Valerius Posted May 7, 2009 Share Posted May 7, 2009 The last chance the bears had was to keep deposits high.But even that slim hope is now slowly evaporating. Not only that, they were expecting mass repos, banks collapsing, stock market down to zero... Looks like it was just a wet dream after all Quote Link to comment Share on other sites More sharing options...
Pindar Posted May 7, 2009 Share Posted May 7, 2009 how on Earth do they think that a loan is a "product".I lent my wife my body the other night....is that a product? Depends how it was packaged. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted May 8, 2009 Share Posted May 8, 2009 Depends how it was packaged. Pathetic isn't it! Quote Link to comment Share on other sites More sharing options...
Number79 Posted May 8, 2009 Share Posted May 8, 2009 http://news.bbc.co.uk/1/hi/business/8037347.stmMortgage lenders have started to relax slightly the requirements they need for granting a home loan, figures indicate. Two-thirds of mortgage deals still require borrowers to put down a deposit of at least 25%. But figures from the financial information service Moneyfacts show a recent rise in the number of deals demanding smaller down-payments. The total number of mortgage deals has risen by 7% in the past month, with more needing only a 15% or 20% deposit. More signs we are close to the bottom! nope, just more evidence that the banks expect further falls and are trying to suck in the lat of the bulls before the trap is sprung Quote Link to comment Share on other sites More sharing options...
Number79 Posted May 8, 2009 Share Posted May 8, 2009 Not only that, they were expecting mass repos, banks collapsing, stock market down to zero...Looks like it was just a wet dream after all patience young grasshopper, early days yet, just look at the states who are far better placed to deal with this. women must love you, talk about premature Quote Link to comment Share on other sites More sharing options...
singlemalt Posted May 8, 2009 Share Posted May 8, 2009 Wow! Bulls doing high-5's over increasing mortgage availability without considering the Bearish reasons behind it. It's funny how the number of mortgages requiring a lesser deposit creeps slightly up MoM in a similar way that house prices creep down MoM. What do you reckon? Houses becoming more affordable maybe? Mostly they're still outside of the x3.5 range that most lenders are willing to offer. btw how many ftb's do you think are out there that can muster up even a 15% deposit? how many existing home-owners are in NE? Quote Link to comment Share on other sites More sharing options...
Number79 Posted May 8, 2009 Share Posted May 8, 2009 Wow! Bulls doing high-5's over increasing mortgage availability without considering the Bearish reasons behind it.It's funny how the number of mortgages requiring a lesser deposit creeps slightly up MoM in a similar way that house prices creep down MoM. What do you reckon? Houses becoming more affordable maybe? Mostly they're still outside of the x3.5 range that most lenders are willing to offer. btw how many ftb's do you think are out there that can muster up even a 15% deposit? how many existing home-owners are in NE? how many need to sell but can't because they can't afford to accept what is being offered? lenders svr's ig going to kill them off when their deals run out Quote Link to comment Share on other sites More sharing options...
Harry Monk Posted May 8, 2009 Share Posted May 8, 2009 Since a bog-standard mortgage requires a 20% deposit, banks presumably expect further falls of 20%, or at least that they are prepared to take a chance on houses only falling by that much more, and advance money to anyone with an unblemished credit record and verifiable income. Quote Link to comment Share on other sites More sharing options...
spivT Posted May 8, 2009 Share Posted May 8, 2009 btw how many ftb's do you think are out there that can muster up even a 15% deposit? how many existing home-owners are in NE? i think a fair amount can. That's the problem for the bulls, as it blasts much of their argument out of the water. The unassisted or non-STR ftb is indeed a rare beast. Most ftb's in recent years have relied on having family support in terms of deposit, combined with what deposits they've managed to put away themselves and therefore 15%-20% is not an unreasonable figure. It certainly doesn't freeze out as many ftb's as it does freeze out speculative rank amateur investors. where the bulls make a fatal error is comparing a historical norm of 95% LTV as appropriate in an era where prices have by such a huge margin outstripped earnings and inflation in the wider economy. What is gone, and what contributes in part to the decline in approvals, is the dampening of mania and group think which encourages speculative investment. If hpi becomes an unstoppable force that mere minor recessions cannot halt even ftb's with 15%-20% deposits overpay for fear of how much they'd lose by delaying purchase. in deflation, buyers do the opposite. holding off purchasing in anticipation of further price falls. If indeed this housing market has a V-shaped bounce back then there's zero hope for the housing market, i believe that is why one of the BoE's mpc members' cautioned against attempting to artificially put a stopper on the decline. It stores up a bigger problem for later on. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted May 8, 2009 Share Posted May 8, 2009 Wow! Bulls doing high-5's over increasing mortgage availability without considering the Bearish reasons behind it.It's funny how the number of mortgages requiring a lesser deposit creeps slightly up MoM in a similar way that house prices creep down MoM. What do you reckon? Houses becoming more affordable maybe? Mostly they're still outside of the x3.5 range that most lenders are willing to offer. btw how many ftb's do you think are out there that can muster up even a 15% deposit? how many existing home-owners are in NE? Sad, i'n't... Quote Link to comment Share on other sites More sharing options...
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