Rubbish

I could spit feathers when I see stuff like this. There are now so many distressed landlords who are trying to unwind their liabilities. There are banks that have these idiots on their books – a significant constituent part of their toxic debts. The banks are absolutely right in not offering more than a 50% LTV. I have clients who have buy to let – but they buy outright with no mortgage. Current rates for BTL are in excess of 5.5%. The gross yield from the majority of BTL is 5.5% - you can see therefore that the bigger the loan the less sense it makes. Predicating on capital growth has led to the present woes. The scarcity of BTL mortgages is to be applauded as a return to common sense. Once the queue to buy has subsided (as it must if these people can’t get finance) then the prices will drop and the people with the wherewithal will step in. There won’t be a shortage of landlords. What is needed is a better yield, not more debt.

Posted by: Harry Katz

Rubbish mk2

With regard to rubbish mark one, well said from someone who has cash! So you suggest a 50% deposit, I have numorous landlords who were able to start with only 15% deposit and are now sitting quite comfortably, not sure who all these distressed folk are! The only BTL mortgages in trouble are the ones used fraudulently for new build or to purchase a main residence to get round income. As far as the article is concerned, another scare headline. although Buy to Lets are much more expensive than stated, most have fees of 2%-3% on top of the rate, they are still lending and that's the current cost so learn to live with it.

Posted by: Someone who knows

IFA

I would agree with most of what Harry Katz has said. Buy to let investors have lost sight of the yeild and have been seduced by the capital appreciation of their assets. BTL can be a valuable part of someones investment portfolio, however for many it has been their entire investment portfolio. This is obvoiusly an unhealth position that has been created by easy access mortgage financing, the need for a small deposits and the human desire not to missout on a good thing. Higher Deposits will bring some sanity to a market that has been out of control. Responsible leanding will bring property prices down, which will allow firstime buyers an option to get on the property ladder. The property market has been out of control for too long and a period of stability is needed for the good of the UK enconomy as a whole. I believe that the days of an easy return from BTL properties have gone. Good landlords will florish. Have a go investors in property will struggle and eventually fall out of the market.

Posted by: Neil Muir