Buy-to-let lending soars despite warnings by Finance News Bulletin

Buy-to-let lending soars despite warnings - Published:17/10/07

Buy-to-let investors are continuing to dive into possessions despite warnings the market may have peakedBUY-TO-LET bang: Property investors are continuing to plough in despite warnings the marketplace may have peakedPOLL: Should Labour match the Conservative's plans to lift the inheritance tax doorsill to £1mThe buy-to-let bubble is set to burst, says a respected City analyst Read the account and have your say: Buy-to-letThinking about investing in possessions This is Money has the most excellent buy-to-let information and advice >> Buy-to-let tipsFigures released this week for August mortgage lending showed physically powerful property investing was propping up the marketplace with the 'other lending category' cover buy-to-let up by almost 40% on the same month last yearThe Council of Mortgage Lenders said £78bn value of loans were taken out under the 'other lending' heading in August – creation up just under a quarter of the total £34bn borrowed during the monthThe CML supposed: 'Total lending has been buoyed by a strong buy-to-let marketplace Other lending was 37% higher than in August 2006, and has been consistently higher than its similar 2006 figure throughout this day'This primarily covers buy-to-let which has continued to be underpinned by house price increases, tenant insist, rent increases and landlords' willingness to take lasting investment decisions'The robust nature of the buy-to-let market in 2007 has confounded the prospect of property bears who had predicted a slump in the market and denting of confidenceWarnings of a slump have been issued since the start of the year and have increased over the summer and since the Northern Rock crisis last month This week experts at Capital Economics said house prices could drop by thousands in the next few yearsimposing's strong buy-to-let borrowing came at the same time as homeowners' borrowing for home buy and remortgages declined by 11% and 12% respectivelyChanges to the duty regime made this week in the Pre-Budget Report will also help buy-to-let landlords who have made fit profits over recent years Chancellor Alistair sweetheart cut the rate of capital gains duty to a flat 18%, from its previous height of up to 40%, and axed the complicated taper release system, which brought tax down to a minimum of 24% after ten yearsThis means landlords cashing in proceeds above their annual capital gains tax payment of £9,200 would make substantial investments, especially on properties held for less than ten existenceBuy-to-let specialist Mortgages for Business said some landlords may take the chance to sell, but an increased interest in residential property investing could happen Jonathan Moore, of Mortgages for Business, supposed: 'CGT has become notoriously complex tax, with rates varying from 40% to 10%, depending on the benefit and how long it has been detained'This so-called taper relief will now be scrapped next day Many buy-to-let investors and second-home owners countenance a minimum CGT rate of 24% on profits when they sell The new 18% will denote a tax cut for many'The novel single rate will be of bigger benefit to investors who have been landlords for less than three existence, who would currently be taxed at 40% - from April their potential tax legal responsibility will be more than halvedMr Moore said: 'This move will certainly see investors hold off selling possessions until April next year and will be welcomed particularly by those investors who have an violent buy and put up for sale strategy We would also expect to see a renewed interest in property as an investment'Looks similar to a lot of people here suffering from acid grapes and dont know what they are talking aboutBottom line is there will always be ups and downs If you are in the BTL commerce or growth business this is part of the challenge Peaks and troughs will always live Some idiots posting here dont know the dissimilarity between a BTL mortgage and a BLT sandwichPrivate purchasers should stay obvious of 1-2 bed flats Most new developments already have large proprtion of BTL flats and that income dirt, filthy common parts, rubbish, noise and constant change of tenants Those are ghettos now like council estates, to be avoided at all expenses Prices of flats are already distant too high compering to houses More BTLs = lower rentsBTL is here to stay A price slump will merely remove the over-leveraged, but will present a buying chance for the more astute BTL'ers It's not gluttony that motivates the novel generation of BTL's, but disillusionment with the pensions industry - BTL is the new retirement funds The company retirement fund system in this country used to be among the best in the world It wasn't out of order G Brown "fixed it" Now it's broken People in the confidential sector now turn to BTL to try to keep away from an impoverished retirementBTL'er Aylesbury: "The cause I became a BTL'er was my Pension Fund was invested in Equitable existence"Equitable existence failed to recognise the crash of falling global inflation and interest rates; you are in danger of failing to recognise the crash of rising global inflation and interest taxOil has just breached 84 dollers a barrel,I believe the BOE and ECB will not be in a hurry to cut interest rates do you The next move could be up After all there is inflation to control Maybe everybody wants inflation but won't confess itWhat this account doesn't tell us is how much of August's mortgage lending was for new build properties that were kept several months ago (ie when there was a improved growth viewpoint If, say, 75% of BTL lending was on reserved new builds, then you could argue exactly the conflicting of the headline What we need to know is how much of BTL lending is on before reserved new build, remortaging of previous BTL (or indeed properties that were 'incorrectly' originally mortgaged as housing and on 'normal' buys If you were a BTL person who put down a 20k deposit down 6 months ago on something which has probably already valued by 2-3%, you're not leaving to walk away from it now, are youThe buy to let manufacturing is clearly pricing out first time buyers You only have to look at the newbuild blocks that have been bought by the investors off diagram at a so called discounted price leaving a couple left for everyone to fight over at a exaggerated priceBy to let is in trouble now, rising interest tax, low rents and now a drop in there precious overinflated equityIn France, 205 of new builds must be for social housing Mind you there are some social problems, timepiece the news next Thursday 18th Octoberattractive programme on BBC 2 this twilight Conclusion, BUY TO DEBT Looks like many BTLs will be bankrupt this time next year The arithmetic just do not add up2 inflation is heading out of manage and the banks are seeing the risks so even if the BofE put on't react the banks will have to tighten up3 Because this is a fizz and herd mentality will kick in as it has done time and time againPS my hairdresser and her mates are in buy to let They found a "way" to get high mortgages and they are already very close to the breadline but still think they will be wealthy soon oopsAh BTLer, the classic argument, that you'd be clever to afford a house if only you didn't pay money for that ipod Let's say I want to pay money for a fairly essential house in Reading for my family (£200K) 35x salary = £875K That foliage me to find a £1125K put Now if only I hadn't bought those 500 ipodsI responsibility that BBC1 programme that is on every morning touting BTL and the Bradford an Bingley ads touting they can create your BTL dreams come true If people cannot afford to a mortgage themselves how will they be able to rent to wrap the BTL mortgageSelect a loan term 12 months (1 day 24 months (2 years) 36 months (3 existence 48 months (4 existence 60 months (5 existence 72 months (6 existence 84 months (7 existence 96 months (8 existence 108 months (9 existence 120 months (10 existencePlease select a type of insurance Life insurance house and contents Car stop working services Health - medical Health - dental Travel.

Britain's Biggest Mortgage Lender Offers 125% Mortgages - Published:17/11/06

Britain’s main mortgage lender, HBOS, has launched a new home mortgage loan package for recent alumni and young professionals which will allow them to borrow up to 125% of the value of their propertyComprised of a 95% house mortgage loan and 30% unsecured personal loan, the Mortgage Plus contract is being offered to alumni and young professionals through HBOS’s specialist lending limb, Birmingham Midshires The mortgage lender hopes that this new deal will help elevate them to the top mark of the UK’s niche mortgage market of lending to youthful professionals and recent graduates – a marketplace which is estimated to be worth £10 billionWhile borrower’s will still be necessary to put down a deposit of 5% of the property’s value, hence the 95% house mortgage loan, the 30% unsecured loan, which cannot be for more than £30,000, can be used as surplus cash to disburse for all of the customary outgoings normally associated with buying a property in the UK; such as trample duty, furniture and home decorations Practically, this should make it much easier for youthful professionals and alumni in the UK to come with the 5% down payment needed to meet the criteria for the packageAlthough HBOS’s latest package may seem radical, this is not the first time we have been down this road Those who recall the dark days of unenthusiastic equity in the UK housing market in the late 1980s and early 1990s will also be clever to recall that a big amount of this negative equity resulted from homeowners who had be granted 125% home mortgage loans by their mortgage lendersWith the Bank of England’s recent announced rise in base rate, record numbers of UK house repossessions, and a large increase in the figure of homeowners in arrears of their mortgage repayments in the last six months, many manufacturing watchers are now extremely concerned that the 125% mortgage offer from HBOS, as well as alike deals being offered by Northern Rock, Coventry structure Society and Bradford and Bingley, is going to put an unnecessary financial burden on young professionals and alumni, looking to future earning to repay present debts, who have yet to fully adjust to a existence of financial discipline outside on university and who may otherwise have wished to be a little reckless with their pay-checkWhile the temptation to get on the UK housing market earlier rather than later may be extremely tempting, any youthful professional considering a 125% home mortgage loan only needs to look back a few years to see the dangers that can be tied up with this kind of home possessions loan borrowing“Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it” language that have to be printed on any promotional material for mortgages or proprietor secured loans Is this the only reason you should keep paying your mortgageThe market is swarming with different types of mortgages, but how do you know which one is right for you The decision has to be yours, whether you take advice from an Independent Financial Advisor or do your own researchIt’s simple to say “go and research the marketplace place to find the cheapest advance, but is it that easy to actually do it and how do you know that you have really got the most excellent mortgage deal when you’ve finishedEarly Redemption Penalties - Loan Extras - money owing Consolidation Bad Credit - Choosing a Personal Loan - Loan Penalties - cash Saving.

Family home is where the heart is - Published:09/11/06

The vast mainstream of people are determined to remain in the family house for as long as possible rather than sell up to finance their retirement says Bradford & BingleyA survey showed that 85 per cent of UK homeowners desire to stay in their home and over a quarter were ready to work past the pensionable age in order to do so rather than be forced to downsizeThis may come as no shock considering that, of the non-retired respondents, the average family wage was found to be £25,700, however, this falls to £11,800 on retirementGus Park, head of life mortgages at Bradford and Bingley, fixed: "Clearly many will have to face some tough decisions if they are to make trimmings meet in the long term""But, although over not whole of all respondents (68 per cent) owned properties with three or more bedrooms, now one in five (20 per cent) of our survey said they would think downsizing as a way to plan for a comfortable retirement," Mr Park additionalFurthermore, Mr Park continued to state that pensioners who are struggling monetarily should seek advice from an advisor as to determine how most excellent to manage their moneyThe average basic condition pension in the UK at present stands at £8425 per week but this figure.

Buy-to-let lending soars despite warnings by Finance News Bulletin

Published: 17/10/07

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Buy-to-let lending soars despite warnings - Published:17/10/07

Britain's Biggest Mortgage Lender Offers 125% Mortgages - Published:17/11/06

Family home is where the heart is - Published:09/11/06