Buy to let mortgages as safe as houses?

Buy to let mortgages as safe as houses?

The heavily impending credit crunch has stricken fear into the hearts of almost every aspiring property developer. The only exception according to the Sunday Times Style magazine, being the hedonistic Oligarch offspring buying up converted party pads in London’s Belgravia.

Unfortunately for me, I am not one of the latter.

Of course the super rich couldn’t care less about making a loss. A few million to them is a drop in the park, a few thousand to the rest of us is more like a drop kick in the b****.

After I began to start thinking that my buy to let mortgages would be safe, the Guardian newspaper last week kindly informed me that in fact, I was not.

So as I shivered into my cornflakes I read of how Inside Track, the company that spearheaded the buy-to-let investment boom has already gone into administration.

So if the sharks can’t survive what hope is there for the smaller fish?

The Council of Mortgage lenders initially reported that buy-to-let mortgage holders were weathering the crunch storm well. In fact, according to Michael Coogan, CML’s director general:

"Buy-to-let has remained resilient in the face of the funding constraints that have affected the sector and the wider mortgage market." – The Telegraph

Pah. I don’t believe him of course. I plan to sell up before everyone else with buy to let mortgages catches on. Mr Coogan is just looking after his own back and reassuring the unquestioning consumer.

Fortunately for me this time, I am definitely one of the latter.