You are here: Home - News -

Buy to let a risk for borrowers

by:
  • 07/10/2002
  • 0
Speculative borrowers run the risk of substantial financial loss if they move investments out of the...

Speculative borrowers run the risk of substantial financial loss if they move investments out of the stock market and into the buy-to-let market, according to Ryan Emmett, an economist for the Royal Institution of Chartered Surveyors.

During a panel question and answer session at The Mortgage Event in Bolton, Emmett warned that, as stock markets continue to fall, people moving out of stocks and shares and into the buy-to-let market are entering into a risky area.

‘The market is vulnerable to a slowdown in demand. London is especially at risk and rents have been falling for some time. However, for those in this for the long term, the market is due for expansion,’ said Emmett.

Eddie Smith, business development director at Verso, said 45% of Verso’s lending was now buy to let.

He added: ‘There is lots of scope for the long term, but the market is risky as a pension substitute, or for a short-term quick buck.’


Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Crown Equity Release applies for SHIP membership

Crown Equity Release has applied for membership of Safe Home Income Plans (SHIP), the body whose acc...

Close