Saturday, February 12, 2011

The Slow Learners Club is recruiting

Mortgage providers relax criteria on buy-to-let loans

"Better mortgage deals are being offered to buy-to-let investors, with one lender now providing mortgages of up to 85 per cent of a property’s value – the highest loan to value available to landlords since the credit crunch. The move comes as more high street lenders look to enter the buy-to-let market, which could see competition in the sector increase and provide more choice for property investors." Somewhat surprisingly, London seems to be one of the worst cities for BTL which seems to contradict the rising rents angle: "for an investor to borrow the full 85 per cent, a property would have to yield in excess of 6.1 per cent, Bedford says. Rental properties in London are unlikely to achieve a yield as high as this." Leveraged BTLers could suffer from falling prices and higher IRs.

Posted by quiet guy @ 12:04 PM (3867 views)
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22 thoughts on “The Slow Learners Club is recruiting

  • Rental properties in London are in massive oversupply and facing downward pressure from the cut in social housing rents. Mystery solved.

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  • So we see a last ditch effort to squeeze yet more out of a stagnant housing market, with London apparently being the exception – presumably because it still is still a relatively healthy market.

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  • mark wadsworth says:

    The very slow learners’ club indeed, don’t they remember what happened to e.g. Bradford & Bingley?

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  • A brilliant operation! – A 2.50% fee would mean a charge of £7,500 on a £300,000 house mortgage, wouldn’t it?

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  • “A secure home for your money, in the Bradford & Bingley”

    I didn’t think for a minute that they meant everyone’s money. Now that’s what I call extremely effective advertising.

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  • sibley's b'stard child says:

    Great headline QG.

    Apart from being a largely irrelevant article; Yorkshire BS might and Santander might get into the BTL market.

    Still, this caught my eye:

    ‘Landlords will also need to watch out for the high reversion rate at the end of the mortgage period, says Melanie Bien of Private Finance. Under Kensington’s terms, borrowers will move on to a variable rate of 5 per cent over Libor – the rate at which banks lend to each other – which would currently give a rate of 5.75 per cent.

    Yeah, I wonder how that will work out for the BTL mob in x years time (not least factoring in an assumed 10% drop in HPs effecting their equity)?

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  • I must agree these numbers are a fairly poor deal.

    However, could this ne an indication of loosening credit availability for the btl Market and hence putting in some potential support ?

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  • Maybe these are the ‘small businesses’ that the coalition are going to force the banks to lend to…………it’s clear they want a floor put under the market, even if it means sawing up the furniture. If you’re young and got a deposit, just get on with life and buy what you can, there is no political will to deflate prices to a version of the long term norm…..just remember the words ‘There is no such thing as society’ – the Mewers love their Chelsea Tractors too much to care about your unfortunate predicament. Buy at the age you must, because by the time this county’s own verion of the ‘lost decade’ is over, your womans eggs will have gone off in the box. Consider yourself hard-done by for sure, but if you want a home and kids you’ll need to pay price now or be too old to take a mortgage out later.

    Sometimes life is not fair, but go to a Premiership match and see passes for important to our service industry masses in their McJobs, and what they’ll pay to watch it.

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  • “Sometimes life is not fair, but go to a Premiership match and see (what) passes for important to our service industry masses in their McJobs, and what they’ll pay to watch it.” [email protected]

    Brilliant and priceless:0)

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  • Yup, I hate and despise football for what it has become.
    A game based around overpaid pre-madonnas with the outcome usually based around cheating and whether or not the referee witnessed the incident.
    Then followed by moronic masses that then go through their own lives doing their best to get ‘one over’ on their fellow man. (Or scoring a goal as they may see it).

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  • Now you tell mr how many footballers would leave the game if the max salary was £100k + £1k per player per Goal scored for the team + £1k per player win bonus.
    I’m all for capitalism so Nike or whoever can individually sponsor a player for as much as they like but have to then stick with that player if they move clubs. Bad conduct being the only get out for a sponsor. This would keep the sponsorship levels down as the corporate will have to pay it for the career of that player.

    With the above in place, players could move to different teams more freely stopping oligarchs etc ruling the game.

    Also clubs could then operate as any other normal business in a state of liquidity not bankruptcy.

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  • Bring back the old league system, get rid of the premiership, ban Murdoch and all other businesses from buying the television rights and allow BBC & ITV to show all games on terrestrial TV on a non pay per view basis. That would take the mega-money out of the sport and we’d be back to where we were before Murdoch shoved his snout in the trough. Or more accurately, before he filled the trough with money. Amazingly, this would lead to old fashioned sportsmanship and home grown talent – in a few years we’d be at the top of our game again. Just a thought.

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  • I don’t blame the men on the pitch at all. I just think there’s a Romanesque connection……bread and circuses

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  • mark wadsworth says:

    “Pre-madonna” is a genius misspelling of “prima donna”.

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  • Why not give them all a ball to play with? it’s all down to supply & demand!

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  • Ooops sorry.

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  • Every citizen on below say £50,000 a year gets to play for a premier league side for one week, ie training plus one or two matches as are
    scheduled, for the weeks wages of the player they replace hey presto a little banker bonus for all! Helps get more spending in the wider economy, clear debts etc, whats not to like?

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  • X factor football… if you play well and the audience likes you, you get to play in further matches.

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  • 12. braindeed said…I don’t blame the men on the pitch at all. I just think there’s a Romanesque connection……bread and circuses

    ~ Spot on. If only McPeople knew as much about what has occured in history as they did with the obsession of footballs synthetic and

    periodic life victories. It’s ironic that they support a team concept that doesn’t really exist in the cold light of day.

    All that wasted aggression and knowledge Caesar!

    Thumbs down. ‘Three lions on a shirt’ indeed, braindeed.

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  • How’s the strokes coming on Munchy?

    Love you XXX

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  • PS…..got an invite to the ‘Diamond Club’ on Saturday…..drove out the underground car park and the masses were taking my photo, presumably because the thot i woz famous…..Mrs B waved to the poor saps…..Jeez, you couldn’t make it up

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  • PS…..got an invite to the ‘Diamond Club’ on Saturday…..drove out the underground car park and the masses were taking my photo, presumably because the thot i woz famous…..Mrs B waved to the poor saps…..Jeez, you couldn’t make it up

    Reply
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