Thursday, Jul 09, 2009
EAs want govt to pressure banks to aid the recovereh
Press Association: Quarter unable to get mortgages
Nearly one in four people claim they are unable to get a mortgage due to the tighter lending criteria being used by banks and building societies, a survey has showed.
Around 22.5% of people said they did not qualify for any of the mortgages that were currently available, according to the National Association of Estate Agents.
Peter Bolton King, chief executive of the NAEA, said: "We cannot let the banks convince us that shutting up shop when it comes to mortgage lending is a responsible move. The decision to restrict mortgages so severely is rooted in self interest. The Government must do more to put pressure on those banks that are refusing to lend, while highlighting those banks that are easing restrictions."
Posted by little professor @ 01:18 AM (695 views) Add Comment
9 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. gone-to-colombia said...
This has to be about right, around 25% or more should not be able to get a mortgage. These are the income and credit risks groups that
are better served by renting or social housing.
We would all be better off if mortgages were seen as something to be earned by hard work, savings and a good credit record, and not seen as a right for all.
2. Tennouji said...
"The decision to restrict mortgages so severely is rooted in self interest." So what does that make demanding that people take
out loans they can't afford in a falling market?
3. Neil B said...
"There are only 119 mortgages available to people borrowing 90% of their home's value, down from 1,152 in November 2007, with some lenders charging interest of more than 7% to borrowers with a 10% deposit"
The average salary hasn't moved between 2001 and now so if house prices came down to 2001 levels then a 10% deposit and 7% interest is achievable for most people.
4. sybil13 said...
"Peter Bolton King, chief executive of the NAEA, said: "We cannot let the banks convince us that shutting up shop when it comes to mortgage lending is a responsible move. The decision to restrict mortgages so severely is rooted in self interest."
Mmmm whilst giving 125% LTV's and 7x's loan to income 14x's for couples was responsible I suppose?
Whilst propping up the property market at hugely inflated values is responsible I suppose?
Surely the decision to increase QE to prop up the overvalued property market WOULD be "rooted in self interest".
Mr King famous for his, "The housing market is the engine of the UK economy" obviously didn't read this week that:
"New powers will be proposed to curb bank lending and prevent asset bubbles, such as the housing boom undermining the real economy."
Not that its likely to happen, but the BIG Q now is will the government give the lenders what they need to prop up the market for yet another year?
Or are they going to listen to Paul Fisher the BOE official who warned Darling "Not to Stop the Housing Crash" , the article warning that
property that had fallen 20% was still 40% overvalued.
5. alan said...
Yes Sybil13,
That's the BIG Q. The answer will be whatever is in the short term interest of the Labour Party.
Sorry to sound cynical, but I've watched this government for a while. I'm not saying Cameron will act any better when he takes charge at the next election.
6. mrr19121970 said...
Call me old fashioned or something, I've lived out of the UK for a long time now... but when you buy a house with a mortgage, the idea is actually to repay the capital loan, and not just the interest isn't it ?
7. hpwatcher said...
Good.
8. tenyearstogetmymoneyback said...
mrr19121970 said...
"Call me old fashioned or something, I've lived out of the UK for a long time now... but when you buy a house with a mortgage, the idea is actually to repay the capital loan, and not just the interest isn't it ?"
What a quaint idea. Lots of people think that the idea of home ownership is to maintain their loan at about 95% of the value of their house
using Mortgage Equity Withdrawl, spending all the money they withdraw on imported cars, foreign holidays or buy to let flats.
On a series of property programs recently there have been people who having bought their council houses at a subsidised price
(e.g £40000) now owe twice that and are facing repossesion.
The whole crisis began shortly after Northern Rock started its Together mortgage where first time buyers could borrow 125% of
the value of the house they were buying, so they could keep up with the MEWers next door.
Do a google UK search of
Houses as ATMs for more details
:- Duncan
9. Fladams said...
1 in 4 may claim that they cant get a mortgage but maybe they should look at buying something where their salary multiples work out........... or maybe wait for house prices to come down!