Monday, March 31, 2008
BTL investors currently paying an average 24% deposit (on a potentially depreciating illiquid asset)
57 % residential mortgages on fixed rates, says L&G
Legal & General’s quarterly index has found that 57 per cent of residential mortgages were on fixed rates compared to just 35 per cent for buy to let. It also found that average loan to value for residential mortgages is 66 per cent versus 76 per cent for BTL. Average two year fixed rates were 5.87 per cent compared to 5.82 per cent for five year deals. The data is based on over 28,000 applications over the past three months.
Posted by jack c @ 08:15 PM (172 views)
3 thoughts on “BTL investors currently paying an average 24% deposit (on a potentially depreciating illiquid asset)”
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confused76 says:
BTL is the UK sub-prime!
where is Greenthing?
waiting for the crash says:
I wonder how many BTLer’s will try to bail out this year if prices start to fall with over 1 million mortgages there could be a lot of property on the market very shortly as BTLer’s scramble for the exit.
The average BTLer doesn’t have that much equity to loss in the face of falling prices.
A song for the BTLer’s
Panic on the streets of London
Panic on the streets of Birmingham
I wonder to myself
Could life ever be sane again ?
The Leeds side-streets that you slip down
I wonder to myself
Hopes may rise on the Grasmere
But Honey Pie, you’re not safe here
So you run down
To the safety of the town
But there’s Panic on the streets of Carlisle
Dublin, Dundee, Humberside
I wonder to myself
new user 2007 says:
Does this mean BTL are actually more vulnerable than home owners?:) And this despite the likes of NR i.e. the feeders of the BTL bubble, all having low defaalt rates because “BTL are so astute”!