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About Ah-so

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    HPC Guru
  • Birthday 07/27/1910

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  1. Writing off IO mortgages (or giving people houses they haven't paid a penny for) would send several of our largest financial institutions insolvents. Writing off the old debts would not help them write new loans.
  2. And of course they can raise the deposit by remortgaging the primary residence.
  3. Have gone for June. The MPC will take any excuse not to raise rates
  4. "Buy-to-letters sometimes compete with first-time buyers for property—and they often win that contest, since they tend to have bigger incomes." This shows something of a misunderstanding. LLs have been able to outbid FTBs because of their access to interest only mortgages and not being constrained by MR stress rates. This approximately doubled their purchasing power.
  5. For people who don't really work for a living and who survive off of the backs of others, they have a lot in common with those that they feel deserve their opprobrium.
  6. They missed out some obvious ones email e.g. - reduce interest tax relief on BTL property to 0%. - increase CGT on 2nd properties to 95%.
  7. The Death of London

    They've only just raised them
  8. It is in the MMR but summarised here : https://www.mortgagefinancegazette.com/features/interest-only-mortgages-in-the-post-mmr-world-06-03-2014/
  9. The Death of London

    Ridiculous suggestion as he basically acknowledged in the opening comments on the ONS. It would not really lower the wage bill either - the most expensive staff are in the PRA who could not easily be moved and who have the most transferable skills anyway.
  10. The Death of London

    I second the Sultan - good pub in all seasons..
  11. Why do these people just happen to have a spare house to sell in the first place? Perhaps many inherited it and became fixed on the very first quotation from an EA. After learning the apparent value, they are determined to get that price because if they sell for anything less it means they are making a loss. Price anchoring is a classic bit of cognitive bias. EAs should under-value properties if they want them to actually sell rather than saying a high number that will make the customer happy.
  12. We have made this point in many our classic busts up below the line in the Telegraph. The response was always a varient on "yeah but...". This really stands for, "I have heard your argument and cannot argue with the logic so my brain will close up to the inconvenient truth and I will instead talk about something else, probably with a straw man argument." The usual dimwitted response is something like, "But FTBs cannot afford to buy, otherwise they would have done so already."
  13. Buy To Let Finance Watch

    I think that Nationwide increased their minimum LTV to 145% regardless of borrowers' tax band prior to SS13/16 but was in response to S24. In that sense they complied with its requirements prior to its release. In fact they went over and above. I heard that BTL lending fell so sharply and suddenly that even it was taken by surprise. But once SS13/16 came out, it was too late to backtrack.
  14. Bcbs Risk-Weights

    I have just checked - it is now 13.06%, so about a 40% increase on the capital they had to hold previously (http://www.lloydsbankinggroup.com/globalassets/documents/investors/2016/2016_lbg_pillar_3_report_v2.pdf (p.63) It would be nice to think that the PRA realised that holding fewer RWAs for BTL than prime residential was f***ing insane and told them to get real. I doubt the bank would want to do it voluntarily. And remember, this has happened at a time of rising house prices when LTVs are falling and the mortgage portfolio therefore supposedly becoming safer.
  15. Bcbs Risk-Weights

    It is a helpful ballpark figure from 2014, but I think that the RWA percentage for the LBG BTL portfolio is now quite a bit higher. Clearly the bank must have reassessed the amount of capital it holds against that portfolio for some reason