Smith Posted October 13, 2022 Share Posted October 13, 2022 https://www.theguardian.com/business/2022/oct/13/uks-13-year-housing-market-boom-to-end-in-2023-surveyors-predict "Increasing rental rates will help landlords when they come to remortgage their properties, but as many as 30% of those with buy-to-let loans are likely to fail their renewal test, according to a report by credit rating agency Moody’s on Wednesday. In order to refinance, buy-to-let mortgage holders have to meet affordability criteria, based on a minimum interest coverage ratio (ICR), that soaring interest rates makes more difficult to meet. “A 4% increase in interest rates by the end of 2023 would push 30% of buy-to-let loans below their minimum ICR requirement,” said Carmen Brunetti Llavona, analyst at Moody’s Investor Services." Quote Link to comment Share on other sites More sharing options...
Horseradish Posted October 13, 2022 Share Posted October 13, 2022 If the government were smart they'd let BTL get liquidated to allow more people on to the ladder as they always want more actual homeowners, who are more likely to vote for the Tories. Quote Link to comment Share on other sites More sharing options...
Smith Posted October 13, 2022 Author Share Posted October 13, 2022 This government is far from smart! But they may get that outcome anyway. Quote Link to comment Share on other sites More sharing options...
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