Singing Pig

Hello All,

Due to what seems like daily negative media coverage regarding mortgage rates rising, I was wondering what people’s “gut feelings” are towards lending now and in the near future. In particular the following:

How long do you anticipate these current high BTL mortgage rates?

Do you feel that the days are numbered for 85% LTV BTL mortgages?

I believe that most are agreed that the situation is going to get worse before it gets better, but how bad and how long???

Unfortunately nobody (that I know of) has a crystal ball, but as there is a good mix of mortgage advisors and property investors on this forum, I’m interested to see what other people think regarding this topic.

Ben

Maximum BTL LTV will soon be in the region of 65-75%.

That's what happened in Hong Kong during the big slide here

 In looking through some past postings here :

 It seems that some folks did have a decent crystal ball, but they were not believed.

StillBullish:

Maximum BTL LTV will soon be in the region of 65-75%.

That's what happened in Hong Kong during the big slide here

 In looking through some past postings here :

 It seems that some folks did have a decent crystal ball, but they were not believed.

big slide here ??

 thought you were american "james" ... or should i say "doctor"?!  (maniacal laughter)

Well observed pod......James Cameron directed Titanic..Dr B's schoolboy games coming to the fore again. It must get lonely in his mums back bedroom at times.

The credit crunch is going to last a couple more years at least.  On the US side it has moved from sub prime into the prime market with continuing house price falls and bigger bank loses.

Over here the credit crunch has only really just started.  The British sub prime losses are rapidly growing and have plunged Bradford & Bingley/Mortgage Express into big loses.  We are going to lose a couple of banks in the comming months, just look at the share values and rights issues especially HBOS.

The we have massive inflation, it looks like interest rates will rise in a couple of months and not cut. 

"Dr B's schoolboy games coming to the fore again. It must get lonely in his mums back bedroom at times"

???

Games?

I think the situation is very serious.  Not a time for games. People here need to have a plan to : get out of debt, or get out of UK property if necessary. 

StillBullish:

I think the situation is very serious.  Not a time for games. People here need to have a plan to : get out of debt, or get out of UK property if necessary. 

I think those with large equity left can sell quickly at a discount and still walk away with a healthy profit.  However time is running out and it it is likely over the next few months we are going to see some of the biggest price drops in history.  A 3% monthly fall for Halifax and Nationwide figures is increasingly being reported.

I think after next months and the following months figures it is going to be increasingly difficult to sell at a profit.  The window of opportunity is definitely shrinking fast. 

brit,

i'm confused ... who is this advice aimed at? who are you suggesting should "walk away"?  all home-owners, or just landlords?  porfolio landlords or amateur landlords? 

if its home-owners generally, the vast majority would not sell to rent ....... too much of a disruption to their lives.  they will just plod along paying the mortgage, they may decide to build / renovate rather than sell.  most know, intuitively, that their property will be worth far, far more than today's value when they reach the end of the mortgage.  my neighbours, thirty-odd year old couple, 2 young kids, mortgage of £100k on £200k prop.  the current downturn is not going to have much impact on them, except that their next mortgage will (probably) be higher. 

if you mean portfolio landlords ....... if they are cashflow positive and good renters .... why sell?  don;t under-estimate the hassle of selling property.  my typical house, bought for 80k, now worth 140k ....... if prices drop 10% it isn;t worth me selling and re-buying after fees/tax.  the only landlords who will sell are those who can't stand a negative cashflow position, and who can;t raise the extra funds to deposit into the prop to enable a remortgage. 

brit .... time to get off your soapbox and see the world as it really is ... not through the eyes of a young, inexperienced, tenant with no investment property. be in no doubt, we are seeing a falling off from a peak last year ..... bu there will more, higher peaks to follow.  god know how much my portfolio will be worth in the year 2033 .... when i retire.  2x, 3x what its worth now ....... more?