Tuesday, Apr 29, 2008
New deals coming
Housefund: Nationwide first with package
Nationwide is the first to make an attractive package for first time buyers, news is a number will follow in the coming weeks
Posted by greenbay @ 09:07 AM (434 views) Add Comment
9 Comments
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1. Vindicated said...
Hey Greenbay!!! Welcome back! So nationwide are creating an attractive package for first time buyers... well, that'll make it all ok then!!! Woo hoo! As a potential first time buyer, I feel the sudden uncontrollable urge to rush out and get a mortgage now...... NOT!
No crash here... nothing to see.... move along now.......
2. paul said...
Welcome back greenbay! You've been very quiet of late.
So now, all Nationwide have to do is get first time buyers to actually buy property. While they are simultaneously reporting house prices in freefall according to their index. Good luck with that one. Yes, best of British luck for that.
3. jack c said...
greenbay - welcome back - you entered the debate on Sunday gone - techieman and myself both provided a reply to your postings but have since had no response - are you stumped ? The UK residential housing market is in danger of imploding (commercial property likewise) !
4. Ijjhall said...
Greenbay - Here's the Independent's take on the very same story : Oh dear...
Nationwide has defied the Government's latest efforts to ease the mortgage market squeeze by announcing plans to dramatic-ally tighten its lending criteria for new customers.
The building society has said that borrowers will need to double their minimum deposit to 10 per cent to be considered for most of its mortgage products from 1 May, ignoring the Government's attempt to lift mortgage and financial market tension with a £50bn injection last week.
5. Jackas said...
Greenbay, Greenbay
How green your bay is, how nice it must be
Greenbay, Grrenbay,
I want to rent one of your houses for 3% yield, are there any free?
Greenbay, Greenbay
How nice it must be when your bay is green
And the property sky is blue
And everybody loves you
Greenbay.
6. waiting for the crash said...
Is this a sign the mortgage contraction is starting to level off?
7. plato said...
I see the famous words : 'Prudent' and 'Sustainable' pop up again......... Well ignoring these!
The term LTV is the big stumbling block presently. Get it wrong --- and you will --- Then it's straight into Negative Equity ------- Not a good start for any FTB and not exactly designed to "support first time buyers".
Nice try and good news IF homes are at realistic prices........ Best then to wait for the market to settle......... about 2 years I suggest. Meanwhile I hear from a good scource that Rights Issues are popular.
8. new user 2007 said...
It is nice that on the same day that a BTL pyramid scheme files for bankruptcy that this happens. Hopefully a turning point, although I suspect we have many months to to go before the juggernaut moves from slowing down to reversing
What is interesting is that Greenbay, one of the very people saying BTL will gain as no one else can get a mortgage to buy, posts this (i.e. a story saying FTB are going to get access to mortgages).
What it leaves out, however, is the income multiple that this is all available on. 0% deposits were a key driver of price rises BUT a bigger one (amid stagnant wages) was rising income multiples. No mention of that...
I suspect the multiple is so low that most FTBs will find it useless (in the FT there are already, and have been for six months, similar rates, but they are only available to those with multiples iof under 3.5)
9. new user 2007 said...
This is pasted from another related story above. These are the details of what Nationwide is doing.
http://www.independent.co.uk/news/business/news/nationwide-doubles-the-deposit-required-for-new-mortgages-817351.html
So in addition to low income multiples, interest only is available only with an incredible 50% equity (another part of the "improved affordabilty" over the last few years was a move from capital repayment to interest only!