At the end of the day consumer debt is at £1.6 trillion the **** was alwas going to hit the fan. To all the people who think there will be no big fall, where are all of the millions of buyers needed to keep the market chugging along going to get their 170 kto buy a house? unless they have 170 k tucked under the sofa of course
Banks would rather **** rusty razor blades than lend all these buy to letters £££££ atm

 

I don't actually think the BTL mortgage situation is as bad as the main leanding situation because bigger deposits are often involved, have looked around at mortgage recently myself I have noticed that many of the main lenders are still pushing BTL mortgage with very similar rates to those pre crunch, however these same lenders have remodelled their normal mortgages and are offering similar products {term wise} but with hight leanding rates.

All imo of course

 

Problem is, that BTL only works if the rental income is more than the mortgage payments. You would have to have a pretty hefty deposit for that to happen.

 

agreed, the BTL'ers at risk would be the ones who got 100% btl mortgages, and frankly they were asking for trouble anyway using that formula in the first place.

Onthe flip side if people cannot get mortgages for whatever reason, not necessarily the credit crunch, then there is a posible chance that rental incomes will increase with the additional forced demand balancing out the BTL market.

 

This is superb

YouTube - HOUSE PRICE CRASH