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State Banks Prime The Buy-To-Let Timebomb: Boe Fears Surge In Loans To Landlords Could Hit The Economy When Interest Rates Go Up

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From the article:

Mark Garnier, Conservative MP for Wyre Forest, said the Chancellor’s changes should bring private landlords’ tax relief more in line with the rates of relief companies could claim, currently 20 per cent.

He added: ‘Buy-to-let has massively distorted the property market, resulting in rises in prices. We also don’t particularly want the nation’s working capital in non-productive assets. When you have a buy-to-let you don’t employ people to create widgets or manufacture aircraft engines.’

The Conservatives are taking this sucker down.

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From the article:

The Conservatives are taking this sucker down.

The problem was always obvious perhaps it was just a matter of timing ,but i must admit i did not see it coming ,was praying for it though

BTL was/is the foundations of the pyramid for the last five years or so ,PB is starting to show a good few SSTC back to available in the last few days :D

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From the article:

The Conservatives are taking this sucker down.

Wow! Like a flaming dragon punch straight to the nut sack.

ken_shoryuken_fierce.gif

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It's shocking that a politician actually gets it.

It's hard to get the full details on this one.. that's why I didn't mention it earlier... but looks like some other MPs might be p1ssed with landlords too. Her London rental perhaps - given she's from North West in Saddleworth..? Looks like she had to take a loan to get her finances sorted, having initially leaned on her parliamentary credit card.

In a statement, she added: “The amount outstanding to IPSA prior to the General Election was for a tenancy deposit loan, which a previous landlord had refused to return to me.

http://www.manchestereveningnews.co.uk/news/greater-manchester-news/credit-card-danczuk-abrahams-suspended-9576350

Lol at frankie mcgill's top rated comment in the DM article.

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Of the £53 billion that Lloyds has lent to landlords, the bank said that £48 billion was on an interest-only basis. Almost two-thirds of RBS’s £11.6 billion in buy-to-let lending is interest-only.

No wonder Osborne wants rid of his banking stock pronto. Those suckers are going down again.

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No wonder Osborne wants rid of his banking stock pronto. Those suckers are going down again.

I don't think so. In most instances they've lent at sub 75% LTV, and after repo'ing the BTL property they will be able to go after the Landlords own home for any shortfall. These are unregulated mortgages so the wolves in the recoveries department will be unshackled. The FCA and BoE won't get involved.

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State Banks Prime The Buy-To-Let Timebomb

That's a fascinating headline for an article which essentially just talks about RBS and Lloyds lending more money for BTL.

It looks like BTL is rapidly becoming public enemy number one, and the press are climbing aboard.

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It's going to get very interesting. however can the banking system survive a housing market correction? It very nearly went under when Lehmans blew and the US housing market tanked. If the UK housing market had collapsed then I doubt the banks would have been saved, can the UK banks survive a correction now or will the Tories the party of small government end up having to nationalise the entire UK banking sector in a housing market firesale as those recently bought BTL suddenly hit the market?

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If I remember right the banking system has been tested against a drop in value of one third late last year. And only coop failed the test.

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I wonder if some BTL'rs will run into the problem where a sale will trigger a CGT charge but they have already spent the money.

This happened to one of my relatives. They were ill and used the money for private healthcare.

=> Stuffed.

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If I remember right the banking system has been tested against a drop in value of one third late last year. And only coop failed the test.

and as Exiled Canadian says they will come after your home. We see loads of figures on here about how much equity sloshing around in the nearly paid off thought I would get myself a BTL brigade 45-60ish.

And they will. My cousin had three flats he developed as supposedly BTL's all went south and he was 30 mins from his home being repossessed. Just got out from under because of mistake in paperwork. Lived to fight another day and sold as quick as he could.

He is also an IFA and pretty good with small print (alright not that good!!) but you know what I mean

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