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Desperate Attempts By Btl Investors To Refinance

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Got an email from a company looking help invest my monies by lending it to desperate BTL landlords

i say desperate because the interest rate return is so favorable it must be highly risky see below

Dear rubicon

"

xxxxxxxxxxxx is looking for private individuals and institutions to lend against first and second charges of UK Buy-to-let and commercial properties and earn up to 7-12% per year fully secured.

Brief details of what we offer are as follows:

1. Minimum lending £12,000 and £1m maximum.
2. Lending period 1-5 years.
3. Interest rate 7-12% per year, payable monthly.
4. Secured by 1st and 2nd legal charge on UK Buy-to-let and commercial properties with rent assignment.
5. Maximum LTV 75%.

Should you be interested in lending to the UK Buy- to -Let landlords and earn a secure and steady income, please don't hesitate to contact us to discuss how we can take this further.

Yours sincerely,

DETAILS REMOVED BY A MODERATOR

This screams desperation to me or are there a lot of companies trying to get first charge on crashing BTL empires?

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Probably the type of scheme which will end up with Tony Hetherington of Mail on Sunday as a tale of woe where someone has lost their life savings..... :rolleyes:

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I would lend to a BTL at 12%, paid monthly, up to 35% LTV with first (and only) charge over the property and a personal guarantee from the LL too

On condition that rent yield was 5% on the current value of the property

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I would run and run and run away from anything like that, on principle and having read some property-forums where 'investors' found it was not all smiley happy easy money at all, but big financial pain for them. I'm not going to link to any place, because think you should keep far away from any such things, but we make our own market decisions.

For people that borrow money, OPM comes with few risks. Even if someone gets security on a property of theirs, it can take many thousands in legal fees to force the sale of that property or gain possession if it was a first charge. To my mind, second charges are worthless in these instances.

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I would run and run and run away from anything like that, on principle and having read some property-forums where 'investors' found it was not all smiley happy easy money at all, but big financial pain for them. I'm not going to link to any place, because think you should keep far away from any such things, but we make our own market decisions.

It'll be invested in by the same personality type that believes you make your own luck by taking blind leveraged gambles. And when/if it goes pear shaped they'll compare it to the holocaust. Edited by Si1

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Why oh why is BTL described as buy to let when its actually BORROW to let.

Investing is where CAPITAL is used not funds borrowed.

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The sharks are circling the shoals of mackerel while the mackerel dream of being sharks.

Some sort of karma thing is going on here ... good find!

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The sharks are circling the shoals of mackerel while the mackerel write snidey letters to the fishermen.

Some sort of karma thing is going on here ... good find!

:rolleyes:

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I actually disagree that this is "too good to be true" and have some insights into a similar company where I invest in bridging finance paying c.10% pa returns with loan duration between 3 months to 12 months.

Most of the investments are sub 60% LTV with a first charge, so whilst I am massively negative on London property right now, I also think it's unlikely that values will drop by 40% in six months.

Whilst I think prices are overheated, it's a nicely hedged investment for my deposit while I sit on the sidelines. If prices fall by anything less than 40% then I get my 10% return, whereas if they do drop 40% or more, then my dream house will have also fallen hence less deposit required.

When something looks like a no brainer, you definitely need to ask why. In the case of CDOs it was because risk was being mispriced. This bears no resemblance to packaged securities, it's a single investment into a single loan.

The real driver here is regulatory pressure on banks driving a totally risk averse approach to lending, which means you get decent credit opportunities at attractive prices - in a normal market with no government intervention against banks they would have competed these returns down significantly.

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Lend money to keep people like Ros and Mark Alexander afloat? Where do I sign up?

Lend money to keep people like Ros and Mark Alexander afloat? Where do I sign up?

Exactly, I'm willing to chip in, great comedy value.

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I actually disagree that this is "too good to be true" and have some insights into a similar company where I invest in bridging finance paying c.10% pa returns with loan duration between 3 months to 12 months.

Most of the investments are sub 60% LTV with a first charge, so whilst I am massively negative on London property right now, I also think it's unlikely that values will drop by 40% in six months.

Whilst I think prices are overheated, it's a nicely hedged investment for my deposit while I sit on the sidelines. If prices fall by anything less than 40% then I get my 10% return, whereas if they do drop 40% or more, then my dream house will have also fallen hence less deposit required.

When something looks like a no brainer, you definitely need to ask why. In the case of CDOs it was because risk was being mispriced. This bears no resemblance to packaged securities, it's a single investment into a single loan.

The real driver here is regulatory pressure on banks driving a totally risk averse approach to lending, which means you get decent credit opportunities at attractive prices - in a normal market with no government intervention against banks they would have competed these returns down significantly.

PRIVATISED PREDATORY LIAR LOANS?!?

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PRIVATISED PREDATORY LIAR LOANS?!?

:lol:

it seems they have learned nothing from 2007 and this madness will not stop till something seriously collapses in the UK.

I'm fully expecting a UK bank holiday.

if you have long hair, expect a new look.

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Dear Reader,

We are a bunch of City Whizz Kids (Bankers, Lawyers, Accountants, Mortgage Brokers etc.)

We were having a few jars at the local and realised that more and more BTL landlords are in deep doodoo and are having difficulty in refinancing their mortgages.

Of course, most will go tits up but there is a slim opportunity to screw them over at high interest rates.

Problem is, we do not have any money, or more accurately, we do not wish to risk our own cash.

So, would you like to put up the readies? we will lend it to these overstretched idiots at ruinous interest rates and pay you up to 7% pa.

Of course your cash will be safe just as long as these Landlords manage to keep paying.

If the worst comes to the worst, you will lose everything, we shall be OK because we have no skin in the game

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