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SarahBell

Are Landlords Still Buying?

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Will landlords still be buying ... I know the evidence on my street is they're not at the moment but I am worried they're just going to wait til the owners are forced to drop prices a little and then they'll snap in there and buy them. (I think there's two sold near me to landlords in the last week or so but waiting to get it confirmed)

Is credit still available to them? Would a landlord be able to get another mortgage - or will it depend on the state of their business?

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Is credit still available to them? Would a landlord be able to get another mortgage - or will it depend on the state of their business?

I dont think mortgage lending has stopped so cant see any reason why a landlord couldn't get a mortgage to buy an investment property.

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thanks - useful threads.

So I guess if the BTL landlord is a in a good position they may stand still, or continue to buy ... if they're in a bad position they may not be able to buy even if they want to...

So who's most unstable? The bigger landlords who've geared more and so have little equity, and the rents don't cover the repayment mortgage?

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thanks - useful threads.

So I guess if the BTL landlord is a in a good position they may stand still, or continue to buy ... if they're in a bad position they may not be able to buy even if they want to...

So who's most unstable? The bigger landlords who've geared more and so have little equity, and the rents don't cover the repayment mortgage?

There was a thread about a few days ago about leverage and how it can all go horribly wrong when prices start to drop. I'll try to dig it out.

Throw margin calls into the mix and its going to be hell for BTLers. ho hum :rolleyes:

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I dont think mortgage lending has stopped so cant see any reason why a landlord couldn't get a mortgage to buy an investment property.

Because the LTV has been lowered and people are being asked for greater deposits that they haven't got? Lenders have also started asking for greater payment cover from rental (perish the thought).

The number of mortgages approved in the last few months is down by about 40% YoY and this hasn't just been at the expense of OOs.

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thanks - useful threads.

So I guess if the BTL landlord is a in a good position they may stand still, or continue to buy ... if they're in a bad position they may not be able to buy even if they want to...

So who's most unstable? The bigger landlords who've geared more and so have little equity, and the rents don't cover the repayment mortgage?

Many more established landlords will have little or not debt as they will have bought their portfolio when there were few btl mortgages in existence. I used to work with one who had 14 houses in Durham that he had paid for in cash and that was in 2000. Of course he could have extended himself much too far since then but he used to follow the old rules.

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We have 3 student BTL properties in Bournemouth (sold a fourth over the summer to crystallise some gains)

Most established landlords aren't completely stupid; there's a very rough rule of thumb that eliminates 80% of properties straight off : the weekly rent has to roughly equal the number of £000s price - eg a £300,000 house has to be able to command a rent of £300pw or £1250 pcm. If not, forget it. Very few houses can do this without multi-occupancy / student (& the new regulations make it more difficult still.)

So the short answer is that they are waiting, just as much as FTBs for prices to come down.

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  • 293 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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