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

[Ft] Buy-To-Let: Is Mark Carney About To Take Action?

Recommended Posts

http://www.ft.com/cms/s/0/0a779ad4-c37d-11e5-808f-8231cd71622e.html#axzz3yNBedayb

Excerpted:

According to BoE figures, buy-to-let lending was at 14.5 per cent of gross new mortgage lending in the third quarter of 2015, up from 8.8 per cent in the same period of 2007.

The BoE warned in its December financial stability report that its Financial Policy Committee “stands ready to take action if necessary” on buy-to-let lending.

Edited by moderator

Share this post


Link to post
Share on other sites

FT'S lawyers don't like us quoting more than a sentence.

Best to trim the quote (or MODS?)

Reasonably positive story tho :)

Share this post


Link to post
Share on other sites

HoC Treasury Select Committee today, (Mark Carney Alex Brazier, Dame Clara Furse DBE, Martin Taylor)

Commencing at 12.08pm there were questions about BTL and whether the fact that BTLers could get IO mortgages, whereas FTBers could only obtain repayment mortgages, skewed the market against OOs.

The answer from Martin Taylor (External Member, Financial Policy Committee, Bank of England) was that the BoE were aware of this problem and it was something the BoE was watching, but they were waiting to see the effects of the current changes they had introduced to BTL. Itwas pointed out that one thing in the favour of OO was that BTL had to provide a larger deposit.

Personally, I thought that BTL was under the spotlight after Carney's response (I think it was his) to a question about the flood of money into BTL mortgages and the proportion they now made of total new mortgages.

Share this post


Link to post
Share on other sites

Lets look at some of the other things this "man" has said:

http://www.telegraph.co.uk/finance/economics/10985991/Mark-Carney-rates-must-rise-to-avoid-housing-bubble.html

Mark Carney: rates must rise to avoid housing bubble

http://www.bbc.co.uk/news/business-24060130

Carney to be 'vigilant' on house prices

http://www.theguardian.com/business/2014/feb/12/inflation-report-mark-carney-to-revise-forward-guidance-business-live

Bank of England rewrites forward guidance, signalling no rate rise until 2015

http://www.telegraph.co.uk/finance/bank-of-england/10633094/Why-Carney-tweaked-forward-guidance-in-three-graphs.html

Back in August, when he introduced the guidance, the Bank did not expect unemployment to dip below 7pc for three years, but just six months later the rate had fallen to 7.1pc.

Now we get:

http://www.ft.com/cms/s/0/0a779ad4-c37d-11e5-808f-8231cd71622e.html

"Buy-to-let: is Mark Carney about to take action?"

Like F**K he is (IMHO)

Edited by TheCountOfNowhere

Share this post


Link to post
Share on other sites

Whoever wrote that is a grade a pr*ck

Great contribution!

If its on the front page with such a strong headline, TPTB clearly want the sheeple to be thinking bad things about BTL. Preparation for further action?

Never seen headlines saying carney thinks interest rates are a threat.

Share this post


Link to post
Share on other sites

Carney == puppet. Goldman through and through. He'll do what he can to protect private bank interests and nothing else. The question is what do the private banks want to happen in relation to BTL at the moment?

All they care about is a continous income stream, and IO mortgages in perpetuity is way better than repayment - btl or owner occupier - from their perspective. Hence we've seen no action. So really, it's down to the worldwide banking commision and to an extent, the government laws to set out and direct future policy. And on that score, than f**k for Basel III and George Osborne.

Share this post


Link to post
Share on other sites

Vigilantly doing nothing.

MMR, taking mortgage lending out of calculation of new lending for the purposes of access to FLS, soft-cap on LTIs for owner-occupiers, ring-fencing retail banking, increased capital requirements, role as G20 central banker in work of BCBS including work on standardized approach to credit risk, determinedly seeking powers of direction over buy-to-let lending, PRA review of BTL underwriting.

Carney's Bank of England has done more in his two and a half years at the helm than his predecessors at the the old tripartite regime institutions did in a the entirety of the pointless existence of those chocolate tea-pot regulators. In fact the only thing the predecessors did was raise rates, and unless nobody noticed that seemed to largely have the opposite of the desired effect as it channelled a shit ton of hot money from all over the world into UK liar loans and high-LTV interest-only BTL.

funding%2Bfsa%2B2009.png

If people want rate rises from the central bank as evidence of doing something then they've really misunderstood the consequences of deflation for a crummy economy like ours, labouring under a monumental burden of both public and private debt.

Excessive cynicism is just another kind of ramping.

Share this post


Link to post
Share on other sites

Apologies for quoting too much of the article in the OP. One of the most interesting points it made was that according to polling commissioned by the Bank, 15% of BTL investors would sell up if the rental income no longer exceeded their mortgage payments, and a further 45% would sell if house prices fell by 10% or more. Given the quantity of housing they control, that'd be a massive sell-off into the teeth of a downturn.

Share this post


Link to post
Share on other sites

Apologies for quoting too much of the article in the OP. One of the most interesting points it made was that according to polling commissioned by the Bank, 15% of BTL investors would sell up if the rental income no longer exceeded their mortgage payments, and a further 45% would sell if house prices fell by 10% or more. Given the quantity of housing they control, that'd be a massive sell-off into the teeth of a downturn.

And all the proof you need that it`s an investment and not a business ,,a bet on HPI

Share this post


Link to post
Share on other sites

This was the front page of evening standard tonight.

http://www.standard.co.uk/news/uk/bank-boss-alarm-at-buy-to-let-housing-boom-a3165351.html

Owning the narrative about curbing BTL. Makes me optimistic something is coming.

This was the front page of evening standard tonight.

http://www.standard.co.uk/news/uk/bank-boss-alarm-at-buy-to-let-housing-boom-a3165351.html

Owning the narrative about curbing BTL. Makes me optimistic something is coming.

There is something coming - the London Mayoral election on 7 May.

Zac Goldsmith is behind in the polls and they need to win over those young professional renters to win. Hence the Standard pushing the we are going to sort out BTL line - as if!

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.

  • The Prime Minister stated that there were three Brexit options available to the UK:   47 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    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.