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Bo E Warns Of Greater Difficulty In Getting A Mortgage

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http://uk.finance.yahoo.com/news/bank-of-england-warns-of-greater-difficulty-in-getting-a-mortgage-tele-83c4ea90da7b.html?x=0

Bank of England warns of greater difficulty in getting a mortgage

Myra Butterworth, 9:56, Wednesday 14 July 2010

Home buyers are being warned that it will become more difficult to get a mortgage in the coming months as experts warned of a second wave of the credit crisis.

The Bank of England said the mortgages would be harder to obtain in the next three months amid fears of a "deterioration in the economic outlook.

It reported lenders expect to find it harder to secure the cash on the wholesale markets to fund loans, while there were growing concerns about households ability to keep up with their monthly mortgage repayments.

The warning comes amid consecutive rises in unemployment since the beginning of the year.

Melanie Bien, director at mortgage broker Private Finance, said: Just when it looked as though lending conditions were starting to ease, the Bank is warning that we could face a second credit crunch. For those borrowers who are already struggling to secure mortgage finance, this is nothing short of disaster.

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Maybe they have sucked in enough mugs who have bought in the last 2 years paying 30/40% deposits, so now they can let things slide a little.

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Maybe they have sucked in enough mugs who have bought in the last 2 years paying 30/40% deposits, so now they can let things slide a little.

If there is a shortage of funds, then any bank lending money should do so on the best economic terms available. That would mean with a larger deposit, and perhaps crucially, at a higher rate of interest.

So we may get a disconnect now between base rate and mortgage rates.

Savings rates are also likely to rise in a competition for funds.

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For those borrowers who are already struggling to secure mortgage finance, this is nothing short of disaster.

WRONG!

First up they are wanna be borrowers, not yet borrowers, and second, it is the opposite of disaster as it will protect them from taking out a huge debt that would burden them for years, throwing away saved cash into a dramatically reducing equity!

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WRONG!

First up they are wanna be borrowers, not yet borrowers, and second, it is the opposite of disaster as it will protect them from taking out a huge debt that would burden them for years, throwing away saved cash into a dramatically reducing equity!

++++++++++1

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Melanie Bien said: Just when it looked as though lending conditions were starting to ease, the Bank is warning that we could face a second credit crunch. For those borrowers who are already struggling to secure mortgage finance, this is nothing short of disaster.

Yeah, for her commissions.

She also said "Goo Goo Gaga"

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I would of thought if funds are limited it would be better to lend to business to create growth and employment, not for buying houses that do nothing to improve our economy except creating a need for higher wages to pay for overpriced bricks. ;)

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WRONG!

First up they are wanna be borrowers, not yet borrowers, and second, it is the opposite of disaster as it will protect them from taking out a huge debt that would burden them for years, throwing away saved cash into a dramatically reducing equity!

Bullseye!

This market must be starved of new meat so it dies.

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there saying on teh news that first time buyers need to save £37,000 before they can get a mortgage for their first home

oh great

thats how crazy things have become.

these 7ph youngsters. £37k.

may as well be £946k.

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http://uk.finance.yahoo.com/news/bank-of-england-warns-of-greater-difficulty-in-getting-a-mortgage-tele-83c4ea90da7b.html?x=0

Bank of England warns of greater difficulty in getting a mortgage

Myra Butterworth, 9:56, Wednesday 14 July 2010

Home buyers are being warned that it will become more difficult to get a mortgage in the coming months as experts warned of a second wave of the credit crisis.

The Bank of England said the mortgages would be harder to obtain in the next three months amid fears of a "deterioration in the economic outlook.

It reported lenders expect to find it harder to secure the cash on the wholesale markets to fund loans, while there were growing concerns about households ability to keep up with their monthly mortgage repayments.

The warning comes amid consecutive rises in unemployment since the beginning of the year.

Melanie Bien, director at mortgage broker Private Finance, said: Just when it looked as though lending conditions were starting to ease, the Bank is warning that we could face a second credit crunch. For those borrowers who are already struggling to secure mortgage finance, this is nothing short of disaster.

Lenders need to pay savers a decent rate on their savings to finance house purchase rather than get money on the wholesale market.there used to be thing called building society's

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WRONG!

First up they are wanna be borrowers, not yet borrowers, and second, it is the opposite of disaster as it will protect them from taking out a huge debt that would burden them for years, throwing away saved cash into a dramatically reducing equity!

Yes. Indeed if all those seeking finance, fail to get it, or as much as they want, then the laws of supply and demand mean that the price will actually change, and fall to a level at which their wealth and income, plus the finance, can afford it.

So they will get it anyway, but at a lower price.

Whats not to like?

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Yes. Indeed if all those seeking finance, fail to get it, or as much as they want, then the laws of supply and demand mean that the price will actually change, and fall to a level at which their wealth and income, plus the finance, can afford it.

So they will get it anyway, but at a lower price.

Whats not to like?

these people won't like it. 9apart from the ftb, that is.

Top tier of "ladder"

But my house is my Pension. I won't accept anything lower than one gazillion pounds before I retire to the Med. it's what it is worth and that's that.

Next tier of ladder

My house is worth half a gazillion pounds. i want to buy their house with my half a gazillion and i want to borrow half a gazillion too.

Bottom rung of ladder.

i had to lie on my mortgage application. i had to say i was earning a million pounds a year so I could b uy my 2 bed flat. it's worth a quarter of a gazillion now. i need more space, the mrs is preggers innit.

FTB waiting patiently for reality to return

Look you bunch of toolkits. I earn the average wage of £18k per year. I have a 20% deposit and the bank will only lend anyone 3.5 times their salary. there will be no self cert or interest only mortgages ever again. You're all going to have to lower your expectations massively and realise that "wealth" is no longer generated by doing F*CK ALL but sitting on your FAT USELESS ARSES waiting for your houses to increase in price. Your wealth is an illusion. get used to it.

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If there is a shortage of funds, then any bank lending money should do so on the best economic terms available. That would mean with a larger deposit, and perhaps crucially, at a higher rate of interest.

So we may get a disconnect now between base rate and mortgage rates.

Savings rates are also likely to rise in a competition for funds.

Base rate 0.5 mortgage rates from 2.5 -6 isn't there a disconnect now? :huh:

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Base rate 0.5 mortgage rates from 2.5 -6 isn't there a disconnect now? :huh:

Greg,

there is always a level of disconnect, mortgage rates have to be higher.

And banks have to have a differential between what they pay savers, and what they charge borrowers.

At the moment, the difference between BofE base and mortgage rates dont seem too great. But I am expecting that differential to increase, perhaps double, if the Bank of England wind down the Special Liquidity Scheme.

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Greg,

there is always a level of disconnect, mortgage rates have to be higher.

And banks have to have a differential between what they pay savers, and what they charge borrowers.

At the moment, the difference between BofE base and mortgage rates dont seem too great. But I am expecting that differential to increase, perhaps double, if the Bank of England wind down the Special Liquidity Scheme.

yeah, all those BoE Minus lifetime trackers were a great business deal.

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Bank of England interest-rate setter Adam Posen said that the economy could be at a tipping point.

Mr Posen commented in a speech that he had "laid awake for a number of nights" worrying about the state of the economy.

i wish he would just not bother

price fixing and central planning always ends in disaster

question is how long before the interest rate derivatives implode

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I would of thought if funds are limited it would be better to lend to business to create growth and employment, not for buying houses that do nothing to improve our economy except creating a need for higher wages to pay for overpriced bricks. ;)

Heretic, heretic.

Everyone knows what we need is a get rich quick scheme and housing and provided a get rich quick scheme the like of which has never been seen before!!!

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  • 140 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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