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Jump in landlords facing serious mortgage arrears


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1 hour ago, Diver Dan said:

Your home is at risk of you fail to keep up payments secured against it.

The value of your investment may fall as well as rise, past performance is not a guarantee of future success.

When the tide goes out you see who has been swimming naked.

Etc. Etc.

except its not their home, its some other poor b*stards

the DEBT though is entirely theirs

hope these cretins burn

 

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20 minutes ago, thewig said:

except its not their home, its some other poor b*stards

the DEBT though is entirely theirs

hope these cretins burn

 

I take your point.

However, I'm willing to bet it"a mostly the "wing and a prayer" non-incorporated accidental/amateur landlords who are struggling most. If their BTL empire goes down, there's a real chance their main house will go with it.

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32 minutes ago, Diver Dan said:

I take your point.

However, I'm willing to bet it"a mostly the "wing and a prayer" non-incorporated accidental/amateur landlords who are struggling most. If their BTL empire goes down, there's a real chance their main house will go with it.

A common theme maongst the ones I've spoken to over the years is that they are blissfully unaware they cpuld lose their own home if there's no equity in their BTL's.

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Of course there would not be a problem if landlords were not so dependent on reliable (increasing) rents paid on time......they depend on peoples earnings and the reliability of those earnings.......the mortgage has to be paid every month.....can't stand the heat, stay out of the kitchen......no buffer no way.;)

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"    David Cox agreed. "Rents will inevitably have to go up," he told the BBC. "

Oh, really?

And where exactly are these MagicalTenants that will Magic Up the Increased rent for you all?

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3 minutes ago, Thorn said:

"    David Cox agreed. "Rents will inevitably have to go up," he told the BBC. "

Oh, really?

And where exactly are these MagicalTenants that will Magic Up the Increased rent for you all?

Really? No other outcome is conceivable ...

 

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1 minute ago, spyguy said:

Really? No other outcome is conceivable ...

 

'course there is.

We could have a whip'round for them.

What would we all like to add and I will organise a delivery container like on Blue Peter.

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6 minutes ago, Thorn said:

"    David Cox agreed. "Rents will inevitably have to go up," he told the BBC. "

Oh, really?

And where exactly are these MagicalTenants that will Magic Up the Increased rent for you all?

It's OK. The "Axe the Tenant Tax" lot gave recently discovered that they can't raise rents... They're focusing on homelessness now. What they don't understand is that for every homeless tenant, there's a landlord trying to shift an empty, overpriced house and being crucified by mortgage payments.

If the increase in homelessness Is indeed due to things like Section 24, the spike should be temporary as these properties are sold for more realistic values or repossessed...

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Brehon laws in Ireland a long time ago were all about making people make up for their bad deeds.

If you killed a man, you had to be the slave to feed his family for the rest of your life, apparently.

Wonder what they would suggest for BTL Landlords who evict families on a whim because it's legal.

 

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They quote in the article that serious arrears is classed as being behind in payments by 10% of the outstanding mortgage. 

How many months behind would that be ? About 30 years ago just before the start of the 80's crash I worked for a short time in a Building society now a bank and serious arrears was classed as being 4 or more months behind on payments. 

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10 minutes ago, Thorn said:

"    David Cox agreed. "Rents will inevitably have to go up," he told the BBC. "

Oh, really?

And where exactly are these MagicalTenants that will Magic Up the Increased rent for you all?

Can't they label a spade a spade and state that" inevitably, this shows that btl is not economically viable". Do people really believe someone with vested interests?

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I wonder if the payment of housing benefit direct to tenants has anything to do  with this. Money not making it to landlords who're already on tight margins, what do they get behind on, the house they live in, the Audi or the BTL? Less than a year until they actually have to pay their tax from S28 as well. 

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David Cox of ARLA in the BBC piece:

Quote

"Landlords are facing burden after burden placed on them by the government, which is significantly increasing financial compliance requirements," said David Cox, chief executive of the Association of Residential Landlords (Arla) Propertymark.

"This is, in turn, causing landlords to fall into financial difficulties."

WTF are "financial compliance requirements"? Cox is talking b0llocks. The first tax cheques for Section 24 aren't due till  January 2019 (section 24 tapering will be only 25% for the current tax year) and buy-to-let mortgage rates have fallen to incredibly low levels.

I can't see what the government has to do with this.

It's a bit early for even leading edge of the consequences of portfolio landlord lending rules (PRA SS13/16); the rules went into force in October 2017. If you went from a 2%-ish fixed rate deal to a 5%-ish SVR that is not going to put you into significant arrears in four months; the lending would have been written so that it washed its face at the SVR.

Seems more likely to me that this is showing that an increasing number of households facing a continuing squeeze on incomes have tapped out their supply of credit and are failing to make the rent. Obviously if landlords chose to finance in a way that meant that lower rents blew up their investment that was stupid of them, but nobody made them take out their daft leveraged bet. I certainly don't recall the government forcing anybody to take a punt on a buy-to-let.

 

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1 minute ago, Tulip_mania said:

I wonder if the payment of housing benefit direct to tenants has anything to do  with this. Money not making it to landlords who're already on tight margins, what do they get behind on, the house they live in, the Audi or the BTL? Less than a year until they actually have to pay their tax from S28 as well. 

Good call. May well be a factor for some landlords.

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