interestrateripoff Posted December 10, 2015 Share Posted December 10, 2015 http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/12043703/Global-regulators-join-crackdown-on-buy-to-let.html Buy-to-let loans are set to get more expensive under global plans to crack down on the sector, amid fears of an unsustainable boom in the market. Global officials at the Basel Committee, which sets financial standards for the whole world, want banks to hold twice as much capital against mortgages when the repayments are dependent on income from tenants, joining the Bank of England and the Treasury in warning of growing risks in the sector. That is because such loans will only be repaid when the property is occupied and the landlord may struggle if tenants cannot be found. It comes after Chancellor George Osborne announced another new tax on landlords, increasing stamp duty on the purchase of second homes and investment properties. It's like BTL have suddenly become public enemy number 1. Even the big bankers don't want them on their books. But I'm sure BTL landlords have a job to cover the loans.... Quote Link to comment Share on other sites More sharing options...
olde guto Posted December 10, 2015 Share Posted December 10, 2015 http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/12043703/Global-regulators-join-crackdown-on-buy-to-let.html It's like BTL have suddenly become public enemy number 1. Even the big bankers don't want them on their books. But I'm sure BTL landlords have a job to cover the loans.... I'm just waiting for the DM to pick-up this story. Mind you I suspect it'll be the usual "foreign scum tell Brits they can't have BTL" type headline. Quote Link to comment Share on other sites More sharing options...
maffo in oxford Posted December 10, 2015 Share Posted December 10, 2015 Banks have been happy enough to provide BTL mortgage finance to the extent that it made up 80% of net lending. Agree with the above! Quote Link to comment Share on other sites More sharing options...
happyrichie Posted December 11, 2015 Share Posted December 11, 2015 so if a bank net lending was 80% buy2let then the capital requirement would be around a ratio of 15-1. I have never seen a bank keep such a ratio in my life time and how are they gona raise that capital without interest rates going through the roof? Quote Link to comment Share on other sites More sharing options...
spyguy Posted December 11, 2015 Share Posted December 11, 2015 so if a bank net lending was 80% buy2let then the capital requirement would be around a ratio of 15-1. I have never seen a bank keep such a ratio in my life time and how are they gona raise that capital without interest rates going through the roof? They are not. There's a chunk few percetage points that are going to be put onto all BTL loans. The changes have been in the pipeline for a good few year. Its a relative clean tidy up, I mena, FFS, what loon could classify BTL and OO as residential lending. But still the banks have piled into BTL lending. When I say piled, I just mean carried on with it. Just greed and stupidity bt the banks. Again, a couple are going to be thrown under the bus with these changes. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted December 11, 2015 Share Posted December 11, 2015 I'll believe it when I see it. Most people I know into BTl just say they will fix the mortgage again when it runs out, would love to see them not be able to switch mortgages and have their interest rate doubled. I reckon this whole Btl thing is a MASSIVE ticking time bomb..... The greed of the banks and the idiot btl brigade is simply staggering --- Rents and prices are just SO ludicrous --- it's incredible how things were allowed to get to this point...... THERE IS ONE GOLDEN RULE -- THE MEASURE OF REALITY -- 3 X INCOME. 3X INCOME. 3 X INCOME. 3 x INCOME. What is it now??!?!!?? 14 x income??!?!?!? F***ING INSANE. Quote Link to comment Share on other sites More sharing options...
Byron Posted December 11, 2015 Share Posted December 11, 2015 But, but, but, Ros said that the Telegraph was running a campaign to get rid of the BTL tax. That nice Mr Dyson is in charge. Quote Link to comment Share on other sites More sharing options...
Neverwhere Posted December 11, 2015 Share Posted December 11, 2015 But, but, but, Ros said that the Telegraph was running a campaign to get rid of the BTL tax. That nice Mr Dyson is in charge. They appear to be distinctly nonplussed. As far as I can tell the full extent of the coverage of both this article and the underlying consultation paper on Property118 at present is: Saeef Khan 11/12/2015 at 09:31 http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/12043703/Global-regulators-join-crackdown-on-buy-to-let.html Charming! Quote Link to comment Share on other sites More sharing options...
Ah-so Posted December 11, 2015 Share Posted December 11, 2015 They appear to be distinctly nonplussed. As far as I can tell the full extent of the coverage of both this article and the underlying consultation paper on Property118 at present is:Ros is examining her Sunday Times Atlas to find our where Basel is.She will then write a long letter to the BIS warning them of the UNINTENDED CONSEQUENCES. Quote Link to comment Share on other sites More sharing options...
Neverwhere Posted December 11, 2015 Share Posted December 11, 2015 Ros is examining her Sunday Times Atlas to find our where Basel is. She will then write a long letter to the BIS warning them of the UNINTENDED CONSEQUENCES. Well they have asked for comments! Maybe if this were more widely publicised and understood in BTL circles the Basel Committee would receive a few submissions that would have the unintended consequence of encouraging them to whack BTL risk weights up further still. Quote Link to comment Share on other sites More sharing options...
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