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jiltedjen

Boe Acting On Btl

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Mr Bulger (impartial expert on property) says that BTL doesn't need repayment mortgages because the repayment vehicle is to sell the property.

Would this imply that BTL is a debt fuelled gamble on rising prices and unfair tax relief of mortgage interest?

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No more IO BTL.

LTV max of 50%

Same stress tests as residential.

Higher capital charge on 'investor' mortgages i.e. preempt Basel 3.

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Al JaBeeba

The Bank of England reveals its findings on lending standards in the buy-to-let market later this morning - it thinks they might not be as stringent as they could be. We could also get news of new regulations for the sector, which governor Mark Carney has said could pose one of the greatest risks to UK financial stability.

Ray Boulger of Charcoal mortgage brokers tells Today, he expects the Bank will either require banks to apply "stricter stress tests in the rental cover calculation" and require the banks to assume a 3% rise in interest rates or restrict the amount of buy-to-let lending the banks do.

In practice that might mean that banks would have to limit their buy-to-let lending portfolio to around 15% or 20% of their overall lending book, he says.

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No more IO BTL.

Please, let it be so !!!

I know one BTL chap, I reported a while back on this, who has IO BTLs and is living off the rents.

When asked, what is he going to do when the banks ask for their money back and he replied....re-mortgage.

I've pretty much stopped talking to anyone with any connection to property now....i.e. everyone :lol:

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Why, after all this time, is this announcement coming less than 72 hours before the new tax effects kick in?

US must be ready to raise rates after all.

Something must be going on, somewhere.

The Tories and the BoE would not willing crash house prices IMHO

Edited by TheCountOfNowhere

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Why, after all this time, is this announcement coming less than 72 hours before the new tax effects kick in?

Because they'll all have exchanged contracts by now on the purchases they've fast tracked to complete before 6th April.

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Please, let it be so !!!

I know one BTL chap, I reported a while back on this, who has IO BTLs and is living off the rents.

When asked, what is he going to do when the banks ask for their money back and he replied....re-mortgage.

I've pretty much stopped talking to anyone with any connection to property now....i.e. everyone :lol:

:lol:

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I would have thought the bankrupt of england should have considered the distortive effects of their market manipulation the best part of 15 years ago.

Before the bank runs and bailouts.

Now they are supposedly waking up to the disastrous effects of rentier banking.

When will they have even the slightest clue of the damage they have caused to the rest fo the economy through their actions.

Long after all the shysters have retired on fat payouts no doubt.

Edited by onlyme2

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125% rent to mortgage cover at 5% rate on loan.

Not exactly earth shattering.

I see that they want the mortgage company to take into account the borrowers tax implications. Might put a halt to releasing equity that leaves you short of your capital gain liability

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125% rent to mortgage cover at 5% rate on loan.

Not exactly earth shattering.

I see that they want the mortgage company to take into account the borrowers tax implications. Might put a halt to releasing equity that leaves you short of your capital gain liability

Sure will. For those with an existing CGT problem, they may well find it hard (impossible?) to remortgage.

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