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Bbc: Nationwide Warns House Prices Will Likely Fall Further


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Has anyone dug down into their accounts?

edit:half year results here https://www.nationwi...3-november-2010

Is the profit improvement entirely down to the drop in bad debts or are they actually increasing lending? Reuters has a note in their analysis re the cap.

http://www.reuters.c...E6AM07C20101123

Looks like a good target for savers to pull out of.

A pledge for borrowers directly affecting savers....when really, they should be vying for savers, because of the way Government has skewed the market...they dont care.

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On wake up to money on fivelive they say this none movement will continue until something moves... in terms of demand and supply... which i am beginning to agree with. People aren't in any rush with rates so low and unless there is a huge swade in job cuts.... say 500k which panics everyone into sales... i just can't see any movement at all lol.

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On wake up to money on fivelive they say this none movement will continue until something moves... in terms of demand and supply... which i am beginning to agree with. People aren't in any rush with rates so low and unless there is a huge swade in job cuts.... say 500k which panics everyone into sales... i just can't see any movement at all lol.

It's possible we get a brief lull here but I think enough people have now figured out that this market is going down and only those that get out early have any chance of avoiding big loses. Unfortunately this will not be possible for the vast majority.

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It's possible we get a brief lull here but I think enough people have now figured out that this market is going down and only those that get out early have any chance of avoiding big loses. Unfortunately this will not be possible for the vast majority.

just wondering why there is anyone needing to get out..unless they are in dire financial straits...

course, if you live in an investment, then I can see the problem.

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Looks like a good target for savers to pull out of.

A pledge for borrowers directly affecting savers....when really, they should be vying for savers, because of the way Government has skewed the market...they dont care.

Looking at the income statement in the underlying profit analysis revenue is down but impairments have fallen too essentially at a faster rate. Net interest margin has fallen. But no surprise given that pledge, and with low interest rates there's little appettite for remortgaging.

Loans to customers are broadly flat.

Though the mix has changed in new business (BTL 28% from 18%, FTB 24% from 26%, homeowner 39% from 28%, remortgage 9% from 18%).

Average LTV for new business is 64%.

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interesting, so they probably WERE the biggest before all the bailouts etc etc.

some of those BTL names would be interesting to see how they are faring.... Bradford and Bingley.....GMAC, Kensington and Paragon come to mind

Probably not bigger than HBOS, i would imagine.

And while Santander aquired A&L, they did only get the savings arm from B&B (I see the mortgages are still on there).

NWide did take over a few tiddlers as well, didn't they? Might have boosted their book, somewhat.

No figures from me though. I am surprised that Santander are so low, but this is on the size of the total mortgage book, and I seem to recall that Abbey had taken a big chunk of new mortgages, so that might be what I am thinking of.

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just wondering why there is anyone needing to get out..unless they are in dire financial straits...

The housing market is not driven by people who want a house to live in - That's old world thinking.

In this new world houses are "investments" that in the long run always go up.

So what are people to do if prices start to fall? They must get out.

If you're suggesting that many can afford their mortgage and so will stay put I'm sure you are correct but they will be big losers.

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Not as ridiculous as your langauge. It's like a flat earth society on here sometimes.

Isn't it about time to stop using these endless, nonsensical diatribes ... 'the ships are going down, the banks are going down, the rats are leaving the sinking ship, we're only a breath away from collapse'

I've just been up to the High Street. Spooky! People wandering in and out of shops - spending money - going about their usual business. The world is collapsing yet everyone is going about their business like Stepford wives eh? And, on a housing estate near me, new houses are still selling at a steady rate.

I'm now more worried about a meteor hitting the earth than I am about deflation.

Who said anything about deflation? It's not as simple as that. For myself, I see massive inflationary driven prices rises on the horizon for all everyday essentials bought with cash (electronic or paper).

I also see massive deflationary driven price falls for all things bought with debt. That'll be houses then, amongst other things.

Not that the above will be of any comfort to the average citizen who will find it increasingly difficult to get credit on any terms and will also see their pay and conditionss fall. In case you didn't already know, it's only the bankers and bondholders who get bailouts, not us great unwashed

Edited by tallguy
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The housing market is not driven by people who want a house to live in - That's old world thinking.

In this new world houses are "investments" that in the long run always go up.

So what are people to do if prices start to fall? They must get out.

If you're suggesting that many can afford their mortgage and so will stay put I'm sure you are correct but they will be big losers.

That`s it, the first properties to fall will be the empty BTL flats, they are now a double LOSING BET due to voids and price depreciation, many, especially those on 90%/100%/125% loans will not have the stomach to hang on. Many will cling on to the primary home for a while longer, but this part of the ponzi will also crumble for the over-indebted as government help and jobs become scarce.

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Not as ridiculous as your langauge. It's like a flat earth society on here sometimes.

Isn't it about time to stop using these endless, nonsensical diatribes ... 'the ships are going down, the banks are going down, the rats are leaving the sinking ship, we're only a breath away from collapse'

I've just been up to the High Street. Spooky! People wandering in and out of shops - spending money - going about their usual business. The world is collapsing yet everyone is going about their business like Stepford wives eh? And, on a housing estate near me, new houses are still selling at a steady rate.

I'm now more worried about a meteor hitting the earth than I am about deflation.

If the Irish situation is not a "ship going down" I don`t know what is. What planet do you live on?

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Not as ridiculous as your langauge. It's like a flat earth society on here sometimes.

Isn't it about time to stop using these endless, nonsensical diatribes ... 'the ships are going down, the banks are going down, the rats are leaving the sinking ship, we're only a breath away from collapse'

I've just been up to the High Street. Spooky! People wandering in and out of shops - spending money - going about their usual business. The world is collapsing yet everyone is going about their business like Stepford wives eh? And, on a housing estate near me, new houses are still selling at a steady rate.

I'm now more worried about a meteor hitting the earth than I am about deflation.

Just had a toot of the crack pipe?

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Not as ridiculous as your langauge. It's like a flat earth society on here sometimes.

Isn't it about time to stop using these endless, nonsensical diatribes ... 'the ships are going down, the banks are going down, the rats are leaving the sinking ship, we're only a breath away from collapse'

I've just been up to the High Street. Spooky! People wandering in and out of shops - spending money - going about their usual business. The world is collapsing yet everyone is going about their business like Stepford wives eh? And, on a housing estate near me, new houses are still selling at a steady rate.

I'm now more worried about a meteor hitting the earth than I am about deflation.

so, 90bn to Irish Banks, 9 bn from us for Irish Banks, The FED being the largest holder of US debt, lending getting tough, and Alistair DArling stating that the DEFICIT is the big problem.

Id say, the ship was definitely holed, and the Captain has called for the pumps to Maximum.

Next wave could overwhelm.

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so, 90bn to Irish Banks, 9 bn from us for Irish Banks, The FED being the largest holder of US debt, lending getting tough, and Alistair DArling stating that the DEFICIT is the big problem.

Id say, the ship was definitely holed, and the Captain has called for the pumps to Maximum.

Next wave could overwhelm.

I reckon it will be all hands to the bowsers, they'll splice the mainbrace and batten down the hatches.

Thar she blows! Yee har, me hearties. Arr.

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On wake up to money on fivelive they say this none movement will continue until something moves... in terms of demand and supply... which i am beginning to agree with. People aren't in any rush with rates so low and unless there is a huge swade in job cuts.... say 500k which panics everyone into sales... i just can't see any movement at all lol.

What a fascinating insight, can't believe I missed it! :rolleyes:

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why haven't prices dropped like a stone here - like Ireland and the USA??? They have rock bottom interest rates too....

Because my friend we are living in an alternate reality and here is the proof

Bought for £332,500 in Oct 2008, you can check if you want, post code is BH31, Road is Little Dewlands and it's number 4.

http://www.rightmove.co.uk/property-for-sale/property-28059166.html

and by the miracle of the UK property market it has GAINED!!!! over £120k in the last 2 years

and Guess what, it hasn't sold, pure and utter madness!

Edited to remove blasphemy

Edited by Agent Provocateur
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Is this a groundhog day moment?

Nationwide Oct 2007

"Fionnuala Earley, the group economist at Nationwide, said: “We don’t think the market is going to crash, but prices will be flat next year"

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article2701985.ece

ooopppsss! Whatever happened to Fionnuala?

Edited by Redhat Sly
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"However it said price falls would not be as great as in 2008 due to low interest rates, which will restrict mortgage arrears and repossessions.

The society also said interest rates would probably stay very low for another year."

Put another way, they predict house prices will fall over 2011 slower than they fell in 2008 if interest rates stay at 0.5% for the next 12 months. They'll fall more steeply if interest rates go up.

Are the government really going to be able to keep interest rates at 0.5% for another 12 months?

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just wondering why there is anyone needing to get out..unless they are in dire financial straits...

course, if you live in an investment, then I can see the problem.

Maybe not getting out, but selling and scaling up is certainly a requirement. People in little box first time homes have or want to have kids and want a bigger place. They can only hang on so long. But this stock not shifting is like a giant load of faeces blocking the toilet. It doesn't have to be flushed, but if you leave it long enough, then when you do the enourmous tidal wave of cr*p floods the pipes in one giant stream of excrement and that's never going to be a pretty sight.

People hanging on in there is just going to make things worse for first time home owners. They are the ones that will bear the worst of it. It's a giant pyramid and they can't see that they are at the bottom pumping money all the way up to the top. I suspect they are hoping they aren't at the bottom and they will be a couple of layers up by the time it happens, but then again they aren't selling so there they sit.

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  • 415 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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