mark andrews

Registered with Property118.com
Saturday 19th March 2016


Latest Comments

Total Number of Property118 Comments: 32

mark andrews

20:54 PM, 19th June 2016
About 4 years ago

Summer Budget 2015 - Landlords Reactions

Oh James,

You'll be fine.

Just increase the rents 'innit.... Read More

mark andrews

18:28 PM, 19th June 2016
About 4 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "Bill Morgan" at "19/06/2016 - 17:34":

but could you make capital repayment work?

£400k property with 25% deposit. So £300k mortgage:

IO : £560 monthly payment

Capital Repayment : £1300 monthly payment.

I suspect many BTL's wouldn't be able to collect sufficient rent to cover the difference in costs. Maybe if you had one property you could make up the difference yourself, but people with highly leveraged portfolios would be screwed.

And herein lies the problem. Owner occupiers have no choice but to opt for capital repayment. Landlords can access more debt as they only need to cover the interest. Although the % rental cover is increasing from 125% to 145-150%, and may well go further once Basel 3 comes into effect.... Read More

mark andrews

17:18 PM, 19th June 2016
About 4 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "Bill Morgan" at "19/06/2016 - 17:12":

Hi Bill,

I suspect that if IO mortgages were removed from the market, then I doubt the BTL model would work at all. Certainly not for new purchases in London at current prices.

This is the problem. The "affordability" of IO mortgages has allowed house prices to inflate out of control. In fact the BTL business model in London requires house price inflation to make it worth while, as gross yields are awfully low.... Read More

mark andrews

16:48 PM, 19th June 2016
About 4 years ago

Summer Budget 2015 - Landlords Reactions

Reply to the comment left by "mark andrews" at "19/06/2016 - 16:38":

Also, I believe they will build these houses using funds from investors, so hopefully less debt will be involved.

The aspect people take issue to is that currently mortgage debt is preferentially channeled through BTL at expense of FTBrs.

BTL can release equity from their existing properties to fund new purchases. They then loan against market rental values rather than income multiples. There is simply no way that a FTBr can compete with this. So they are then forced to rent, which continues to feed the BTL machine.... Read More

mark andrews

16:38 PM, 19th June 2016
About 4 years ago

Summer Budget 2015 - Landlords Reactions

I believe this company intends to build new properties which they will then let out? If this is the case then this will be a positive effect and how I would like to see the PRS run. This would seem a better approach as it creates new stock, rather than the current model where we see BTL and FTBrs competing for the existing stock.... Read More