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Sellers Asked To Slash Prices 20%.... Lloyds Adds £5,000 To Home Loans..., Etc

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Today's Sunday Times is full of interesting articles.

I have bought the paper, but, sorry cant provide you with a full online link to what I've read, because, being the Times, you now need to pay to get it.

http://www.thesundaytimes.co.uk/sto/

1) An article entitled "What's happened to the autumn housing rally", tells us that there is a "chronic shortage of buyers" across the mainsteam residiential market, so sellers are being told by their estate agents to slash their asking prices, They quote an estate agent who is telling clients that if they want to sell, they need to slash their prices now, and that he is seeing a "move to cut prices by up to 20% to get sales."

Could it now be, that any hpc'er offering a 30% off, is being too generous? :lol:

2) Another article tells us how Lloyds have added more than £5,000 to a typcial homeloan in the last 2 years, and RBS are also pocketing heavy margins on its average 5 year fix, by putting them up 1.1 points to 3.67 now. .

3) Their business section has an article about QE, questioning what happened to the £200 billion. Apparently a few weeks ago 150 academics and economists met at the B of E. "I had arrived expecting to be told what the impact ot QE had been, " said one. "It soon became clear the the Bank's brightest were not really sure and were asking us all what we thought".

Unbelievable. So they have spent £200 billion and haven't a clue what they have achieved, yet then the article tells us that BNP expects there will be another "aggressive" round of of QE, worth up to £100 billion. :rolleyes:

4) Another article, "Double-dip fears mount", tells us many experts have now revised down their expected growth for 2011.

5) An article entitled "food prices to soar", due to floods, higher wages in China, and the failure of key harvests.

6) An article about a doorstep lender, Cattles, (who lends to people with poor credit history), face administration and the loss of 3.000 jobs, with 160,000 investors wiped out, due to its own debts and losses.

7) David Smiths' article is entitled "making the case for a rise in interest rates", and discusses reasons for possible interest rate hikes.

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Thanks. I'll buy the times today then I think.

+1

Of course the BOE have no idea about what affect the QE has had on the economy - it was an emergency act of desperation and, let's be blunt, they ismply gave all the QE to the banks so it has had virtually no effect on the wider economy.

The 20% reduction in asking prices is very interesting - can you post a bit more about what was said in regard to this please?

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Today's Sunday Times is full of interesting articles.

I have bought the paper, but, sorry cant provide you with a full online link to what I've read, because, being the Times, you now need to pay to get it.

http://www.thesundaytimes.co.uk/sto/

1) An article entitled "What's happened to the autumn housing rally", tells us that there is a "chronic shortage of buyers" across the mainsteam residiential market, so sellers are being told by their estate agents to slash their asking prices, They quote an estate agent who is telling clients that if they want to sell, they need to slash their prices now, and that he is seeing a "move to cut prices by up to 20% to get sales."

Could it now be, that any hpc'er offering a 30% off, is being too generous? :lol:

2) Another article tells us how Lloyds have added more than £5,000 to a typcial homeloan in the last 2 years, and RBS are also pocketing heavy margins on its average 5 year fix, by putting them up 1.1 points to 3.67 now. .

3) Their business section has an article about QE, questioning what happened to the £200 billion. Apparently a few weeks ago 150 academics and economists met at the B of E. "I had arrived expecting to be told what the impact ot QE had been, " said one. "It soon became clear the the Bank's brightest were not really sure and were asking us all what we thought".

Unbelievable. So they have spent £200 billion and haven't a clue what they have achieved, yet then the article tells us that BNP expects there will be another "aggressive" round of of QE, worth up to £100 billion. :rolleyes:

4) Another article, "Double-dip fears mount", tells us many experts have now revised down their expected growth for 2011.

5) An article entitled "food prices to soar", due to floods, higher wages in China, and the failure of key harvests.

6) An article about a doorstep lender, Cattles, (who lends to people with poor credit history), face administration and the loss of 3.000 jobs, with 160,000 investors wiped out, due to its own debts and losses.

7) David Smiths' article is entitled "making the case for a rise in interest rates", and discusses reasons for possible interest rate hikes.

just bought it , first time for ages,

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6) An article about a doorstep lender, Cattles, (who lends to people with poor credit history), face administration and the loss of 3.000 jobs, with 160,000 investors wiped out, due to its own debts and losses.

I wonder if any of the 160,000 creditors are tempted to go round to Cattles' former CEO's house and break his legs?

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I wonder if any of the 160,000 creditors are tempted to go round to Cattles' former CEO's house and break his legs?

:D

Nah.... They should go round to his house and FORCE HIM to take out a

£3,000,000 LIAR LOAN....

And then tell him - he is going to eat SH1T for the rest of his life...... or starve. ;)

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:D

Nah.... They should go round to his house and FORCE HIM to take out a

£3,000,000 LIAR LOAN....

And then tell him - he is going to eat SH1T for the rest of his life...... or starve. ;)

LOLZ :lol:

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6) An article about a doorstep lender, Cattles, (who lends to people with poor credit history), face administration and the loss of 3.000 jobs, with 160,000 investors wiped out, due to its own debts and losses.

Sorry to rain on your parade, but Cattles died back in spring of last year. Their shares were suspended 17 months ago. Old news.

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:D

Nah.... They should go round to his house and FORCE HIM to take out a

£3,000,000 LIAR LOAN....

And then tell him - he is going to eat SH1T for the rest of his life...... or starve. ;)

was that wording taken straight out of a 2005 bradford and bingley mortgage brochure with a fit bird on the cover?

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was that wording taken straight out of a 2005 bradford and bingley mortgage brochure with a fit bird on the cover?

Yeah! :D Just slot the word "cake" where I've put "sh1t" - and that is what Bradford & Bingley were SCREAMING out from every nook and cranny not so long ago.... I shall NEVER, EVER forget parking my car opposite a B&B branch in about December 2006 - and the windows were COVERED with posters telling all and sundry to become "INVESTOR LANDLORDS" /"BTL Investor Landlords make your fortune" [etc etc.].......

And - I have to admit - I was SORELY tempted to locate a brick and throw it full pelt at that window...... It just P1SSED ME OFF SO MUCH.....

Anyhow.... :rolleyes: - What happened to Bradford & Bingley not so long after that?..........

HA!!!!!! They went BUST!!

W A N K E R S!!!

B)

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September 29, 2008

Bradford & Bingley made every mistake in the book

David Wighton, Business and City Editor - The Times.

Bradford & Bingley. The name said it all: safe, dependable, just a little bit dull. Northern Rock, the same. Solid, not flashy.

And that is what they were when they were building societies, owned by their depositors and borrowers. But safe became old-fashioned. Safe was economically inefficient.

So both were liberated from the restrictions of their mutual status and turned into stock market-listed banks during the wave of demutualisations in the Nineties. But the process has been an unmitigated disaster. All these banks have either collapsed – Northern Rock and Bradford & Bingley – or been bought up in various states of distress – Alliance & Leicester and HBOS.

The only winners were their senior executives, their City advisers and the few members who cashed in their windfall early when they became shareholders.

The losers include thousands of employees whose jobs will be cut, bank customers who will suffer from reduced competition, and taxpayers whose losses could run into billions. Nationwide, the one big building society that resisted the temptation to sell out, is still going strong.

The former building societies tended to make three big mistakes once they were let loose in the exciting new world of public companies. B&B made them all.

In a dash for growth, they tried to find areas of the mortgage market that were underexploited. In the end, they found that they were underexploited for a good reason.

B&B carved out a niche in lending to buy-to-let landlords and to borrowers who could not, or would not, provide evidence of their earnings. These self-certified mortgages, dubbed “liar loans”, are going bad in much higher numbers than ordinary mortgages.

:wacko::wacko::wacko::wacko:

Escaping the building society shackles meant that the new banks no longer had to rely on savers’ deposits to fund their mortgages. To finance their growth, they borrowed money on the City’s wholesale markets. When the credit crunch struck, these markets dried up and the likes of Northern Rock ran out of money.

The third mistake B&B made was to try to boost its returns on the cash it was holding by putting it into “exotic investments” based on American mortgages. The returns were substantial for a while. Then, so were the losses.

Britain’s established high-street banks made many of the same mistakes. But they are much less dependent on the sickly housing market.

The good news is that, assuming the HBOS takeover by LloydsTSB goes through, there are now no big British banks on the critical list. The bad news is that plenty of big banks elsewhere in the world are.

Last week the US Government seized control of Washington Mutual – a huge mortgage lending bank – in a move that not only wiped out the bank’s shareholders but also left the financial institutions from which it had borrowed its money nursing losses running into tens of billions of dollars.

That will make such institutions even more nervous about lending to other banks, thereby making the credit crunch that much worse.

As the B&B crisis was reaching its climax in Britain yesterday, government officials in the US and Belgium were involved in talks to agree on the rescue takeovers of two much bigger banks, Wachovia and Fortis.

Even if the $700 billion (£380 billion) US bank bailout plan is signed into law, these rescues are unlikely to be the last.

http://business.timesonline.co.uk/tol/business/columnists/article4842838.ece

Edited by eric pebble

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Just read the article in The Sunday Times in Tesco.

Interesting that a couple of EAs are now openly talking about 20% reductions in asking prices, one mentions that they over-valued houses at the start of the year. No kidding!?

Also one mentions that the hoped for surge in buyers once August was over has not materialised. I think this was also mentioned around the time of the RICS report out last week also.

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Just read the article in The Sunday Times in Tesco.

Interesting that a couple of EAs are now openly talking about 20% reductions in asking prices, one mentions that they over-valued houses at the start of the year. No kidding!?

Also one mentions that the hoped for surge in buyers once August was over has not materialised. I think this was also mentioned around the time of the RICS report out last week also.

yeah i think 20% off is the norm now, most will be expecting it

after the new year i am going to be putting in 30-40% off offers

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Page 2 of the Money Section (buried in the boxed text unfortunately) contains this little nugget:

Over three years shares are down 10.4% while house prices have fallen 15.9%

In the interest of balance, the figures quoted for one year is +4.6% and five years is +1.3%, which are still poor rates of return. Dunno if these are a reflection of real or nominal prices though. The biggie, at the bottom of this box, says house prices are up a whopping 98% over the last ten years

Edited by rantnrave

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Today's Sunday Times is full of interesting articles.

I have bought the paper, but, sorry cant provide you with a full online link to what I've read, because, being the Times, you now need to pay to get it.

http://www.thesundaytimes.co.uk/sto/

.

Are you a stooge for the Times trying to persuade us to subscribe?

tim

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yeah i think 20% off is the norm now, most will be expecting it

after the new year i am going to be putting in 30-40% off offers

I would go with the 40% off. I truly believe that the door closed on 20% off as a way for the masses to sell a couple of years ago. Big wakey wakey coming for wannabe sellers IMO.

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Just read the article in The Sunday Times in Tesco.

Interesting that a couple of EAs are now openly talking about 20% reductions in asking prices, one mentions that they over-valued houses at the start of the year. No kidding!?

Also one mentions that the hoped for surge in buyers once August was over has not materialised. I think this was also mentioned around the time of the RICS report out last week also.

Hi TMT,

If this is not too much of a trouble, do you mind scanning and uploading this piece of gem ?

Edited by easybetman

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I would go with the 40% off. I truly believe that the door closed on 20% off as a way for the masses to sell a couple of years ago. Big wakey wakey coming for wannabe sellers IMO.

it has that feeling...

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A get rich quick scheme goes bust. Imagine what a shock this must have been to those economic giants of foresight at Labour HQ and the BOE.

Nah... They're such a load of stupid dumbasses - they wouldn't see a Tiger Tank if it was inches from their faces, about to grind their thick skulls into the ground.... :rolleyes:

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  • 150 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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