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40% Denied A Home If Bo E Caps Irresponsible Lending

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http://uk.finance.yahoo.com/news/mortgage-caps-40pc-could-be-denied-a-loan-tele-5113bf50d943.html?x=0

Mortgage caps: 40pc could be denied a loan
Estate agents express anger as bank prevents home ownership
Richard "Dickie Boy" Evans, 17:25, Wednesday 16 June 2010
As many as 40pc of home buyers could be shut out of the housing market if the Bank of England introduces mortgage caps.
Up to four in 10 people searching for mortgage prices online don't have a 25pc deposit, according to a leading price comparison website. This would mean they would not qualify for a mortgage if the Bank of England introduced "mortgage caps" restricting home loans to 75pc of the property's value.
Powers for the Bank of England to limit home loans are expected to be announced by the Chancellor, George Osborne,
in a speech to the City tonight.
But moneysupermarket.com, which carried out the research, said a cap would be "disastrous" and risked putting the housing market into "suspended animation" for many years.

Could risk putting the market on a plateau for years eh? Well, boo hoo, kin hoo.

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http://uk.finance.yahoo.com/news/mortgage-caps-40pc-could-be-denied-a-loan-tele-5113bf50d943.html?x=0

Mortgage caps: 40pc could be denied a loan
Estate agents express anger as bank prevents home ownership
Richard "Dickie Boy" Evans, 17:25, Wednesday 16 June 2010
As many as 40pc of home buyers could be shut out of the housing market if the Bank of England introduces mortgage caps.
Up to four in 10 people searching for mortgage prices online don't have a 25pc deposit, according to a leading price comparison website. This would mean they would not qualify for a mortgage if the Bank of England introduced "mortgage caps" restricting home loans to 75pc of the property's value.
Powers for the Bank of England to limit home loans are expected to be announced by the Chancellor, George Osborne,
in a speech to the City tonight.
But moneysupermarket.com, which carried out the research, said a cap would be "disastrous" and risked putting the housing market into "suspended animation" for many years.

Could risk putting the market on a plateau for years eh? Well, boo hoo, kin hoo.

would be nice if it put market at risk , cant see them doing anything to harm the housing market

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Far too many caveats in the proposal outlined in the newspapers. Can't see it having such a great affect.

The people should not fear their government but rather the government should fear their people.

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...surprised it's that low ....if you stress test the typical mortgage product over the next two to five years with the risk of IRs going up with little room for going down these lenders need to face reality....
:rolleyes:

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...no they will be renting which will become the norm.... :rolleyes:

Falling prices will result in reduced rent, allowing the time to save up for a deposit.

Rents are too high because house prices are too high.

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Guest sillybear2

Right, so inflating housing by 300% doesn't deny anyone a home... and if it does that should be solved by even more irresponsible lending :rolleyes:

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http://uk.news.yahoo.com/4/20100616/tuk-chancellor-to-announce-regulation-of-dba1618.html

Looks like the mansion house speech will be mostly waffle with no concrete measures to reign in liar loans and irresponsible lending levels.

I think the bottom line is that we are too dependent on HPI to risk setting off a crash. The market will have to do its work its own way and do it, it will.

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Blimey,

It's amazing that introducing a financial measure like this would destroy 40% of the houses in the country.

What we need a system where you don't need a deposit, can borrow over 100 % of the asking price on interest only and high multiple of imagined salary. Then everyone can afford a home or two and be wealthy.

But seriously. I'm quite happy for banks not owned or partially owned by the government to lend high LTV and salary multiples as long as those loans are clearly not subject to any taxpayer funded interest payments or delays on repossession and are entirely backed up by private payment protection insurance.

Y

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The rich are taking back their land.

Then education,

Then healthcare.

Pretty obvious they would do that after stealing as much as possible from the poor first.

It's what they do.............

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Blimey,

It's amazing that introducing a financial measure like this would destroy 40% of the houses in the country.

What we need a system where you don't need a deposit, can borrow over 100 % of the asking price on interest only and high multiple of imagined salary.  Then everyone can afford a home or two and be wealthy.

But seriously.  I'm quite happy for banks not owned or partially owned by the government to lend high LTV and salary multiples as long as those loans are clearly not subject to any taxpayer funded interest payments or delays on repossession and are entirely backed up by private payment protection insurance.

Y

Yes, that might be the way to go - make it compulsory, like car insurance. That system works pretty well, with very little room for manouevre by the insurers once a claim is made. Not a true comparison, but worth thinking about as a curb on reckless lending.

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...I'm quite happy for banks not owned or partially owned by the government to lend high LTV and salary multiples as long as those loans are clearly not subject to any taxpayer funded interest payments or delays on repossession and are entirely backed up by private payment protection insurance...

well indeed.

but a failing bank, unless it's a really tiny one, will probably always [regardless of any the measures that have been put in place to stop us getting into such situations, which clearly have a big role to play] have the taxpayer over a proverbial barrel, irrespective of what promises have been made in the past, because they can always play the [quite possibly true, arguably not properly tested] 'banks are different, the world will stop turning if a bank fails' card.

bank staff at all levels have no incentive whatsoever to ensure that lending isn't risky. they never did have one and the recent spate of bail-outs can surely only weaken such incentives in the future.

so, yeah, a 20% LTV rule would nudge both house prices and probably espcially the volume of transactions down for quite a few years and yes it might somehow even tilt the balance further away from owner-occupation to BTL [although this is by no means certain... i've seen it far too strongly asserted on here, and lest we forget the period of laxest lending ever also saw the % of UK households owning homes dip very noticably]... but it would very, very, significantly reduce the risk of future taxpayer-funded failures. both costs and benefits would need to be weighed up very carefully.

Edited by the flying pig

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Yes, that might be the way to go - make it compulsory, like car insurance. That system works pretty well, with very little room for manouevre by the insurers once a claim is made. Not a true comparison, but worth thinking about as a curb on reckless lending.

You mean like AIG?

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http://uk.news.yahoo...of-dba1618.html

Looks like the mansion house speech will be mostly waffle with no concrete measures to reign in liar loans and irresponsible lending levels.

I think the bottom line is that we are too dependent on HPI to risk setting off a crash. The market will have to do its work its own way and do it, it will.

hmm, all the banking criminals in one room....better send some rope.

Edited by Bloo Loo

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Yes, that might be the way to go - make it compulsory, like car insurance. That system works pretty well, with very little room for manouevre by the insurers once a claim is made. Not a true comparison, but worth thinking about as a curb on reckless lending.

Nice idea ...

Nice little earner for financial services industry :blink:

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http://uk.finance.yahoo.com/news/mortgage-caps-40pc-could-be-denied-a-loan-tele-5113bf50d943.html?x=0

Mortgage caps: 40pc could be denied a loan
Estate agents express anger as bank prevents home ownership
Richard "Dickie Boy" Evans, 17:25, Wednesday 16 June 2010
As many as 40pc of home buyers could be shut out of the housing market if the Bank of England introduces mortgage caps.
Up to four in 10 people searching for mortgage prices online don't have a 25pc deposit, according to a leading price comparison website. This would mean they would not qualify for a mortgage if the Bank of England introduced "mortgage caps" restricting home loans to 75pc of the property's value.
Powers for the Bank of England to limit home loans are expected to be announced by the Chancellor, George Osborne,
in a speech to the City tonight.
But moneysupermarket.com, which carried out the research, said a cap would be "disastrous" and risked putting the housing market into "suspended animation" for many years.

Could risk putting the market on a plateau for years eh? Well, boo hoo, kin hoo.

It is exactly the medicine I have been calling for! Au Contraire Dickie Boy. It is this sort of policy which will ultimately lead to prices matching sensible income multiples and keep them there! Regulation of Income multiples/LTV should be involved. Bring on a mortgage queue. Better to wait a bit sometimes and then be sure you can afford a home on your miserly post crisis income. Not just for the near term but also for the long term and for your kids and theirs. Speculating on homes should be largely over for all ordinary people outside very central London. Hooray for common sense!!!!!!!!!

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Prices will adjust, no one will be 'denied' anything.

:rolleyes: It's amazing how many people are so THICK they can't work that out.

HOWEVER: The ''market'' is completely rigged and pervaded throughout with VI Fraud, lies and cheating..... So the ''market'' isn't actually operating...

Edited by eric pebble

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http://uk.finance.yahoo.com/news/mortgage-caps-40pc-could-be-denied-a-loan-tele-5113bf50d943.html?x=0

Mortgage caps: 40pc could be denied a loan
Estate agents express anger as bank prevents home ownership
Richard "Dickie Boy" Evans, 17:25, Wednesday 16 June 2010
As many as 40pc of home buyers could be shut out of the housing market if the Bank of England introduces mortgage caps.
Up to four in 10 people searching for mortgage prices online don't have a 25pc deposit, according to a leading price comparison website. This would mean they would not qualify for a mortgage if the Bank of England introduced "mortgage caps" restricting home loans to 75pc of the property's value.
Powers for the Bank of England to limit home loans are expected to be announced by the Chancellor, George Osborne,
in a speech to the City tonight.
But moneysupermarket.com, which carried out the research, said a cap would be "disastrous" and risked putting the housing market into "suspended animation" for many years.

Could risk putting the market on a plateau for years eh? Well, boo hoo, kin hoo.

What time is said speech?

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:rolleyes: It's amazing how many people are so THICK they can't work that out.

HOWEVER: The ''market'' is completely rigged and pervaded throughout with VI Fraud, lies and cheating..... So the ''market'' isn't actually operating...

How big is your deposit right now?

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How big is your deposit right now?

FTBs needing a 25% deposit, which is probably 25% more than they currently need, would be met by firstrung housing falling in price....providing other government payments to prevent forced sales stopped.

FTBs are few and far between as it is.....homebuy type schemes keep the market propped.

course, if the first rung falls, the next ones will fall by even more.

everybody gains....bankers can sell more, smaller mortgages more cheaply, bankers will be more secure with better collateral, buyers can move up more cheaply, and sellers will be able to find a buyer.

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FTBs needing a 25% deposit, which is probably 25% more than they currently need, would be met by firstrung housing falling in price....providing other government payments to prevent forced sales stopped.

FTBs are few and far between as it is.....homebuy type schemes keep the market propped.

course, if the first rung falls, the next ones will fall by even more.

everybody gains....bankers can sell more, smaller mortgages more cheaply, bankers will be more secure with better collateral, buyers can move up more cheaply, and sellers will be able to find a buyer.

Exactly, title should read "40% of sellers denied boom prices for their Home, boo Hoo" laugh.gif

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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