The UK property boom is now bigger than the 2008 housing bubble in the US
Bank of England governor Mark Carney said again that he was worried about the growth of buy-to-let (BTL) mortgages in Britain. Speaking to a panel of MPs today, the Evening Standard quoted him as saying:
We think developments in the buy-to-let market have warranted heightened scrutiny and have done so for some time.
As a general rule, any time you see a very sharp and sustained increase in activity in one area … it at least bears heightened scrutiny.
The problem with BTL mortgages is that their interest rates reset at higher rates if the BoE rate changes, and they are often given to borrowers who have lower credit ratings than regular homeowners.
(Plus, of course, they rely on a continued supply of new renters to make the payments, not merely the owner's own income.) And e...