deflation
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Posts posted by deflation
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A no-profit business. Hmm.
Where is his income then? I know you mean that he makes no profit
'on paper' but surelytrhe business has to be sold on or profits realised at some point?
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The quickest way to reduce BTL speculation would be to disallow mortgage interest as tax deductable. This would
reduce yields immediately and only leave professionals
in the market of BTL. -
Is it time to move this thread?
House Price relevance anyone?
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The public at large, well those who watch Working Lunch anyway, now know.
They just announced the last 125% loans on the market (Birmingham Midshires, part of Halifax I think) have been pulled.
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No live feed because it isn't live. Filmed this evening though, a few hours ago. They showed a clip of it on the 10 o'clock news
last week,before it had been on it, if you get my drift!
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I'm with British Gas and have my bills online. Works out competitive, as long as you have Gas AND Electricity with them.
NO, I DON'T work for them.
Price is 4.1 p per kw for the first 1400kW per quarter, then 2p per kW. A bit @rse about face though I think,
the more you burn, the cheaper it gets?!?!
Also. no standing charge. Remember the days when you paid for the privilege of the supply even if you used 0?
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For multiples, about 12 months ago, the small mutual BS round the Midlands were only going to a maximum
of 3.6 x salary for LTV below 95%. I was looking at the time!
Only the ever pressing requirement for higher multiples and the feeling they were missing out on business led them to
change their criteria. Not sure of the exact date but sometime last Spring, the Dudley BS suddenly allowed 4.5 x salary.
The West Brom BS are at time of writing allowing 3 x joint or 4 + 1. Special cases allowed of course, i.e. potential for liar loans still!
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Apologies for the incorrect umbrage, reading it again, I misunderstood.
With over 2000 posts to his name, I thought it was a comment to me.
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From a very amateur, and recently interested, armchair economist...
The reason people say that falling base rates from the BoE won't lead to cheaper borrowing include:
1. Huge capital losses arising from defaults which affect all banks internationally (since risk has become highly distributed in a global sense) - earnings per loan must increase in order to re-build capital after write downs.
2. "Spreads" are widening as are "Default swaps" - i.e. the cost of reassuring lenders that a loan will be repaid is increasing.
Reducing the BoE base rate will have the effect of lowering the cost of servicing a mortgage - but this effect is more than balanced by other factors.
I think that the biggest issue will be not the rate of interest, but the nature of risk estimation by lenders.
I am aware of all the points above, I opened the topic to see if the fact that a small provincial BS is not reducing its rates by the full 0.25% rate cut is common elewhere. Mutuals have, by reputation, (although perhaps misguided) been more prudent with their lending. I, for one, still think 4.5 times a salary is too much (hence the sarcastic hoorah).
I also fail to understand why I received such patronising statement since the more users of this site 'spread the word' and use the links to petitions, etc. the better. I would hope this site does not become a site for 'experts', their buddies and 'told you so' users.
I was involved in the last property crash, selling my house for exactly £200 profit in 1993 after owning it for 5 years, so I've been interested for quite a while!
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First post after watching this site for several months. Finally got round to registering. I can see that there are many economists on here
who sometimes lose me so please be gentle if you feel this is 'old news.'
Some information from one of my local Building Societies that I was passing yesterday, the Dudley BS. Their SVR has been reduced by 0.20%
(although website still showing it as 7.49%) and whilst I agree with other posters who reckon that banks and BS won't (or can't) pass on
the rate cut, has anyone got evidence on this? I believe many providers raised their rates prior to the MPC cut, just to reduce it afterwards.
As far as multiples are concerned, they will lend 4.5 times salary but ONLY if LTV is below 80%. If 80 - 95%, max is 4 x salary.
NOTHING beyond 95%
Hoorah for proper mutuals!
Norwich & Peterborough Reposessions
in House prices and the economy
Posted
I dis the same for 12 months with Lloyds. The problem with only being allowed to put in £250 pm is that the interest is being sort of 'drip fed'.
After 12 months, having deposited £3000, the total gross interest was £139 ish.