jan81 Posted November 11, 2015 Share Posted November 11, 2015 http://www.theguardian.com/money/2015/nov/11/buy-to-let-mortgages-cml-lending-landlords-loans Guardian article stating that number of buy to let mortgages still at a high level, even after summer budget. Fascinating really, I would have assumed that the tax changes and general signalling that landlords were coming under increasing scrutiny would be dampening enthusiasm among new entrants. I wonder if these people have thought it through, are not planning on being highly leveraged or if they just haven't taken the changes into account. Quote Link to comment Share on other sites More sharing options...
Guest_growlers_* Posted November 11, 2015 Share Posted November 11, 2015 It's the cml q3 data. I was surprised it hadn't been posted elsewhere. I couldn't work out the increase in BTL. Wondered if it was driven by OO using BTL mortgages fraudulently. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 11, 2015 Share Posted November 11, 2015 Possibly the pension pots that can run to a deposit on a BTL but not to buy outright. The more the merrier, what could possibly go wrong? Quote Link to comment Share on other sites More sharing options...
Starla Posted November 11, 2015 Share Posted November 11, 2015 It's all very Titanic, whether you run for a lifeboat or carry on ordering cocktails at the bar, it's still going to end the same. Different ways of approaching the same inevitable problem. Quote Link to comment Share on other sites More sharing options...
Money Frugality Posted November 11, 2015 Share Posted November 11, 2015 Most wannabe LL asking why I'm not joining the feeding frenzy are still unaware of the new tax laws and some are even thick enough to not know it sends them into higher tax too! More wood for the fire IMO Quote Link to comment Share on other sites More sharing options...
PopGun Posted November 11, 2015 Share Posted November 11, 2015 Oh it's getting better. Plus some old hardcore militant posters are returning in drips and drabs. Reminds me of the old days, just need Paddles and Wad back now. This sh1t is going down.... Quote Link to comment Share on other sites More sharing options...
frederico Posted November 11, 2015 Share Posted November 11, 2015 Bottom line is where else would you put your money. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 11, 2015 Share Posted November 11, 2015 Bottom line is where else would you put your money. That depends on your appetite for risk. Quote Link to comment Share on other sites More sharing options...
man o' the year Posted November 11, 2015 Share Posted November 11, 2015 many of the BTL mortgages are actually not BTL at all. The lending criteria are now preventing people from obtaining the mortgages they covet and BTL is a means to obtain a mortgage with far more relaxed lending criteria, for cash rich self employed for example. This is why the number of BTL mortgages are increasing. Quote Link to comment Share on other sites More sharing options...
Motor_Blade Posted November 11, 2015 Share Posted November 11, 2015 I'd guess the pension changes are driving this & if so a lot of people may have made a decision that they may have cause to regret - the cynic in me wonders if the changes aren't a back door method of raiding pension funds by trading on people's greed. Bit of a coincidence that the pension changes were highlighted well before the BTL tax changes were. Quote Link to comment Share on other sites More sharing options...
olde guto Posted November 11, 2015 Share Posted November 11, 2015 I'd guess the pension changes are driving this & if so a lot of people may have made a decision that they may have cause to regret - the cynic in me wonders if the changes aren't a back door method of raiding pension funds by trading on people's greed. Bit of a coincidence that the pension changes were highlighted well before the BTL tax changes were. This months budget statement will be interesting. One can only hope that this rise in BTL mortgages will inspire Osborne to bring forward the BTL tax reforms hidden by the smokescreen of relenting somewhat on WTC. The smarter speculators will have begun ditching their properties and these late entrant muppets will be like lambs to the slaughter. Quote Link to comment Share on other sites More sharing options...
Si1 Posted November 11, 2015 Share Posted November 11, 2015 This is as unbelievable as the bubble itself Quote Link to comment Share on other sites More sharing options...
long time lurking Posted November 11, 2015 Share Posted November 11, 2015 Oh it's getting better. Plus some old hardcore militant posters are returning in drips and drabs. Reminds me of the old days, just need Paddles and Wad back now. This sh1t is going down.... Din`t paddles go to oz Quote Link to comment Share on other sites More sharing options...
long time lurking Posted November 11, 2015 Share Posted November 11, 2015 This months budget statement will be interesting. One can only hope that this rise in BTL mortgages will inspire Osborne to bring forward the BTL tax reforms hidden by the smokescreen of relenting somewhat on WTC. The smarter speculators will have begun ditching their properties and these late entrant muppets will be like lambs to the slaughter. I think it will be the BOE that twist the knife Georgeie boy was quite clear he wants to give the BOE more powers to control the BTL mortgage market as soon as possible i think he may well of been aware of these figures Quote Link to comment Share on other sites More sharing options...
Guest_growlers_* Posted November 11, 2015 Share Posted November 11, 2015 many of the BTL mortgages are actually not BTL at all. The lending criteria are now preventing people from obtaining the mortgages they covet and BTL is a means to obtain a mortgage with far more relaxed lending criteria, for cash rich self employed for example. This is why the number of BTL mortgages are increasing. I agree with this. Especially in London. Deposit and 125% mortgage cover is all that is required. Quote Link to comment Share on other sites More sharing options...
Exiled Canadian Posted November 11, 2015 Share Posted November 11, 2015 (edited) I agree with this. Especially in London. Deposit and 125% mortgage cover is all that is required. I've talked to a number of people who are themselves renting but also have a BTL property. I guess it makes sense given the differing lending criteria for OO and BTL mortgages....but surely set of policies that produces this as the "right" answer has just got to be wrong. Edited November 11, 2015 by Exiled Canadian Quote Link to comment Share on other sites More sharing options...
Guest_growlers_* Posted November 11, 2015 Share Posted November 11, 2015 (edited) http://www.bloomberg.com/news/articles/2014-07-02/u-k-mortgage-seekers-exploit-loophole-to-avoid-new-credit-check Old article from 2014. I suspect the parents are involved too - so yes the pension freedoms are probably related. Parents cash in pension. Buy a Buy to Let and rent it to one of their children who would otherwise be priced out. http://www.housepricecrash.co.uk/forum/index.php?/topic/199515-liar-loan-btl-mortgage-fraud-starting-to-reach-msm/?p=1102543082 Edited November 11, 2015 by growlers Quote Link to comment Share on other sites More sharing options...
65243 Posted November 11, 2015 Share Posted November 11, 2015 (edited) http://www.theguardian.com/money/2015/nov/11/buy-to-let-mortgages-cml-lending-landlords-loans Guardian article stating that number of buy to let mortgages still at a high level, even after summer budget. Fascinating really, I would have assumed that the tax changes and general signalling that landlords were coming under increasing scrutiny would be dampening enthusiasm among new entrants. I wonder if these people have thought it through, are not planning on being highly leveraged or if they just haven't taken the changes into account. Deleted, as the post made no sense after the automatic censorship. Edited November 11, 2015 by 65243 Quote Link to comment Share on other sites More sharing options...
spyguy Posted November 12, 2015 Share Posted November 12, 2015 http://www.bloomberg.com/news/articles/2014-07-02/u-k-mortgage-seekers-exploit-loophole-to-avoid-new-credit-check Old article from 2014. I suspect the parents are involved too - so yes the pension freedoms are probably related. Parents cash in pension. Buy a Buy to Let and rent it to one of their children who would otherwise be priced out. http://www.housepricecrash.co.uk/forum/index.php?/topic/199515-liar-loan-btl-mortgage-fraud-starting-to-reach-msm/?p=1102543082 These's new. I've heard of a couple of these over the last year or two. I think this is going to be the 20/month personal pension from the 80s cashing in well sub-100k pensions and leveraging up. With the current low yield, BTL rent offset changes and the hidden costs (voids, bad tenants) this will be a disaster for the people involved. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted November 12, 2015 Share Posted November 12, 2015 The higher the percentage of new mortgages going to BTL investors, the better. It means that the government can allow prices to correct without hurting so many hard working families (voters). Yes, BTL investors have votes too, but only one divided by the number of houses they "own". Quote Link to comment Share on other sites More sharing options...
Ah-so Posted November 12, 2015 Share Posted November 12, 2015 The higher the percentage of new mortgages going to BTL investors, the better. It means that the government can allow prices to correct without hurting so many hard working families (voters). Yes, BTL investors have votes too, but only one divided by the number of houses they "own".The more the speculative investment in property, the more likely we are too have a sharp correction. The Bank and government will not want this. Quote Link to comment Share on other sites More sharing options...
Ah-so Posted November 12, 2015 Share Posted November 12, 2015 many of the BTL mortgages are actually not BTL at all. The lending criteria are now preventing people from obtaining the mortgages they covet and BTL is a means to obtain a mortgage with far more relaxed lending criteria, for cash rich self employed for example. This is why the number of BTL mortgages are increasing.I believe that most of the lenders have rules about this. The most common is that you cannot bit one unless you already own your own property. On the other side, something like 5% of residential mortgages are believed to be secret BTL properties. Quote Link to comment Share on other sites More sharing options...
Si1 Posted November 12, 2015 Share Posted November 12, 2015 The more the speculative investment in property, the more likely we are too have a sharp correction. The Bank and government will not want this. I do wonder how much the release of people's pensions was to allow then to be transferred into property for whatever reason Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted November 12, 2015 Share Posted November 12, 2015 many of the BTL mortgages are actually not BTL at all. The lending criteria are now preventing people from obtaining the mortgages they covet and BTL is a means to obtain a mortgage with far more relaxed lending criteria, for cash rich self employed for example. This is why the number of BTL mortgages are increasing. Quote Link to comment Share on other sites More sharing options...
renting til I die Posted November 12, 2015 Share Posted November 12, 2015 I do wonder how much the release of people's pensions was to allow then to be transferred into property for whatever reason Quite right. We can't overlook the bank of mum and dad! Quote Link to comment Share on other sites More sharing options...
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