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classixuk

Halifax House Price Increases...

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Just a thought here, but...

Imagine that you're the MD of a company that's involved in the mortgage lending business. In the past couple of years you have witnessed your market shrink by up to 2 thirds. You know the only way to get back to normal will be if more people can realistically afford your products (mortgages).

Your main problem however is that the Bank of England have a VI in keeping those prices as high as possible. You know that if you even suggest that they could be falling that the BOE will reduce the interest rates in the vain hope that the price won't drop any further, leaving you stuck for another quarter with hardly any customers.

It's 2 days before the BOE makes their decision. Do you give them a reason to intefere with your plans or polish up the report to ensure they don't meddle any further and sustain such poor levels of turnover?

When mortgage interest rates are 5%, 800 FTB buying at £200,000 is not nearly as profitable as 1600 FTB buying at £150,000!

Every business knows that the secret to success is turnover. Why should Halifax be any different? Does anyone really believe that Halifax would want to maintain a formula where Higher Prices = Lower Turnover/Profit?

Maybe the small increase reported in house prices was to deter the BOE, rather than attract new customers.

Just a thought.

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  • 301 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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