Friday, Oct 19, 2007
40% slump in mortgage offers:fact not fiction!
citywire.co.uk: mortgage offers slump 40%
unbelievable ........this is gonna have a dramatic effect on the housing market especially when it seems half the population are bad credit risks!according to the papers
Posted by taffee @ 12:41 PM (998 views) Add Comment
9 Comments
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1. Jamest said...
It’s not a ‘40% reduction in mortgage offers’…………it’s a 40% reduction in the range of mortgages on offer… the two things are very different!!!!! It indicates that as lenders re-evaluate risk, they are withdrawing some of the riskier packages….
2. Cp2007 said...
err............did you actually read this? Its a 40% drop in mortgage products not mortgage offers ..... slight difference!
3. Narrowescape said...
Errm. It's actually a 40% drop in available mortgage products. While this may (hopefully) lead to a decline in the number of offers because fewer people can afford higher rates or qualify for the tougher requirements the article makes no reference to the actual number of offers made to people seeking mortgages.
To be fair, the headline of the article is ambiguous but anyone expecting to read that nearly half of mortgage offers have been refused is going to be very disappointed.
4. converted lurker said...
mate this story is 2-3 day old, do keep up;¬) What is nice is that 72% of non prime BTL mortgage producs have been killed.
5. Ceanothus2 said...
This article is talking about products, not offers.
6. Axxo said...
I'm an estate agent, just lost sale today because the BTD ( buy to debt ) purchaser had his fifth mortgage rejected....
7. Robbie said...
This is big news! Although the story is not new, we've been hearing more and more about financial institutions tighting their lending criteria, and this is going to have a massive impact on the property market. As potential buyers maximium amount they can borrow is greatly reduced, they'll have less cash to offer for purchases. This in the short term can only lead house prices in one direction and sellers are going to have to be more realistic about the price of their property if they want to sell it in the near future. I suspect many sellers will hold out for the price they want and in the meantime likely buyers will no option but to put their home buying aspirations to one side, and start a save a see mentality.
Just imagine the average house price being £200,000 for instance, and your 100% mortgage is turned down by your bank for an 85% mortgage. You'll need to conjure up £30,000 from somewhere to buy, and it could take a couple of years to save a deposit that big.
8. wiltshire said...
Hey Axxo, I don't mean this as a mickey take but what are things like for you guys at the moment? I'm genuinely interested to know what things are like for someone "in the eye of the storm". It is all doom and gloom or are you getting enough interest in properties that things are maybe a bit slower than usual but nothing to worry about? How do you see things in say 6 months?
9. Axxo said...
Wiltshire....
Doom and gloom... we haven't sold a property in 22 days this is in central london! Every buyer we speak to is worried they are buying in the peak of the matrket and might not even have a job this time next year ( we sell lots to hedge fund managers, finance guys etc ) Buyers that brought between Jan and June 07 are in serious neg equity ( 10% min ) In the next six months with the media's help we will see a fall of about 15-20% min, even if the prices fall by this much now, there is still no guarantee of selling the property... This is very very bad for everyone, because if the market stops so does the money and then so does the economy and employment....