Buy to Let Mortgages
Lend2Landlord to announce the Death of BTL Mortgages at the Property Investor Show, Excel Centre London on Friday 7th
Lend2Landlord is the brainchild of Lee Grandin Managing Director of Landlord Mortgages Limited. Grandin was a regular commentator in the press on all aspects of BTL prior to the credit crunch. He appeared on TV money programmes and news.
After credit crunch Grandin nurtured relationships with existing portfolio landlord clients who continued to expand their portfolios albeit at a slow sustainable pace.
He believes, like some of his most respected clients, that central government stimulus could unravel asset prices (which includes property) and believes the tax changes on BTL could be the catalyst.
“No one can truly call when a bubble will burst but if commentators are stating the property market is overvalued then the sudden supply of property post BTL tax changes could well be the catalyst for a major price correction”
Grandin says “I recall being interviewed by the BBC on BTL New Build Buying Pitfalls” Link http://news.bbc.co.uk/1/hi/business/3594548.stm “I told them that buying new build was nothing more than a bet on house price movements. It was a high risk investment strategy.” Losses for mortgages lenders mounted as the BTL New Build Scandal unravelled with the credit crunch.
Grandin adds “BTL mortgage lenders got it wrong again. This time (post credit crunch) they (lenders) chased Tom, Dick and Harry (everyone) who earned £25,000 from non-property related income. They (lenders) shunned professional landlords who operated as a business. Now, once again BTL lenders could be looking at huge losses”
“They (lenders) should have known their lending model was risky. It was never going to politically acceptable or sustainable to have Tom, Dick and Harry own a BTL portfolio”
“Take note: A price correction where the losers are Tom, Dick and Harry with a BTL portfolio and the Banks who supported them is a vote winner”
“We all want our children to own their own home don’t we?”
Final “We (the public) do need a private rental sector but it will be a result of a rise corporate landlords and demise of Tom, Dick and Harry (BTL mortgages)”
Property Show: Seminars Friday 7th at 10.30 and Saturday 8th at 12.00
Location : Property Investor Show Excel London.
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