Major lenders Alliance & Leicester and Abbey both pulled the plug on the controversial 125% deals. The move came with banks and building societies already withdrawing 100% mortgages. Before Christmas, a third of lenders offered mortgages of 100% or more. Today, just one in ten do so.
To add to the gloom, a member of the Bank of England's monetary policy committee predicted last night that mortgages could become more expensive this year.
Kate Barker also warned of clear signs of a 'marked weakening' in the housing market. She blamed the severe problems faced by banks trying to borrow money since global markets were gripped by the 'credit crunch'.
The warning came on top of expert fears that newly-nationalised Northern Rock is about to raise rates for many of its borrowers, prompting other lenders to follow suit.
The 'super-size' 125% mortgages are often taken out by desperate young firsttime buyers and cash-strapped divorcees. They need the extra money for stamp duty, legal fees, decorating and other costs, but are instantly plunged into negative equity because the value of their home is less than the size of their loan. Now mortgage companies have finally caved into criticism that lending such huge sums is wrong.
Experts say there are two reasons for the retreat - lenders themselves are struggling to raise money for loans, and they are worried about handing it over to the highest-risk borrowers.
Alliance & Leicester was the first to make the move, axeing its 'Plus Mortgage' range which offered up to 125%. A few hours later, Abbey, the second-biggest mortgage lender, and Coventry Building Society said they will scrap their deals on Friday.
Northern Rock, which pioneered the 125% deal nearly a decade ago, is likely to follow in the next few days. That would leave just Birmingham Midshires with a 125% product, and it is unlikely to want to stand alone.
Analysts have already pointed to Alliance & Leicester as a lender that could experience similar problems to the Rock if the credit crunch continues, because it relies heavily on raising money from global money markets. The moves came amid warnings that the Northern Rock fiasco could trigger pain for mortgage holders across the High Street.
The bank is expected to move quickly to reduce its liabilities by slashing the size of its mortgage book. Industry insiders expect new chief Ron Sandler to try to persuade as many as half the Rock's mortgage-holders to take their business elsewhere by jacking up rates.
Tens of thousands of borrowers coming to the end of fixed-rate periods could be particularly badly hit. In turn, the increase in rates at Northern Rock could be used by other lenders as an excuse to do the same.
Tory spokesman Philip Hammond said last night: 'If any major lender decides to discourage customers from renewing when their fixed terms are up, that's bound to exert upward pressure on rates across the market.
Mortgage and property chat
Find out what readers are saying about mortgages, property and the housing market:
• Panorama - bursting the house price bubble
• Should you sell and rent back your home?
• Who should we remortgage with?
• How do I beat stamp duty problem?
• Shall I buy property in Bulgaria?
• Rightmove figures - right or wrong?
'Some people, particularly those with poor credit records, are sadly likely to find they are unable to continue with their mortgages.' Louise Cuming, head of mortgages at moneysupermarket.com, said: 'There's absolutely no doubt Northern Rock was walking a seriously risky tightrope.
'They were offering four or five times income. People who have borrowed a lot for their mortgages often don't stop there, and may have gone on to acquire other unsecured debts. There will undoubtedly be some who won't be able to rehouse elsewhere.'
Mega-mortgages have become common only over the last decade, fuelled by people's desperation to get onto the property ladder before prices soared further out of reach. Industry sources estimate up to 20,000 loans every year have been handed out to people borrowing 100% or more. But the numbers have slumped since last September's Northern Rock crisis.
Ray Boulger, from mortgage advisers John Charcol, warned: 'If a borrower gets into difficult with little or no equity in their home, they've got nowhere to go.' He said a falling housing market and homeowners with 100% or more mortgages can be a fatal combination. If they are forced to sell, they may have to cut 10% off the asking price to find a buyer - making it more likely the sale price will be lower than their loan.
There is another major concern for borrowers who have taken out such deals. When their initial two or three-year arrangement ends, they may struggle to find a lender willing to give them a similar mortgage. David Hollingworth, from mortgage advisers London & Country, said: 'If these deals do not return, borrowers are going to have to work a lot harder to reduce their debt.'
The decision to axe 100% deals will further turn the screw on first-time buyers, whose mortgage repayments account, on average, for a staggering 35% of their disposable income. The number of first-time buyers has already fallen to its lowest since 1980, according to research by the Halifax.
--------------------------------------------------------------------------------
MORTGAGE BROKERS BANNED
Two partners of a mortgage broking firm have been banned for helping customers make fraudulent mortgage applications. The Financial Services Authority (FSA) found that over a period of three years Amjad Malik and Tahir Mahmood, partners with Abbaci Associates in Ilford, Essex, had submitted applications on behalf of clients that included fake pay slips and lies about their occupations.
--------------------------------------------------------------------------------
Other stories:
Homes cost £7m in London's priciest street
What now for Northern Rock mortgages?
Overpaying is freeing our mortgage chains
Unsold homes rise as sellers fail to budge
House prices may fall, warns Mervyn King
How to buy a home at auction
Cerne Abbas voted most desireable village
Agents see sixth month of property gloom
Print
Read later
Mail to a friend
WANT TO KNOW MORE?Find the best mortgage for you
Would you be better off renting a home?
Has your mortgage rate been cut?
READER COMMENTS (6)
I had to laugh! Its about time this sorry state of affairs was bought to an end. But its OK, because there are always the 'sound fundamentals' which will help prop the market up! Is there any more desperate spin left to keep this thing going? We all know where its going.....time to sit back and watch the show!
- Darren, Plymouth
The 125% mortgage was obscene. Good riddance. Good to see that Northern Rock paid the price. There is some justice in the world.
- Pat Lyne, London
Reality is returning to the mortgage world. The problem is that prices in the past four years have been based on mad lending practices, combined with low interest rates. Once these props are removed, prices will have to drop. Apparently the number of new mortgages is back to the 1995 level.
- Surreyboy1, Surrey UK
Thats because they want a lot of their customers to go elsewhere, when they do then they will have to pay up in full, bringing in the revenue needed hopefully to pay back the taxpayer.
- Joe Brown, Bucks
'Mortgages which let people borrow more than the value of their home are being dramatically scrapped .... forcing would-be buyers to produce a deposit.'
That has a familiar ring about it. Oh, I remember now. Those are two of the conditions I had to fulfil 25 years ago in order to obtain a mortgage.
Isn't progress a wonderful thing?
- Tc, Leeds, U.K.
Quote "The warning came on top of expert fears that newly-nationalised Northern Rock is about to raise rates for many of its borrowers, prompting other lenders to follow suit" This is scandalous. First the government slaughters us with taxes, now they are attempting to force us out of our homes. It's going too far, we need a revolution now!
- Eric, Glasgow
Full Version: Bye Bye 100% Mortgages
The party's over then Subby?
indeed it is - 200k price and looking on average 10% deposit....not too many FTBers with 20k saved up 
QUOTE (subby @ Feb 20 2008, 03:29 PM) 
indeed it is - 200k price and looking on average 10% deposit....not too many FTBers with 20k saved up
Northern Rock now up to SVR of 7.7% for discount trackers.
BTL'ers are also going to find the LTV drastically changed from the 85% or 90% that was the norm over the last couple of years - esp those buying new-build apartments..
Several lenders have stated that due to concerns over valuations they no longer lend on large new build apartment blocks, and of those that still do, some have slashed the LTV's they are prepared to offer to around 60%, 65% of 70%..
Imagine buying one of the 2 bed apartments for approx £450,000 and only getting a 65% LTV, this would mean a maximum loan of circa £292,500. So the purchaser would need to put down £157,500.... Not forgetting stamp duty, legal fees, furnishing costs etc...
I apologise my maths are basic and dodgy, but how can the sums stack up? How much rent would need to be charged to attempt to cover the mortgage, rates, Mngt Charge etc??
Obviously imho the purchaser would have to stump up alot more money to reduce LTV make rental anyway feasible....
Anyone any thoughts?
Was there ever any doubt?
I think that almost everyone with an eye for true fundamentals (i.e. not the 'supply/demand' band) was aware that these loans were a bad idea. I cannot believe that the banks were not similarly aware so I must assume that they were aware of the potential issues and figured that they were so far in the crap that there was little more to lose.
I do not honestly believe that economists and those (generally) within finance were unaware of the problems. So why did these sort of practices continue? I can understand the banks because they are better taking a lot of risks that wont be realised for a years rather than acting cautiously and being dead and buried before the s%^& hits the fan. What really concerns me is that the powers which are supposed to oversee the financial institutions were either powerless to act or unwilling to act to ensure that the banks were not piling up huge mid term risk for which the consumer then must pay.
I think that almost everyone with an eye for true fundamentals (i.e. not the 'supply/demand' band) was aware that these loans were a bad idea. I cannot believe that the banks were not similarly aware so I must assume that they were aware of the potential issues and figured that they were so far in the crap that there was little more to lose.
I do not honestly believe that economists and those (generally) within finance were unaware of the problems. So why did these sort of practices continue? I can understand the banks because they are better taking a lot of risks that wont be realised for a years rather than acting cautiously and being dead and buried before the s%^& hits the fan. What really concerns me is that the powers which are supposed to oversee the financial institutions were either powerless to act or unwilling to act to ensure that the banks were not piling up huge mid term risk for which the consumer then must pay.
QUOTE (subby @ Feb 20 2008, 02:32 PM)
Major lenders Alliance & Leicester and Abbey both pulled the plug on the controversial 125% deals. The move came with banks and building societies already withdrawing 100% mortgages. Before Christmas, a third of lenders offered mortgages of 100% or more. Today, just one in ten do so.
To add to the gloom, a member of the Bank of England's monetary policy committee predicted last night that mortgages could become more expensive this year.
Kate Barker also warned of clear signs of a 'marked weakening' in the housing market. She blamed the severe problems faced by banks trying to borrow money since global markets were gripped by the 'credit crunch'.
The warning came on top of expert fears that newly-nationalised Northern Rock is about to raise rates for many of its borrowers, prompting other lenders to follow suit.
The 'super-size' 125% mortgages are often taken out by desperate young firsttime buyers and cash-strapped divorcees. They need the extra money for stamp duty, legal fees, decorating and other costs, but are instantly plunged into negative equity because the value of their home is less than the size of their loan. Now mortgage companies have finally caved into criticism that lending such huge sums is wrong.
Experts say there are two reasons for the retreat - lenders themselves are struggling to raise money for loans, and they are worried about handing it over to the highest-risk borrowers.
Alliance & Leicester was the first to make the move, axeing its 'Plus Mortgage' range which offered up to 125%. A few hours later, Abbey, the second-biggest mortgage lender, and Coventry Building Society said they will scrap their deals on Friday.
Northern Rock, which pioneered the 125% deal nearly a decade ago, is likely to follow in the next few days. That would leave just Birmingham Midshires with a 125% product, and it is unlikely to want to stand alone.
Analysts have already pointed to Alliance & Leicester as a lender that could experience similar problems to the Rock if the credit crunch continues, because it relies heavily on raising money from global money markets. The moves came amid warnings that the Northern Rock fiasco could trigger pain for mortgage holders across the High Street.
The bank is expected to move quickly to reduce its liabilities by slashing the size of its mortgage book. Industry insiders expect new chief Ron Sandler to try to persuade as many as half the Rock's mortgage-holders to take their business elsewhere by jacking up rates.
Tens of thousands of borrowers coming to the end of fixed-rate periods could be particularly badly hit. In turn, the increase in rates at Northern Rock could be used by other lenders as an excuse to do the same.
Tory spokesman Philip Hammond said last night: 'If any major lender decides to discourage customers from renewing when their fixed terms are up, that's bound to exert upward pressure on rates across the market.
Mortgage and property chat
Find out what readers are saying about mortgages, property and the housing market:
• Panorama - bursting the house price bubble
• Should you sell and rent back your home?
• Who should we remortgage with?
• How do I beat stamp duty problem?
• Shall I buy property in Bulgaria?
• Rightmove figures - right or wrong?
'Some people, particularly those with poor credit records, are sadly likely to find they are unable to continue with their mortgages.' Louise Cuming, head of mortgages at moneysupermarket.com, said: 'There's absolutely no doubt Northern Rock was walking a seriously risky tightrope.
'They were offering four or five times income. People who have borrowed a lot for their mortgages often don't stop there, and may have gone on to acquire other unsecured debts. There will undoubtedly be some who won't be able to rehouse elsewhere.'
Mega-mortgages have become common only over the last decade, fuelled by people's desperation to get onto the property ladder before prices soared further out of reach. Industry sources estimate up to 20,000 loans every year have been handed out to people borrowing 100% or more. But the numbers have slumped since last September's Northern Rock crisis.
Ray Boulger, from mortgage advisers John Charcol, warned: 'If a borrower gets into difficult with little or no equity in their home, they've got nowhere to go.' He said a falling housing market and homeowners with 100% or more mortgages can be a fatal combination. If they are forced to sell, they may have to cut 10% off the asking price to find a buyer - making it more likely the sale price will be lower than their loan.
There is another major concern for borrowers who have taken out such deals. When their initial two or three-year arrangement ends, they may struggle to find a lender willing to give them a similar mortgage. David Hollingworth, from mortgage advisers London & Country, said: 'If these deals do not return, borrowers are going to have to work a lot harder to reduce their debt.'
The decision to axe 100% deals will further turn the screw on first-time buyers, whose mortgage repayments account, on average, for a staggering 35% of their disposable income. The number of first-time buyers has already fallen to its lowest since 1980, according to research by the Halifax.
--------------------------------------------------------------------------------
MORTGAGE BROKERS BANNED
Two partners of a mortgage broking firm have been banned for helping customers make fraudulent mortgage applications. The Financial Services Authority (FSA) found that over a period of three years Amjad Malik and Tahir Mahmood, partners with Abbaci Associates in Ilford, Essex, had submitted applications on behalf of clients that included fake pay slips and lies about their occupations.
--------------------------------------------------------------------------------
Other stories:
Homes cost £7m in London's priciest street
What now for Northern Rock mortgages?
Overpaying is freeing our mortgage chains
Unsold homes rise as sellers fail to budge
House prices may fall, warns Mervyn King
How to buy a home at auction
Cerne Abbas voted most desireable village
Agents see sixth month of property gloom
Print
Read later
Mail to a friend
WANT TO KNOW MORE?Find the best mortgage for you
Would you be better off renting a home?
Has your mortgage rate been cut?
READER COMMENTS (6)
I had to laugh! Its about time this sorry state of affairs was bought to an end. But its OK, because there are always the 'sound fundamentals' which will help prop the market up! Is there any more desperate spin left to keep this thing going? We all know where its going.....time to sit back and watch the show!
- Darren, Plymouth
The 125% mortgage was obscene. Good riddance. Good to see that Northern Rock paid the price. There is some justice in the world.
- Pat Lyne, London
Reality is returning to the mortgage world. The problem is that prices in the past four years have been based on mad lending practices, combined with low interest rates. Once these props are removed, prices will have to drop. Apparently the number of new mortgages is back to the 1995 level.
- Surreyboy1, Surrey UK
Thats because they want a lot of their customers to go elsewhere, when they do then they will have to pay up in full, bringing in the revenue needed hopefully to pay back the taxpayer.
- Joe Brown, Bucks
'Mortgages which let people borrow more than the value of their home are being dramatically scrapped .... forcing would-be buyers to produce a deposit.'
That has a familiar ring about it. Oh, I remember now. Those are two of the conditions I had to fulfil 25 years ago in order to obtain a mortgage.
Isn't progress a wonderful thing?
- Tc, Leeds, U.K.
Quote "The warning came on top of expert fears that newly-nationalised Northern Rock is about to raise rates for many of its borrowers, prompting other lenders to follow suit" This is scandalous. First the government slaughters us with taxes, now they are attempting to force us out of our homes. It's going too far, we need a revolution now!
- Eric, Glasgow
To add to the gloom, a member of the Bank of England's monetary policy committee predicted last night that mortgages could become more expensive this year.
Kate Barker also warned of clear signs of a 'marked weakening' in the housing market. She blamed the severe problems faced by banks trying to borrow money since global markets were gripped by the 'credit crunch'.
The warning came on top of expert fears that newly-nationalised Northern Rock is about to raise rates for many of its borrowers, prompting other lenders to follow suit.
The 'super-size' 125% mortgages are often taken out by desperate young firsttime buyers and cash-strapped divorcees. They need the extra money for stamp duty, legal fees, decorating and other costs, but are instantly plunged into negative equity because the value of their home is less than the size of their loan. Now mortgage companies have finally caved into criticism that lending such huge sums is wrong.
Experts say there are two reasons for the retreat - lenders themselves are struggling to raise money for loans, and they are worried about handing it over to the highest-risk borrowers.
Alliance & Leicester was the first to make the move, axeing its 'Plus Mortgage' range which offered up to 125%. A few hours later, Abbey, the second-biggest mortgage lender, and Coventry Building Society said they will scrap their deals on Friday.
Northern Rock, which pioneered the 125% deal nearly a decade ago, is likely to follow in the next few days. That would leave just Birmingham Midshires with a 125% product, and it is unlikely to want to stand alone.
Analysts have already pointed to Alliance & Leicester as a lender that could experience similar problems to the Rock if the credit crunch continues, because it relies heavily on raising money from global money markets. The moves came amid warnings that the Northern Rock fiasco could trigger pain for mortgage holders across the High Street.
The bank is expected to move quickly to reduce its liabilities by slashing the size of its mortgage book. Industry insiders expect new chief Ron Sandler to try to persuade as many as half the Rock's mortgage-holders to take their business elsewhere by jacking up rates.
Tens of thousands of borrowers coming to the end of fixed-rate periods could be particularly badly hit. In turn, the increase in rates at Northern Rock could be used by other lenders as an excuse to do the same.
Tory spokesman Philip Hammond said last night: 'If any major lender decides to discourage customers from renewing when their fixed terms are up, that's bound to exert upward pressure on rates across the market.
Mortgage and property chat
Find out what readers are saying about mortgages, property and the housing market:
• Panorama - bursting the house price bubble
• Should you sell and rent back your home?
• Who should we remortgage with?
• How do I beat stamp duty problem?
• Shall I buy property in Bulgaria?
• Rightmove figures - right or wrong?
'Some people, particularly those with poor credit records, are sadly likely to find they are unable to continue with their mortgages.' Louise Cuming, head of mortgages at moneysupermarket.com, said: 'There's absolutely no doubt Northern Rock was walking a seriously risky tightrope.
'They were offering four or five times income. People who have borrowed a lot for their mortgages often don't stop there, and may have gone on to acquire other unsecured debts. There will undoubtedly be some who won't be able to rehouse elsewhere.'
Mega-mortgages have become common only over the last decade, fuelled by people's desperation to get onto the property ladder before prices soared further out of reach. Industry sources estimate up to 20,000 loans every year have been handed out to people borrowing 100% or more. But the numbers have slumped since last September's Northern Rock crisis.
Ray Boulger, from mortgage advisers John Charcol, warned: 'If a borrower gets into difficult with little or no equity in their home, they've got nowhere to go.' He said a falling housing market and homeowners with 100% or more mortgages can be a fatal combination. If they are forced to sell, they may have to cut 10% off the asking price to find a buyer - making it more likely the sale price will be lower than their loan.
There is another major concern for borrowers who have taken out such deals. When their initial two or three-year arrangement ends, they may struggle to find a lender willing to give them a similar mortgage. David Hollingworth, from mortgage advisers London & Country, said: 'If these deals do not return, borrowers are going to have to work a lot harder to reduce their debt.'
The decision to axe 100% deals will further turn the screw on first-time buyers, whose mortgage repayments account, on average, for a staggering 35% of their disposable income. The number of first-time buyers has already fallen to its lowest since 1980, according to research by the Halifax.
--------------------------------------------------------------------------------
MORTGAGE BROKERS BANNED
Two partners of a mortgage broking firm have been banned for helping customers make fraudulent mortgage applications. The Financial Services Authority (FSA) found that over a period of three years Amjad Malik and Tahir Mahmood, partners with Abbaci Associates in Ilford, Essex, had submitted applications on behalf of clients that included fake pay slips and lies about their occupations.
--------------------------------------------------------------------------------
Other stories:
Homes cost £7m in London's priciest street
What now for Northern Rock mortgages?
Overpaying is freeing our mortgage chains
Unsold homes rise as sellers fail to budge
House prices may fall, warns Mervyn King
How to buy a home at auction
Cerne Abbas voted most desireable village
Agents see sixth month of property gloom
Read later
Mail to a friend
WANT TO KNOW MORE?Find the best mortgage for you
Would you be better off renting a home?
Has your mortgage rate been cut?
READER COMMENTS (6)
I had to laugh! Its about time this sorry state of affairs was bought to an end. But its OK, because there are always the 'sound fundamentals' which will help prop the market up! Is there any more desperate spin left to keep this thing going? We all know where its going.....time to sit back and watch the show!
- Darren, Plymouth
The 125% mortgage was obscene. Good riddance. Good to see that Northern Rock paid the price. There is some justice in the world.
- Pat Lyne, London
Reality is returning to the mortgage world. The problem is that prices in the past four years have been based on mad lending practices, combined with low interest rates. Once these props are removed, prices will have to drop. Apparently the number of new mortgages is back to the 1995 level.
- Surreyboy1, Surrey UK
Thats because they want a lot of their customers to go elsewhere, when they do then they will have to pay up in full, bringing in the revenue needed hopefully to pay back the taxpayer.
- Joe Brown, Bucks
'Mortgages which let people borrow more than the value of their home are being dramatically scrapped .... forcing would-be buyers to produce a deposit.'
That has a familiar ring about it. Oh, I remember now. Those are two of the conditions I had to fulfil 25 years ago in order to obtain a mortgage.
Isn't progress a wonderful thing?
- Tc, Leeds, U.K.
Quote "The warning came on top of expert fears that newly-nationalised Northern Rock is about to raise rates for many of its borrowers, prompting other lenders to follow suit" This is scandalous. First the government slaughters us with taxes, now they are attempting to force us out of our homes. It's going too far, we need a revolution now!
- Eric, Glasgow
Subby,
Can you provide the link to the source for this article
i think its from here
QUOTE (doccyboy @ Feb 20 2008, 08:46 PM)
Welcome to the thread isellrice
Thanks doccyboy. I've been lurking about for a while, but i really like the separate Northern Ireland forum on here - so i think now's a good time to start contributing!
I'm quite pleased to see them getting rid of the 100% mortgages... i'll never forget last year when i was dead set on getting "on the ladder" to make a quick buck (everyone was thinking the same thing), i found out about 110% mortgages - it stuck out as being really fishy to me, so i ended up doing my homework and thankfully never took the plunge
IMO, this could really kick start the price crash in the rest of the UK. I believe the house price increases were driven by easy debt and the speculation that the house would gain value. As for NI, it will just add further downward pressure on an already steeply decreasing market. After hearing about 20% off prices already, I wouldn't be surprised to see the same feat repeated this year, before it starts to tail off.
These 100%+ options have suckered loads of people in as they became the only way to get on the housing ladder. As the media spoon fed us the crap about house prices only going up and no more boom and bust etc, many bought into the frenzy not wanting to miss the boat.
Now look at where we're at. Prices are tumbling and people have got wise to the fact that house prices don't only go up, but can come down too. In fact, now they're coming down, why would you want to get a monster 125% mortgage? Why would you even want a 100% mortgage? In both cases, you're likely to be in negative equity within a few months and who wants that?
With the rush to "not miss the boat" gone and with the realisation setting in, I think the last remaining potential FTBs are going to knock it on the head too. I don't expect there to be many FTBs until the prices are a lot less. Sure, a few may get suckered in by the bull trap (if it happens), but I think most will be happy to watch from the side lines and wait for the bargins in a few year's time. I mean, what's the rush? It's not like the prices are going up any more!
These 100%+ options have suckered loads of people in as they became the only way to get on the housing ladder. As the media spoon fed us the crap about house prices only going up and no more boom and bust etc, many bought into the frenzy not wanting to miss the boat.
Now look at where we're at. Prices are tumbling and people have got wise to the fact that house prices don't only go up, but can come down too. In fact, now they're coming down, why would you want to get a monster 125% mortgage? Why would you even want a 100% mortgage? In both cases, you're likely to be in negative equity within a few months and who wants that?
With the rush to "not miss the boat" gone and with the realisation setting in, I think the last remaining potential FTBs are going to knock it on the head too. I don't expect there to be many FTBs until the prices are a lot less. Sure, a few may get suckered in by the bull trap (if it happens), but I think most will be happy to watch from the side lines and wait for the bargins in a few year's time. I mean, what's the rush? It's not like the prices are going up any more!
QUOTE (Traktion @ Feb 21 2008, 11:34 AM)
IMO, this could really kick start the price crash in the rest of the UK. I believe the house price increases were driven by easy debt and the speculation that the house would gain value. As for NI, it will just add further downward pressure on an already steeply decreasing market. After hearing about 20% off prices already, I wouldn't be surprised to see the same feat repeated this year, before it starts to tail off.
Moreover, in the absence of capital gains, NI rental yields are so low as to effectively act as an additional cost compared to property on the mainland. Whatever happens in the mainland, NI will be notably worse.
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