Mortgage rates

Affordability must eventually dictate house prices, just a case of whether the interest rates or house prices come down first in my opinion.

 

You follow your dream fella. A second property is a good idea if affordable.

 

Rentals are in short supply at the mo and if folk start selling up demand will increase further. What is the problem with people buying property for rentals? Not like buying second homes that are sat empty half the time.

 

Buying to let is unethical in every form to me, to be honest.

Literally just making money off people that don't have the savings to buy a house and adding to the thing that's stopping them being able to afford a house while charging them more than it would have cost them to buy the house, just because they don't have the savings for a deposit.

Not something that's possible to do ethically, in my opinion.

 

And you're not entitled to do it because 'you've worked your arse off all your life'.

So have the people who can't afford to buy houses, and are having to rent from you to cover your mortgage plus pay you some profit now.

 

JamDrop, I'm sorry to jump on this, cause generally you seem a good poster and sensible guy, but the above is nonsense, you really haven't thought it through.

There is and always will be a need for a rental market. If there isn't one, where will everyone who can't afford a deposit stay?

Landlords make **** all money from rents, enough to cover voids and fees with a little left over each month if they're lucky. The money comes from capital appreciation. Put 10k in the bank and it'll be worth diddly squat in 30 years time, put it in property and it will go up in line with the gold price as it has done since the 70's.

Being anti-landlord is a daft opinion and being anti-aspiration is bonkers. Due to equity, there is no better way to invest your money than property and it is very easy to invest in a conscientious way.

 

I don't know where to start with this one...

'while charging them more than it would have cost them to buy the house' might be a good start. Are you aware landlords must pay mortgages on a property, same as any buyer, but with higher interest rates, plus fees, repairs, void periods etc. That's why rents are always going to be higher than mortgages.

 

Even the big boys are postponing new phases and developments that haven’t started.
I’ve always used Groundworkers as a gauge for a real-time gauge of the economy, if you see groundworkers looking for work or being laid off you know it’s gonna be difficult in mi this to come.

 

I agree we do need rental properties but I would have more control in pricing and standards.

 

I’m not sure you could have made that post more condescending if you’d tried.

Let’s just say we’ll never agree as you clearly own multiple properties and will never accept an opposing opinion to your own so I’m not going to waste my day off on a fruitless argument.

 

We fixed ours at 2.64% for ten years, four and a half years ago. Some people we spoke to at the time thought we were mad but we were expecting increases after the Brexit vote, we obviously had no idea Covid was coming too.

 

That was a smart move. You're obviously a very sensible guy

 

LOL. Condescending much?

 

Ours runs out next month so we've just had to bite the bullet and get a new one at 5.40%

Right hit to the stomach that.

 

People buying houses to rent increases demand and lowers supply, pushing prices up. You talk about people who are forced into renting because they can't afford a deposit - people buying houses to rent are a major cause of that.

 

One point I will make here from a mortgage broker perspective is that due to rate rises, currently a large % of landlords can't get a re-mortgage because of the affordability calculations lenders use. The major part of the calculation is what the rental yield is. So the only way they'll be able to re-mortgage as it stands is if they increase the rent... in some cases quite significantly. So 'high rents' don't necessarily equal greed in all instances, increased rents or sell are currently the only realistic option for some landlords.

 

Fixed at 1.09 ending 31st October.. whilst I’m pretty sure I can cover the raise I suspect I’m one of the millions starting to panic a little bit right now!

 

Absolute ********. All those costs are passed on to the tenant and more. Otherwise there wouldn’t be a profit.

I genuinely hope laws come into place to make it impossible to buy to let and every knobhead that’s already doing it gets ****** over and is forced to sell for less than they bought it for.