UK BTL Remortgage

Thinking of doing a remortgage on my Liverpool properties (cute enough not to buy city centre apartments). I want a variable tracker. The best I have seen is one from CHL at .89 over base. I have seen some a bit cheaper but they are not available to UK non residents. Looking at around 75% loan to value. Anyone know of anything better than the above ???

.89 over base is a good deal my son !

I thought CCA’s were good investments? People will always want to live in a city centre…

There is a huge oversupply of city centre apartments in most northern cities in England. It is estimated that over 30% of city centre apartments in Liverpool are vacant. Owners cant let or sell. For the last few years every derelect building, car park etc now has been transformed into a block of apartments. Far too much comming on stream too quick. Demand just is not there. Its not just Liverpool. Another problem is that most of these developments have been sold 100% to investors. This is not good as you do need a good level of owner occupiers who will try to make sure that the place is properly run.
I have terraced houses close to the city centre and have no problem letting. I paid much less than the price of an apartment yet get nearly as much rent. Probable the same if you take service charges into account.

It’s all about the yield :smiley: .

Bought most of my terrace houses in 2004 at an average of £45k to £50k. I am now getting around £400 to £450 rent per month. Other guys were buying off plan then at £120k and are now getting £550 to £600 pm less service charges. No comparison in yields

Angler, do you get many tenants who lived in the apartments and say never again? I’m interested in terms of the ‘livability’ of the apartments - if a 2 bed apartment is difficult to live in compared to a 2 bed terrace, the apartment will move to less than the value of the terrace (in rental price and ultimately then in purchase price).

Generally people who have lived in apartments are happy to continue with them. It really comes down to how well an apartment block is run. If the apartments are all owned by investors (especially Irish) the management company will usually have great difficulty collecting service charges. If money isnt coming in it cant go out so cleaning etc is not done as often as it should be and wery soon the whole development looks grotty and apartments are harder to rent. Landlords who had been paying their service charges then start complaining about conditions and say that they wont pay until something is done !!!. If you are buying an apartment dont go for one where the developer or his agent are targeting investors. You need to invest where there is a large number of owner occupiers.
I have 5 purpose build apartments. All are in the suburbs and are reasonably easy to rent but not as easy as my terraced.

It’s obvious you’re a very serious investor.

Are you worried about some of the apocalyptic -40% predictions for the UK market?

What kind of capital % drop from peak would make you begin to sell your portfolio?

Do you believe that the concerns and predictions of many of the Bears here regarding the irish market are overcooked?

What are the gearing strategies you would suggest for future wannabe property magnates?

( I know none of this is my business I’m curious.)

That’s a tough question to ask a LL. They are the last ones to know why someone left. I’ve rented a number of times now and I’ve never shared anythink with the LL. All you are interested in when leaving is you deposit.

With regard to the UK market I can only write about the market in Liverpool. That said I think all would be much the same.
I could see a drop of 40% in value of certain city centre apartments and maybe 30% in expensive houses.
I have invested in terraced houses. Most of these are valued around £70 to £90 grand. These may have gone down 5% maybe 10% max.
Drops in property values wont make me see up. Rents are good and for me thats the most important thing. I want investments that will more or less pay their way. I started small, remortgaged and bought more and continued this process.
I think that the Irish property market is generally overvalued but the overvalue varies greatly from area to area. When I get into the investment property mode I started in Rialto and Crumlin and I am very happy with the 5 I have there. I dont think that they would have dropped much. The area where I wouldnt like to be is in County Cavan where 7% of all houses are on the market.
It is hard to advise on what to do. I wouldnt advise buying in Ireland until next July or August when I think bargains may be available. Only buy where you will be able to rent. My favourite areas will always be good rental areas.


Hi ewd3,
If you want to email me privately I think there is a facility to do so and I could answer any queries in more detail