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Letting out the mortgage - The Independent - Saturday 4th November 1989

It is 1989, The buy to let idea had not been born. The BES - Business Expansion Scheme was still in vogue, however interest rates on mortgages were at 9.8 percent in May 1988, were facing a situation whereby they were paying 50% more.

In The Independent article featured here a young professional couple had overstretched themselves to buy a £300,000 dream house in South London.

They did not want to sell, so they did what a lot of people did, rent out the property and move abroad. Had they sold they would have made a great loss and we were then in the era of "negative equity".

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Philip Suter

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