Jump to content
House Price Crash Forum
Sign in to follow this  
Deft

Won't Anyone Think Of The Poor Btl Dreamers

Recommended Posts

Why isn’t everybody doing it? Plenty are, but you also need quite a lot of money to start with, for the deposit. Once you’re in, though, buy-to-let mortgages drive house prices up, which in turn means more people can’t afford to buy and have to rent, which drives up rent prices, which makes buying to let even more attractive.

Magic! So they’re dividing Britons back into landed aristocrats and serfs? Basically.

What’s the problem? The serfs don’t like it.

:lol:

They don't seem to realise that the majority of buy-to-let is interest only rather than repayment but, other than that, brilliant!

Share this post


Link to post
Share on other sites

What’s the problem? The serfs don’t like it.

Bloody serfs. But things might even get tricky for the aristocrats if rents fall or interest rates rise because then some won’t be able to keep up the repayments, which means everything gets repossessed by the bank. And if house prices fall too, the bank may not get all its money back, which means it might not be able to pay its debts to other banks, which means they don’t have as much money as they thought either, and all their market values collapse.

Clearly the serfs should be made to take on more debt to make the repayments.....

Share this post


Link to post
Share on other sites

The amazing thing is that they don't have to lie! (Though plenty of speculation funded with fraudulent mortgages, I'm sure, as a handful of egregious cases whch have seen the light of day in the courts indicates).

Share this post


Link to post
Share on other sites

And yet they take none. Just the usual "we're watching" horse shit.

One thing that is worth bearing in mind is that if you the passage of events from 2009 to 2014 on owner-occupier mortgages what you got was an original piece of work leading to proposals for new rules in about 2011, IIRC. At this stage there was some lobbying by the lenders, and some politicians joining in, but then the lenders just changed their lending practices, moving them into line with the proposals - this occurred during 2012. Then in April 2014 when MMR was implemented the impact of the changes was fairly minimal because the banks had already backed out of interest-only at high-LTV and self-certified lending.

With BTL they only appear to have been really getting stuck into the numbers of the last couple of years. Other posters have made the point, but it's worth making again. You may be absolutely right, the Bank may be doing nothing and have no intention of doing anything, but it is also possible that this is the final warning shot across the retail banking sectors' bows; stop or be stopped.

Share this post


Link to post
Share on other sites

I don't read the Guardian, so maybe someone who does can answer this: did they ever have a go at the evils of buy to let when it was roaring ahead under New Labour?

Or is it only A Very Bad Thing when the Tories are in power?

Share this post


Link to post
Share on other sites

I don't read the Guardian, so maybe someone who does can answer this: did they ever have a go at the evils of buy to let when it was roaring ahead under New Labour?

Or is it only A Very Bad Thing when the Tories are in power?

It is when the voter demographics are starting to shift. If Osbourne really cared he wouldn't of introduced Help to Bail the Banks Buy and impoverished people more. Check these quotes out and make your own judgement:

Osbourne, 2010 Budget:

"A sustainable private sector recovery built on a new model of economic growth, instead of pumping the debt bubble back up"

Osbourne, 2013 Budget:

"Help to Buy is a dramatic intervention to get our housing market moving: For newly built housing, Government will put up a fifth of the cost. And for anyone who can afford a mortgage but can’t afford a big deposit, our Mortgage Guarantee will help you buy your own home. That is a good use of this Government’s fiscal credibility"

Osbourne, 2015 Autumn Statement:

"Londoners with a 5% deposit will be able to get an interest-free loan worth up to 40% of the value of a newly-built home"

Edited by Assume The Opposite

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   93 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.