Sunday, April 5, 2009

BTL leeches got what they deserve

Buy-to-let blow for wealthy

Wealthy borrowers are being given as little as one month's notice to pay £1m off their mortgages, as banks take ever more dramatic steps to cope with the housing downturn

Posted by confused76 @ 08:24 AM (2353 views)
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19 thoughts on “BTL leeches got what they deserve

  • The banks are desperate to recoup their losses. Anyone else feel the house of cards comin a tumblin down?

    Wont be long now before I can finally get a decent house. [With 60 – 70% reduction of course]

    YIPPPPPPEEEEEEEEE

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  • They will have to pay the mortgage off anyway, so why not start early. They could use their credit cards!

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  • Why not? Just an old-fashioned margin call.

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  • The comments aare all anti-BTL. I wonder if that is just because BTLers are keeping their heads down? As BTL hating becomes more mainstream it will become more vehement. I wouldn’t be surprised to see the papers turning to the “and the idiot blew the money on a BMW X5 and looking flash while children in Africa were starving” type story. I imagine the government – still keen to find a scapegoat – might even remove the BTL tax breaks, which will really kill them off.

    I found this comment odd though:

    “I have a few buy to let properties and like most people am struggling with payments due to the mortgage payments being higher than the rental income. I was diagnosed with an incurable illness 9 years ago and despite working all my life I could not get any help from the government. My only way was to remortgage my property and buy another house to try and build for my future. ”

    Eh? Incurable illness? Future? Although I may feel sorry for someone with an incurable illness, what this person iss basically saying is that because they were ill they had no choice but to invest in property with a view to making vast profits without actually doing any work. What a [email protected]

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  • This is what “tougher regulation” looks like in practice. I hope the powers that be have the stomach for it. Why does it only apply to BTL?

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  • The rental income far exceeds the interest payments on the mortgage, yet the value of the property portfolio (which is based on rental income) has dropped by 20%. Could this mean that the interest payments are so low that banks need to make these calls in order to get some return on their loan portfolios?

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  • stillthinking says:

    A bit harsh to the BTLs. People do want to provide for themselves in pensions. Brown shouldn’t have raided the pension funds early on, and UK law shouldn’t deny access to pensions before retirement. Houses started to look like the only decent way to save, there were tax advantages in doing so.
    Saving in the UK has always been a rough ride, never more so than today. Unless you work in the public sector, you are facing a pretty bleak retirement.

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  • mark wadsworth says:

    There’s no need for BTL bashing, provided they are operating within the (rather generous) law, because … the markets are bashing them for us. The only reason that their rent covers their interest is because interest rates are artificially low. it strikes me that banks are perfectly entitled to insist on maximum LTVs but this article strikes me as purely anectodal ‘shock horror’ stories and not part of a wider trend.

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  • These ‘little known clauses’ were talked about within these pages 3 or 4 years ago. When assets are re-valued following falling prices, the banks have always been able to demand greater deposits even years after the loans are set, and these inlcude private mortgages, so anyone individual who took out a mortage in the last few years with deposit of up to 20% can expect a similar demand.

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  • So much for British Entreprenuerialism under a Labour Government.. Nice headline C76

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  • Another victorious day for HPC. SLAM DUNK!!!!

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  • The Anti-pawn says:

    So if you own a buy to let you are automatically a leech. What a load of nonsense. There are plenty of respectable people who invested in their future through buy to let seeing it as an alternative to pensions etc. While their actions may have been naive, it is not necesssarily the action of a leech. I am surprised this website allows such mindless tosh to be aired.

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  • 9. crunchy said…5. titaniccaptain said…”unless we get hyper inflation property is a no go area for along time.”

    I hope so! Speculating on property prices surging in value beyond the rate of inflation is equal to betting on whether FTBers will be priced

    out of the market.

    There is something very wrong about removing the right for a hard working person earning a reasonable salary to own what is after all a

    home. I want the entrapment of being forced to finance somebody elses retirement through renting to end, and if that means that past

    parasites go to the wall then so be it. Rant over for now!

    14. The Anti-pawn, We are all leeches in one form or another but to leech off of people that are unwilling participants IS LOW LIFE.

    From a previous post.

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  • Sorry but the BTL hater’s make me split my sides laughing. Take away the tax breaks (mortgage interest as an expense)

    Yeah right Dopey, then there won’t be any Landlords for the renters to look to for a roof over their head. Thank you to those new landlords who bought my rental properties last year, I love you all for giving me the chance of living in a sunnier climate with £20 a year property tax and no income tax anymore.

    Cheers

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  • 17. Mr Rigsby Feeling smug?

    The super leech. The bigger the leech the bigger the predator. Remember that bud!

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  • Not a leech at all crunchy, just good at market-timing on houses, Equities, FX and the ‘kin great financial tsunami about to screw Britain.

    Being a successful investor doesn’t make me a leech. And BTL was the only way to build up a pension fund after Brown started taxing their dividends, and also the only way to go while all the “Follow the Herdsters” were piling into Tech and Telecoms stocks for months after being warned of the Big Bubble about to pop.

    Glad I never had a renter with a mentality like you Bud

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