Saturday, December 15, 2007
Front page shocker for indebted buy to letters
Well, the figures speak for themselves, amazing!! What this means is, that sub-prime BTL won't have access to the market or be able to refinance at the end of teaser rates, putting them into standard variable rates, at the fate of LIBOR rates and risk premiums. Its absolutely amazing how fast this is unravelling. Much quicker than 1992 and you can see that BTL is a big reason for that. Subprime buy-to-let mortgages, which cater for investors with blemished credit records, have virtually ceased to exist. There are now only 18 available in the market for such borrowers compared with 1,383 five months ago, according to Moneyfacts. For prime borrowers, the number of products has dropped from 2,265 in July to 1,724.