Saturday, April 23, 2011

Some depressing news from the leeching sector

Buy-to-let Bounces Back

Britain's lenders are turning their backs on first-time buyers and other traditional borrowers, and granting mortgages to landlords instead amid signs of a new buy-to-let bubble. Northern Rock this week joined an expanding list of lenders, including a Lloyds Banking Group subsidiary, pushing out new buy-to-let loans on better terms, while Santander is also preparing to enter the market.

Posted by wanderinman @ 05:36 PM (3446 views)
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21 thoughts on “Some depressing news from the leeching sector

  • wanderinman says:

    The Guardian also has this accompanying comment piece:

    “Buy-to-let free-for-all is in desperate need of reform” http://www.guardian.co.uk/money/blog/2011/apr/23/buy-to-let-needs-reform

    “Investors get a good return – and many are decent landlords – but buy-to-let distorts the housing market, the economy and society … while on an individual level buy-to-let has (mostly) made financial sense, the societal impact of more than 1.3 million buy-to-letters – and more to come – is having a devastating impact on working people … The dream of a property-owning democracy is receding fast … Meanwhile, property wealth becomes ever more concentrated in the hands of the few rather than the many. Non-productive rentier capitalism is the enemy of enterprise, channelling the nation’s resources into the dead end of house price bubbles. Wouldn’t we rather it went into rebuilding Britain’s battered industrial base?”

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  • clockslinger says:

    Yes we would rather it went into something useful. However, legislating for that outcome means upsetting 1.3 million BTLers who have put their lot in with that investment. Now, why do you think that there won’t be anything done by the party of the really rich? Such measures as would adversely impact those 1.3million who are presently letting Cameron give Phillip Green, the banks and the supermarkets a big handout in tax cuts. You can’t gat away with that kind of thing whilst cutting public sevices if you also start to tax the “entrepreneurs” who voted for you on the biggest egg in their pension nest. This has been coming since Thatcher.

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  • Is there such a thing as a ‘decent landlord’?

    Not in my book, in fact, if the world wasn’t corrupted by the need of a few to own the most, we wouldn’t need them at all.

    More doublespeak.

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  • letthemfall says:

    Looks like we may after all see a return to the serfdom of the masses, in which housing is owned by the few. Back to Victorian values.

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  • ….’This has been coming since Thatcher’

    And perfected under 13 years of Labour.

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  • 3. letthemfall said…Looks like we may after all see a return to the serfdom of the masses, in which housing is owned by the few. Back to Victorian values.

    ~ “Agenda 21” mate.

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  • 4. p. doff said…….’This has been coming since Thatcher’

    And perfected under 13 years of Labour.

    ~ See a pattern here p. doff?

    I’ll make a conspiracist out of you yet, all in good time and you will be mine. 😉

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  • Regarding all the comments above:
    Quite true and regretable (to me at any rate). I read another blog recently which referred to the ‘nut-jobs’ on this particular blog.
    It’s really starting to ring true – There is no consensus, even here where most comments refer sympathetically to the view that Hps are far too high, as to why this is unfair on a ‘societal’ level. Very many of the bloggers are incensed that ‘they themselves are locked out of the market at the price they think is too much……all the time practising
    what they see as ‘clever’ manipulation of things as various as precious metals and various toilet paper derivative trading. (admittedly some appear bright are making ‘money’.) The trading of such alchemyious products is in itself a symptom of the corruption of civic connectedness that has all but evaporated. I’ve been banned from commenting directly for reprimanding (my interpretation) some who take every opportunity to extol a party line and its mindless slogans…..and as for the never ending moon howling regarding a century old theory which has only ever been tried out on in that great bastion of forward thinking (TASMANIA ffs) – mainly by a theorist who (by his own declaration) can actually afford to buy a comfortable home even as we speak…..words fail me.

    Nut jobs it is then.

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  • I thought all the ‘serious’ property investors had sold their BTL properties and are now living abroad somewhere? Certainly one of my BTL investor friends sold up 3 years a go. I presume the remaining investors in the market are the fools left over who are now just waiting to get their fingers burnt because when the huge collapse happens they wont stand a chance of selling at a value that will recover their money.

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  • A sign of desperation by these banks & building societies, they’re scabbling round looking for profits any way they can to act as a hedge against the Big Default that’s coming when the mountains of bad debt they’ve put out there defaults, & they think this is a way of doing it.

    Any1 taking out new debt at this scale to buy into a property collapse that’s ongoing deserves to lose their deposit

    Shows the banks still haven’t learnt the lesson of 2008; well the next 1’s on the way & it’s gonna be a lot worse, & there’ll be no more bail-out this time courtesy of HMG, which itself is bust now

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  • I suspect there are still plenty of baby-boomers who view BTL as a reasonably safe place to stash a good chunk of their pension money. This is propping up the market to a large extent.

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  • Every single mortgaged property, be it btl or otherwise is ultimately owned by the bank and effectively rented to the ‘investor’ or ‘occupier’ until they have paid a multiple of its original purchase price. Therefore as stated @1 ‘Non-productive rentier capitalism is the enemy of enterprise’ and is propped up in many cases by the ultimate king of the hill capitalists, the banks.

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  • @7 enuii, well put, nail on the head etc., but has anyone got any suggestions on how to stop the f*ckers screwing us over?

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  • @NP “but has anyone got any suggestions on how to stop the f*ckers screwing us over?”

    Yes, a mass withdrawal of savings from the big banks.

    I know this has been said before but instead of talking let’s do something about it.

    Withdraw your savings from the likes of Barclays, Lloyds etc and put them into building societies (not Nationwide though). I’m not saying that building societies are guiltless and they don’t offer any better rates but at the end of the day it’s the big banks that are really taking the p1ss and shafting us and are the ones to target.

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  • Grumpy Middle-aged Git says:

    I liked Cantona’s idea but we need to target one bank at a time with a week or more between each “attack” to give people time to move money from account to account and keep deposits relatively safe. Of course there is the risk that if one of the big banks panicked, it could bring the whole pack of cards tumbling down and who knows if the government could then guarantee the approx 85,000 quid protection to each deposit holder per UK registered banking group?
    We are being shafted on interest rates but as several have pointed out, you don’t want to be holding thousands in cash or bullion in your safe at home without spreading the risk.
    Anyone with more new media savvy than I fancy drawing up a list of target banks in order of their self-serving, vampire squid-sucking tendencies?

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  • mr g, agree the big bailed out banks should be targeted but some of the building societies are on the same bandwagon, see here etc.

    http://www.principality.co.uk/default.aspx?page=31

    http://www.leedsbuildingsociety.co.uk/mortgages/ratesbuytolet.html

    http://www.skipton.co.uk/mortgages/buy-to-let_mortgages/

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  • Thecountofnowhere says:

    desperation desperation desperstion…coming to channel 4 soon 😆

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  • novice pete says:

    Friendly Terminator banker says, ” Give us your money, you know we will look after it for you, 0.5% is very generous don’t you think, we do, ok so it’s 5.99% for borrowers but hey, someone has to pay! Cue evil laughter!

    width="1024"

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  • 11. novice pete

    I see Henry Paulson.

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  • “amid signs of a new buy-to-let bubble”

    Roll up, roll up. There are still a few 3rd class tickets available on board White Star’s new unsinkable liner, RMS Titanic.

    And we are also taking early bookings for the Empress of Ireland.

    Hurry along there. This way please!

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  • @NP

    Enough said about the 3 building societies you have provided a link to.

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