Boe Trying To Kill Btl?

[The Knimbies who say No]

The rapid hiking of cover ratios by various lenders, which is in rapid progress right now, has already baked plenty of greater fools. Some might not appreciate it until the teaser fix runs out, but the die is cast.

[Ah-so]

My guess is that there is no agreed view on btl at the BOE. this is pretty much as you would see with any section of the population. However it did come out with a good consultation paper on btl underwriting standards recently.

It read to me that the authors totally understood the problem of btl. I suspect they would rather have gone further but were held up by higher powers.

[ZeroSumGame]

They're just singing up to all sides. Let the BTLers go into it to very last moment. They'll be happy with that.

..Sir Jon Cunliffe: Of course, you also need to estimate whether, if a number of buy-to-let landlords with mortgages exit the market and the flow of new buy-to-let mortgages goes down because of the extra stamp duty, that means more first-time buyers coming into the market because there is a slowing in house-price growth.

This is the crux of the matter.

Gidiot wants a flow of homes coming on to the market in 2019 so that a new tranche of say 500K young people will vote Tory in 2020. Personally I think this will easily be achieved.

[Gribble]

Carney works for the Goldman Sachs mafia - they have vested interests in staying like all the financier scum.

[pig]

Why? Because of core-voters maybe? Savers have already been thrown under the bus, then rolled over again during QE and reflation.

When banks are ready, and Carney has been overseeing this, (everyone blind to the stress tests?) I suggest HPIers will be thrown under another.

I suggest you may underestimate the gains from HPC to the wider economy.

There are parents who own who want hpc for their own children's prospects - not those who have got a view of it only being HPI and BOMADs to be homeowners, and tell you to prepare to be a renter forever (seemingly now reversing entirely away from that, claiming moves against BTLers great for FTBs).

We've got the Sceppy positions... sigh. Against long-wave HPI and BTL speculators, and all views from others, who had HPI long wave ride, that young people better get used to be rent-forevers with no chance of homeownership. Take young renter-savers savings to protect the ponzi house price bubble. No way. HPC it. An ego-HPC for many, with no harm other than to their riddled messed up HPI identities. Needs to happen.

I think BtL is being thrown under the bus by the BoE to avoid a crash..

On the politics side I'd agree there's definitely rapidly decreasing votes for hpi. Pretty baffling then that the government p1ssing against the wind and trying to consolidate hpi.

While therefore BoE and government are therefore currently aligned, if push comes to shove for the reasons you've outlined I can see the BoE happy to sacrifice HPI.

[jamie77]

I don't think further SDLT rises are a good idea, as it will reduce liquidity in the housing market even further by incentivising BTLers to cling on to what they have got instead of selling up with the possibility of buying in again later. If applied across the board it will discourage downsizing etc.

I think a monthly license fee or council tax type payment payable by landlords is a better option than changes to tax relief on mortgage interest. It would apply to all landlords and be adjustable annually and locally.

[dgul]

I don't think we'll see more hits to BTL any time soon, beyond those which are being baked in. At least nothing before 2021

I'd say the likelihood is more that if there was any significant hit to prices they'd introduce supportive measures for OO.

[spyguy]

I don't think we'll see more hits to BTL any time soon, beyond those which are being baked in. At least nothing before 2021

I'd say the likelihood is more that if there was any significant hit to prices they'd introduce supportive measures for OO.

Really? Budget deficit of 6%, current account 7%

The government needs money!

[pig]

I don't think we'll see more hits to BTL any time soon, beyond those which are being baked in. At least nothing before 2021

I'd say the likelihood is more that if there was any significant hit to prices they'd introduce supportive measures for OO.

Sorry but the repeated in inference from the BoE is that BtL is a risk to the economy and GO has provided a political rationale. Agree that OO are most likely to be protected, then again there's only so much you can do.

[Sancho Panza]

I disagree. I think the forthcoming tax changes will absolutely cripple demand for BTL in it's current guise.

Apply the realities of reducing tax deduction for mortgage interest to the kind of BTL mentality evidenced here http://www.property118.com/interest-only-vs-repayment-mortgages/ and you can see what an almighty kick has been delivered to BTL's balls,

Bad news for BTL landlords, but very good news for first time buyers and commercial operators such as this http://thestudenthousingcompany.com

What's more the really uplifting message from that article is that if I'm wrong, and "rampant demand for buy-to-let investments" doesn't cool, then "policymakers could take further action". How wonderful is that! So if by some slim chance this kick in the balls doesn't work, then the government will swing their size 12 Doc Marten back and take aim for another mighty blow!

From the 118 link.It's funny how they're business men when they take the loan and not business men when suing the West Brom...or am I missing something?

'A common question from new Landlords is why are so many BuytoLet mortgages taken out on an Interest only basis rather than Capital and Repayment.

First of all it helps to understand that a Buy to Let mortgage seems very similar to a residential mortgage, but it is not regulated in the same way by the Financial Conduct Authority FCA (the FCA has now replaced the FSA). This is because it is treated as a commercial loan, and investors are assumed to have a greater understanding of the commitments they are entering into than someone who may have no financial understanding buying their own main residence. The key is that a Buy to Let is seen by regulators as a business loan and Buy to Let investors should treat their property purchases using a mortgage as a business themselves.

[geezer466]

Telegraph is a vested interest, has wide interests in local newspapers who rely heavily on estate agent advertising.....

Treat with a large pinch of salt.

The economic factors will always have a part to play..... Once inflation stalls as it must do interest in the idea will go through the floor.

[spyguy]

Telegraph is a vested interest, has wide interests in local newspapers who rely heavily on estate agent advertising.....

Treat with a large pinch of salt.

The economic factors will always have a part to play..... Once inflation stalls as it must do interest in the idea will go through the floor.

The Telegraph is dumb as a box of dead frogs at the moment.

It used to be a OK, if a bit fusty and staid. NOw its the Wail without much in the way of bikini clad starlet boobs.