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If They Can’t Pay The Mortgage …

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If they can’t pay the Mortgage …

There is no doubt that repossessions are on the increase again. This has been speculated and anticipated for a some time and is it of any wonder with the carefree and negligent lending criteria of all the big money lenders over recent years.

Yet I read again lately with distaste, that these very same banks and building societies are still looking at even more new and innovative ways to lure potential ‘Buy to letters’ into an already over crowded saturated and stagnant market.

In one breath they entice ‘First time buyers’ by saying that renting is dead money and that it often costs more monthly to pay rent than it does to pay a mortgage. They also encourage existing home owners to take on more debt by equity release.

Then when these people fall behind on their mortgage payments because they simply can’t afford to pay, they claw back the property by booting them out, passing on the potential of buying to a ‘Buy to letter’ who then hopes to rent it out at far more than the mortgage costs monthly….?!!….but who do they rent it out to?

It goes with out saying that if repossessions are on the increase then so are tenant evictions, be it council, social or private. If people can’t afford to meet their mortgage arrears then they can’t afford to pay the rent.

However when it comes to evicting a private tenant for non-payment of rent, many would be landlords are learning fast that this hasn’t been the get rich scheme they where promised or indeed envisioned. The only thing worse than not being able to lease your property (you only need to pick up a paper or go for a drive and see the boards up to see the evidence) and that is having your property leased but not receiving any rent for it.

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BTLers are great from the banks point of view. Usually they have massive equity in their own homes so even if the deposit is small the lending is virtually risk free from the banks point of view. Of course there is a massive risk if you are a btler but that's your problem, not their's!

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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