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Buy-to-let Investors Soar Prior To Sipps U-turn

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http://www.mortgageintroducer.com/news/new...p?unqueid=15624

Mortgages Direct has revealed buy-to-let mortgages increased by 16 per cent in November as investors geared themselves up for the tax-free residential property investment opportunities in self-invested personal pensions (SIPPs).

This has now been snubbed out by the Government, as the Chancellor scraped the tax break earlier this week.

Peter Gladdy, director of Mortgages Direct commented: “The original proposed changes to SIPPs, where residential property was to become a valid SIPP investment had already boosted the number of buy to let mortgages, as investors were realising the opportunities to boost their pension funds. The Government’s U-turn on SIPPs in the pre budget report is clearly bad news for pension holders who were planning on feathering their retirement nest with tax- free residential property.

“However the renting market is fairly buoyant in this current climate, with many potential homeowners sitting on their hands, waiting to see which way prices will go and therefore opting to rent instead. Landlords are responding proactively to the demand and to the upward trend of rents. The established investor, who takes a long term, professional approach to buy-to-let will continue to buy selectively and carefully.”

With the Bank of England refusing to drop the base rate any further this month, borrowers are continuing to feel the squeeze. The number of borrowers opting for interest only repayments has increased to 39% from 26% last month.

Peter Gladdy added: “It is surprising that more borrowers are opting for interest only repayment. This is not advisable unless a comprehensive repayment method is in place. Borrowers are evidently still feeling the squeeze on their finances. The Bank of England has clearly missed the chance to provide the much needed boost to the consumer and homebuyer’s confidence over the Christmas period.”

13/12/2005

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Holy smoke, the BOE really have created a situation that is FUBAR, it has pushed another cohort of desperate first timers into interest only monetary oblivion helped by their rate cut in the summer.

This con game will end very badly and it is getting far worse as time goes by.

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Holy smoke, the BOE really have created a situation that is FUBAR, it has pushed another cohort of desperate first timers into interest only monetary oblivion helped by their rate cut in the summer.

This con game will end very badly and it is getting far worse as time goes by.

Tag teaming with the Treasury to stimulate the investment of what looks like "Miras millions" to me.

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Tag teaming with the Treasury to stimulate the investment of what looks like "Miras millions" to me.

Somebody mentioned recently the duration of this period compared to Miras, the Miras effect was only about half a year as people scrambled on board regardless of the levels of debt. This has been purposely extended over a far far longer period of time - the number of people over their heads this time around could dwarf the 80's.

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16% is hardly soaring is it...after the extemely low figures of previous months. You might as well say that one Robin in the garden in December, followed by two Robins seen in January means the number Robins seen in Gardens "soared" 100% in one month.

Knee jerk Stats....never believe 'em.

VP

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The number of borrowers opting for interest only repayments has increased to 39% from 26% last month.

I have nothing to say but Pardon..

How many are not paying back the loan?

Christ..

I never knew how unstable it was until now.

and the poor darlings can't cope with 4.5%... bless.. how could they expect to..

People are struggling with paying only interest at this lever????

Anyone who says that it is stable can honestly be considered bonkers...

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Peter Gladdy added: “The Bank of England has clearly missed the chance to provide the much needed boost to the consumer and homebuyer’s confidence over the Christmas period.”

13/12/2005

Doesn't it want to make you spit blood (to coin a phrase)? B@stards like this believe everyone should be up to their necks in debt. What earthly difference to anyone's life would a 0.25% all in IRs have done. Caused everyone to tear out and spend, spend, spend?

It really is despicable. Why don't the government use some of the vast amount of money they take off us to indulge in some public education about mortgages and borrowing in general?

I know lots of young people priced out of the property market, with debts from university round their necks and 20k on credit cards just trying to live.

It's a bloody scandal.

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Can someone clarify this 36% interest only statistic!? is that across the entire mortgage market? or only BTL?

What is the historical average?

This number seems dangerously high.

How does it translate in terms of actual numbers of interest only mortgages?

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What earthly difference to anyone's life would a 0.25% all in IRs have done. Caused everyone to tear out and spend, spend, spend?

It really is despicable. Why don't the government use some of the vast amount of money they take off us to indulge in some public education about mortgages and borrowing in general?

I know lots of young people priced out of the property market, with debts from university round their necks and 20k on credit cards just trying to live.

It's a bloody scandal.

Totally agree with you mate. I think innumeracy in this country is a real problem. I'm not just talking about the fact that people that understand calculus are thought of as "boffins". I'm talking about the fact the general public can't get their heads around the simple numerics of debt, tax, etc. If more people actually understood what they were doing when they took out large loans, then I reckon a lot of the problems we have today with overpriced housing, pension crisis etc. would go away.

And you're right about the 0.25% thing too. It would make such an insignificant difference, and anyway, what's the plan? Go on letting people borrow imaginary money at all costs to keep the economy going? Can't people see that this is going to end in ruin?

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Totally agree with you mate. I think innumeracy in this country is a real problem. I'm not just talking about the fact that people that understand calculus are thought of as "boffins". I'm talking about the fact the general public can't get their heads around the simple numerics of debt, tax, etc. If more people actually understood what they were doing when they took out large loans, then I reckon a lot of the problems we have today with overpriced housing, pension crisis etc. would go away.

And you're right about the 0.25% thing too. It would make such an insignificant difference, and anyway, what's the plan? Go on letting people borrow imaginary money at all costs to keep the economy going? Can't people see that this is going to end in ruin?

No. Because they cannot do the maths. <_< Or they do not want to do the maths, because they would scare themselves witless, and find themselves having to make some very difficult choices, like actually living off what they earn. :huh:

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A bit off topic, but the general public is awful at math, and economics is more like alchemy to them.

We had a bloke come into the Engineering Department the other day, asking how he could calculate the percentage of new windows the council had just installed in his house. Apparently if they occupied more than 40% of the total windows, he got the whole lot for free... he thought it did by looking at them (but had no way of prooving it), and was refusing to pay rent until they installed the rest of the windows.

He had all the measurements of all his windows, just didn't know how to calculate the AREA of new and old windows and then find the ratio.

He asked if any of us would pose as an expert witness at his hearing. :lol:

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A bit off topic, but the general public is awful at math, and economics is more like alchemy to them.

We had a bloke come into the Engineering Department the other day, asking how he could calculate the percentage of new windows the council had just installed in his house. Apparently if they occupied more than 40% of the total windows, he got the whole lot for free... he thought it did by looking at them (but had no way of prooving it), and was refusing to pay rent until they installed the rest of the windows.

He had all the measurements of all his windows, just didn't know how to calculate the AREA of new and old windows and then find the ratio.

He asked if any of us would pose as an expert witness at his hearing. :lol:

Can't believe the amount of free crap people get, and expect, if I need new windows/doors/roof then I buy them :angry:

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16% is hardly soaring is it...after the extemely low figures of previous months. You might as well say that one Robin in the garden in December, followed by two Robins seen in January means the number Robins seen in Gardens "soared" 100% in one month.

Knee jerk Stats....never believe 'em.

VP

16% of 500000 outstanding BTL mortgages is A VERY BIG NUMBER.

...wonder if this percentage is typical.

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A bit off topic, but the general public is awful at math, and economics is more like alchemy to them.

We had a bloke come into the Engineering Department the other day, asking how he could calculate the percentage of new windows the council had just installed in his house. Apparently if they occupied more than 40% of the total windows, he got the whole lot for free... he thought it did by looking at them (but had no way of prooving it), and was refusing to pay rent until they installed the rest of the windows.

He had all the measurements of all his windows, just didn't know how to calculate the AREA of new and old windows and then find the ratio.

He asked if any of us would pose as an expert witness at his hearing. :lol:

Just to continue being off topic, I don't understand this at all. Why would he have to pay in any event as a council tenant? Replacement windows should cost him nothing as he pays a rent and is not responsible for maintenance costs.

This is the beauty of renting council properties - cheap rents no maintenance - full housing benefit if you become unemployed - no negative equity ever.

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He wasn't paying anything for the windows in the first place. He just wanted them all replaced for free. I guess to make his bills cheaper?

The council only put in new UPVC in his upstairs windows, and he wanted them to replace all of them based on some 40% figure he reckoned he'd found in his tenancy agreement. So he did all the ground work chasing down the figures and stuff, just could not do the math to prove that his upstairs windows took up more than 40% of the glazing in his home .

By way of protest he did not pay his rent until the coucil replaced the lower ones. They just served him with lots of red letters and eventually a court hearing, LOL, which got him worried until he came in and asked us to help him with the calculations. He left with a big smile on his face when we calculated he had 42% new windows. Reckoned that figure alone would win him his new windows. :D

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  • 302 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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