Saturday, December 1, 2007

BTL, the UK subprime, is dead in the water

Buy-to-let landlords fear they may have to sell as sub-prime mortgage deals dry up

1,383 sub-prime buy-to-let deals available in July, now 149. Only four unknown lenders remain in the market. investors who need to remortgage may no longer be offered attractive rates and will be forced to pay the standard variable rate, pushing up their monthly outgoings by hundreds of pounds when rental yields are flat. The EA Savills: “Novice landlords might sell up when the going gets tough and if the cost of mortgages rise. Without a similar increase in rents they might not be able to make it pay" Yeah, tell me something new!!

Posted by confused76 @ 07:51 AM (550 views)
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3 thoughts on “BTL, the UK subprime, is dead in the water

  • I know a few ‘late in the game ‘ BTL’s and none of them are prepared for the day in a year or two’s time whne they have to remortgage.I dread to think,given the newsflow,how difficult it may be for them to obtain even the most basic level funding ie a variable that is vaguely viable.

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  • Reaper, do not feel sorry for people who have more than 1 home.

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  • I’m not sure how many BTL mortgages have been sold to people with CCJ’s – probably not that many.

    What will catch the great bulk of BTL borrowers is not being able to get the same LTV percentage as before, and more hawkish valuations.

    My best guess is that BTL alone will probably be the cause of 20,000 to 40,000 personal bankruptcies over the next few years. The BTL mortgage lenders may wind up nursing a loss of £10-£20bn – possibly more.

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