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BTL and credit crunch - what effect has it had on you if any?


CH1

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With the current down turn in markets and fall in housing, wondered what effect the current credit situation is having with any of you...

I am about to complete on mortgage today (hopefully...fingers crossed, everything crossed!) it's on a property I was set to buy 6 months ago but there was a problem with the title -now its cleared . However, I later came to know my original mortgage offer from end of last year had been cancelled and the particular lender was no longer lending or taking on new credit. With great difficulty I got the lender to re-instate my original offer which the MD did only if I completed today. So I am doing so, but am concerned and what the market will be like in 2 years time when my current mortage rates end..I just hope I won't be in negative equity. I know its a long term plan and will have to just ride the tide, just wondered if anyone else had problems getting credit recently or the impact of it.

I came across this statement from:http://ukhousebubble.blogspot.com/

"So, the buy-to-let boom is over. The banks know it and trying to get out. There will be a couple of dimwitted investors who will pile in when everyone else is pulling out. "

any comments

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I don't listen to any of them just do my own thing, I read negative press but bear in mind that negative press is what sells newspapers.

If you want stats the one that springs to mind is 'house prices have doubled every ten years over the last 100 years'.

The reason’s I got in BTL still stand and one of those was that I’m in it for the long haul.

As regards mortgage deals available, there are still plenty about. The current problem I see is there are no transactions taking place, as in people moving house, so estate agents will be feeling the pinch. I would think that anyone with a large deposit has a pretty good bargaining position at the moment.

Do you homework and do your own thing.

cheers

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He who dares Rodders !!

As always check , double check ...then check again....if it works do it ...if not ....NEXT please....

only problem i have to report is a difficulty in obtaining cc cards with particular company .....but this is related to me taking serios advantage of them for many years NOT the crunch ...

Have done 4 rem this mth 5.99% fixed 3yr (my figs still looking good with this !)

have another 4 to sort over next couple of mths will report back with results

The Rodent

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I'm back and I'm buying or at least I bought and have been renovating property recently.

Crisis what crisis? Sure, if you bought a run down 2 up 2 down in a poor run down,semi crime ridden location then expect the worse of any forthcoming property downturn. You can include 1 bed flats in that statement as well :D

I made my (limited) fortune during the last 1989..1993 and everyone told me I was bonkers then to do what I did.

Follow your nose, be careful and do your homework!

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As always check , double check ...then check again....if it works do it ...if not ....NEXT please....

only problem i have to report is a difficulty in obtaining cc cards with particular company .....but this is related to me taking serios advantage of them for many years NOT the crunch ...

Have done 4 rem this mth 5.99% fixed 3yr (my figs still looking good with this !)

have another 4 to sort over next couple of mths will report back with results

The Rodent

Thanks for your thoughts everyone.

Rodent, Out of interest;) what sort of lender fees are being added to those kind of 3 yr fixed rate deals?

Do you add it onto the loan and pay interest on top of that amount or pay it off?

I will have to look at remortgaging in about 6 months hoping the property would have appreciated as I only bought a year ago...

Look forward to hear how your new remortgages go.

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Hi CH1

got the last 4 with existing lender @ .5% +£250 admin fee ...added to loan ...fortunately these were all less than 100K so not to painfull ....

Not looking quite so good for the rest tho getting quoted 2.5% set up at 6.14 fixed 3yr...and these are upto £250k morts.......still watching market for a min to see what develops .........could always adopt T attitude and just not pay them tho .....................LOL !!!

The Rodent

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