Buy-to-let DOOM

[AtW]

Buy-to-let to become 'rich person's game' as another lender introduces harsher criteria for landlords

"Barclays has become the latest lender to impose tougher checks on landlords looking for mortgages.

The bank will require landlords to receive more in rent relative to their mortgage costs from next Thursday.

The bank has increased its minimum rental cover, which is the amount that rental payments exceed mortgage costs, from 135pc to 145pc.

The announcement follows last month's decision by Britain's second-largest lender, Nationwide, to tighten its criteria for buy-to-let landlords.

The Mortgage Works, the building society's specialist buy-to-let arm, announced that it would require landlords to receive 145pc on their mortgage costs in rental payments, an increase from 125pc.

Experts predicted that the decision would provoke a "domino effect", with many other lenders following suit, making it more difficult for thousands of landlords to get a mortgage."

Source: Buy-to-let to become 'rich person's game' as another lender introduces harsher criteria for landlords

They are doing it to prevent people from piling into BTL once pension reliefs get nerfed in next budget, you've heard it on here first...

[AtW]

Bonus:

'I have three properties at age 33 and £3,000 a month to save, do I get another buy-to-let or invest in shares?' 

[GB9]

The only problem here is that people are borrowing to buy and getting tax relief that puts them at an advantage over people who just want to buy to live.

Why should they get the tax break or even a loan. If they had the money themselves it wouldn't be an issue.

Lots of things are for the rich only. I would love a new 911 turbo but I haven't got the money and no one will lend me it. And then I will need a tax break to help repay the loan. Life's hard.

[AtW]

Why should they get the tax break or even a loan.

They get loan because banks can safely make money on them - BTL means they "own" some other house where they live, so it's safe for bank to loan them money.

BTL crowd effectively are the "first time" buyers who help keep the bubble inflated.

Lots of things are for the rich only. I would love a new 911 turbo but I haven't got the money and no one will lend me it. And then I will need a tax break to help repay the loan. Life's hard.

[FatLazyContractor]

They get loan because banks can safely make money on them - BTL means they "own" some other house where they live, so it's safe for bank to loan them money.

BTL crowd effectively are the "first time" buyers who help keep the bubble and MF inflated.

FTFY

[OwlHoot]

They are doing it to prevent people from piling into BTL once pension reliefs get nerfed in next budget, you've heard it on here first...

Not sure what being nerfed involves, but whatever it is it sounds bad and all too plausible!

[AtW]

Not sure what being nerfed involves, but whatever it is it sounds bad and all too plausible!

"In video gaming, a nerf is a change to a game that makes something less effective or desirable. The word can be used as a verb to describe that change. The opposite of nerf is buff or revamp."

HTH

[MrMarkyMark]

"In video gaming, a nerf is a change to a game that makes something less effective or desirable. The word can be used as a verb to describe that change. The opposite of nerf is buff or revamp."

HTH

Does that mean MM has been well and truly "nerfed"

[AtW]

Does that mean MM has been well and truly "nerfed"

No, the correct term in this case is "neutered".

HTH

[unemployed]

No, the correct term in this case is "neutered".

HTH

You need the equipment in the first place to produce newts

I'm going with jaffa

MrMarkyMark aka jaffa the chunt