on their own house rises. All other lending falls.'

When I look at the empty rentals + low to negative yields around me, I do wonder if the LLs have read the terms + conditions.

When, they can always hand the keys back to the bank I guess . . .

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The lowest ever mortgage rates and still remortgage numbers are falling year on year according to the OP quote. Remortgage numbers might be at record lows

Why?

Post 2002 mortgagees failing to meet the equity requirements?

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The lowest ever mortgage rates and still remortgage numbers are falling year on year according to the OP quote. Remortgage numbers might be at record lows

Might be because the upfront fees are £1000+ in many cases.

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The lowest ever mortgage rates and still remortgage numbers are falling year on year according to the OP quote. Remortgage numbers might be at record lows

Could this be the effects of the new MMR rules ,leaving a lot of those with mortgages unable to remortgage

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Could this be the effects of the new MMR rules ,leaving a lot of those with mortgages unable to remortgage

They're undoubtedly also affecting first time buyers.

Whereas they don't even apply to BTL.

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Quite. Next time, hard-working homeowners may well be bailed out, but landlords won't.

Why do you say that?

If recent history has taught us anything it's precisely the opposite I would have thought.

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Another day, another nail in the coffin of the likes of me ever owning a property. I hope these parasites and their 'investments' fall off a cliff when/if the crash ever comes.

Me too. Was a twenty something when this started, now a recent thirty something. :-/

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They're undoubtedly also affecting first time buyers.

Whereas they don't even apply to BTL.

That is why you are finding more and more first time buyers are now buy to let buyers....a home of their own that they do not live in, someone else does. ;)

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That is why you are finding more and more first time buyers are now buy to let buyers....a home of their own that they do not live in, someone else does. ;)

Not living in their own BTL? I assume lenders closed that loophole around MMR.

I'm not sure who is ramping up the BTL lending. Would probably need to check the building society association numbers. Now if I checked and the bulk of the loan growth is in the building society sector that would be interesting.

Some BSA press:-

http://www.bsa.org.uk/information/publications/mortgage-matters/buy-to-let-under-the-regulatory-spotlight,-again/

EDIT: The CML release shows that alot of BTL activity is re-mortgaging. Not sure why. Could be the business models?

http://www.cml.org.uk/cml/media/press/4117

Edited by Ash4781

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Scanning through a list of places on RightMove I've seen "Buy to let investors only." That's just wrong in every way.

Edited by Riedquat

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Me too. Was a twenty something when this started, now a recent thirty something. :-/

Me too. It's sad really. I joined this site aged 25 thinking that property was overpriced. I am 37 tomorrow, so definitely no longer a 20 something. I still think property is overpriced. Tragic. I doubt I am alone. Back in the early 2000's I could perhaps have got on the ladder. Wish I had. Never mind. Saddens me really that an entire generation has been so shafted. This will take years to sort out. Even if the crash is underway and property drops off a cliff, how many 1000's of % have we got to reverse before things become affordable. Where I am living now - 220k in the early 2000's, 1.2 million now. If I could speak to my younger self...

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If I could speak to my younger self...

You're far from the only one thinking that, I reckon!

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I went to look at a 3 bed town house that is up for auction on the 29th.

There were 5 other people/couples there in the 20 minutes i hung around, and everyone of them was aged 50+ and looked to me to be on the hunt to boost their portfolio, quite sickening to see the enemy close up.

A 3 storey house in an area surrounded by bungalows and 2 storey houses isn't the kind of place id imagine people of this age to be looking to buy to live in.

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Could this be the effects of the new MMR rules ,leaving a lot of those with mortgages unable to remortgage

quite possibly. I self certed in 2006 and what with lack of equity and varying income, I don't think many lenders would touch me now.

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