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Ministers Want To Know Why Lenders Are Not Helping F T Bs

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8284590/Lenders-challenged-over-first-time-buyers.html

Mortgage lenders are being hauled before ministers to explain why they are refusing to lend money to first-time buyers with impeccable credentials.
The patience with banks and building societies has finally snapped and a meeting will take place next month in which the lenders will be asked to explain away record low figures for mortgages.

Nothing to do with the fact the market is crashing then? Stupid ignorant vested interested prats.

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Grant Shapps, the Housing Minister, will demand answers to why the average age of a first-time buyer is now 37.

He must be joking right? This is unbelievable--I am going to write to my MP with the simple answer to their questions.

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http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/8284590/Lenders-challenged-over-first-time-buyers.html

Mortgage lenders are being hauled before ministers to explain why they are refusing to lend money to first-time buyers with impeccable credentials.
The patience with banks and building societies has finally snapped and a meeting will take place next month in which the lenders will be asked to explain away record low figures for mortgages.

Nothing to do with the fact the market is crashing then? Stupid ignorant vested interested prats.

Shapps is weird. I don't get it. Both Cable and Cameron (during PMQ) this week have said that the main cause of the bust was the credit/HP boom.

Re. the Telegraph article, great comment by a "Tom Sears". We should "recommend" his comment. I did.

BTW, how does one add a comment there? I logged in, but the "add comment" is not working.

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It's all a show for the sheeple, low IQ backbenchers, and BBC journalists. I'm sure ministers and their advisors have had enough quiet words with banksters over lunch to know that they aren't lending high LTV because they don't want to increase their exposure to property 5 minutes before a double digit house price crash. Tough words will be spoken, a voluntary agreement will be thrashed out, and in 6 months when house prices are plummeting it will be quietly binned.

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It's all a show for the sheeple, low IQ backbenchers, and BBC journalists. I'm sure ministers and their advisors have had enough quiet words with banksters over lunch to know that they aren't lending high LTV because they don't want to increase their exposure to property 5 minutes before a double digit house price crash. Tough words will be spoken, a voluntary agreement will be thrashed out, and in 6 months when house prices are plummeting it will be quietly binned.

I daresay you have summed it up to a very high level of accuracy.

+1.25*

_______________________

* .25 added to adjust for inflation

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Grant Shapps, the Housing Minister, will demand answers to why the average age of a first-time buyer is now 37.

He must be joking right? This is unbelievable--I am going to write to my MP with the simple answer to their questions.

Shappsie is starting to really wind me up now. I too shall pen a letter this very evening. I will demand specific answers to my questions rather than the off the shelf, stock, mail merged ******** he sent me last time!

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Can someone more articulate than me pen a letter to Shapps and explain the most simplest of details, namely prices are too high, that's why lenders aren't lending.

FTB typically have little deposit, so the bank bears the risk. The reason banks are happy to lend to 2nd-time-buyers is they're sat on a large bubble of equity and they take the risk.

Edited by exiges

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Text of a Westminster debate on 25th Jan about housing:

http://www.theyworkforyou.com/whall/?id=2011-01-25a.27.0&s=speaker%3A11917#

Grant Shapps

The hon. Lady referred to my conversations with the FSA. I can tell her that I say exactly the same thing to the FSA that I say to this House and to the public, which is that there needs to be an adequate supply of lending, particularly to first-time buyers who are the motor that drives this whole issue and who are particularly relevant to housing supply . House builders are unable to build their product and sell it to anyone if there is no competition in the market place. Mortgage availability, therefore, is a very big issue.

Shadow Housing Minister Alison Seabeck :

I need to draw Members' attention to the entry in the Register of Members' Financial Interests under the name of my right hon. Friend Mr Raynsford, because he is my partner.

Raynsford's register of interests include

Hon vice-chairman (from June 2009), Construction Industry Council,

Chairman, NHBC Foundation,

Hometrack (non-executive),

President of the Constructionarium,

Chairman, Triathlon Homes,

Articles for the Municipal Journal, Hemming Group Ltd,

4. Sponsorships

(a) Donations to the constituency party or association, which have been or will be reported by the party to the Electoral Commission:

(a) Name of donor: Stef Stefanou

John Doyle Construction has/had someone called Stef Stefanou

http://www.theyworkforyou.com/mp/nick_raynsford/greenwich_and_woolwich

Does anyone know the outcome of Seabeck's investigation?

"In December 2010 it was revealed that Seabeck was under investigation by the Parliamentary Commissioner for Standards in relation to declaration of member's interests"

http://en.wikipedia.org/wiki/Alison_Seabeck

Edited by Redhat Sly

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We need a Government which has a pair...Like Thatcher.

Todays nonces dont lead...they ask, they take advice, they blame everyone else.

Ive never been impressed with Cameron and his clowns, they didnt oppose, they dont lead...they obfuscate and blather.

Now they cant take the initiative as they want to blame someone.

clearly, banks are making decisions themselves and prices need to fall. And, as Cameron Et Al all seem to be into BTL, then they KNOW what the reasons are for the high prices.

Gaud help us from these morons. Asking the people that avoided the consequences of their own actions is like asking the thief if he thinks an alternative punishment would be better to help him....like handing him free the goods he was stealing.:angry:

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Text of a Westminster debate on 25th Jan about housing:

http://www.theyworkforyou.com/whall/?id=2011-01-25a.27.0&s=speaker%3A11917#g49.1

Shadow Housing Minister Alison Seabeck :

Raynsford's register of interests include

Does anyone know the outcome of Seabeck's investigation?

MPs and their VI! :D:D:D

Corrupt little twerps I hope they lose it all in the crash.

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Shapps is weird. I don't get it. Both Cable and Cameron (during PMQ) this week have said that the main cause of the bust was the credit/HP boom.

(...)

I think I got it. That MoneyWeek article may explain the apparent contradiction between Shapps and Cable/Cameron.

Get out of the property market - NOW

(...)

Then the great crash of 2008 came along and (...) In the space of just nine months house prices lost nearly 20%.

(...)

http://info.moneyweek.com/property.php?bbcam=adwds_con&bbkid=Total+-+content+targeting&x=&jtid=10885250&UID=&jchk=1&nolog=1&jdid=gg303091&gclid=CI-QgoeA2qYCFUZP4QodACx70Q#

Perhaps the Gov. knows that fast and deep price falls are coming in 2011, and are at the same time warning against it, reminding people of Labour's boom (Cable and Cameron), and also trying to press the banks to cushion the crash a little (Shapps).

.

Edited by Tired of Waiting

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It's all a show for the sheeple, low IQ backbenchers, and BBC journalists. I'm sure ministers and their advisors have had enough quiet words with banksters over lunch to know that they aren't lending high LTV because they don't want to increase their exposure to property 5 minutes before a double digit house price crash. Tough words will be spoken, a voluntary agreement will be thrashed out, and in 6 months when house prices are plummeting it will be quietly binned.

Yes, well written. Democray makes liars out of our leaders.

At least we don't have to listen to a state of the union address :lol:.

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We need a Government which has a pair...Like Thatcher.

Todays nonces dont lead...they ask, they take advice, they blame everyone else.

Ive never been impressed with Cameron and his clowns, they didnt oppose, they dont lead...they obfuscate and blather.

Now they cant take the initiative as they want to blame someone.

+1

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I think I got it. That MoneyWeek article may explain the apparent contradiction between Shapps and Cable/Cameron.

Perhaps the Gov. knows that fast and deep price falls are coming in 2011, and are at the same time warning against it, reminding people of Labour's boom (Cable and Cameron), and also trying to press the banks to cushion the crash a little (Shapps).

.

banks? cushion?

comeon, the people that will cushion anything are borrowers.....If your theory is right, then Schapps is a traitor to the very people he is sworn to protect.

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Text of a Westminster debate on 25th Jan about housing:

http://www.theyworkf...peaker%3A11917#

That's an excellent link. And some very insightful remarks from MP's on it. Much better than the opinionated journalistic pieces.

As someone priced out of housing, I find some of the Comments of the Conservative MP for Peterborough, Mr Stewart Jackson, and Conservative MP for Rugby, Mr Mark Pawson, downright ignorant and insulting:

Stewart Jackson, Conservative MP for Peterborough:

Does my hon. Friend agree that one problem with registered social landlords not developing more schemes for shared ownership is that the existing business model is one with a constant stream of housing benefit income - while the Government's reform of housing benefit will use the market mechanism to develop more innovative ways of getting people into shared equity?

Reply from Conservative MP, Mark Pawsey, Conservative MP, Rugby:

My hon. Friend makes a very sensible point. Shared equity offers a real opportunity. I like to see variable rates of shared equity, so that people may start with a 25% equity stake and increase that as their circumstances change. That is not happening as often as it should.Points were made about the availability of finance. People's ability to buy homes is very much driven by their ability to borrow, and there are real uncertainties in the market because of the current FSA proposals, which have been described as draconian. The harder we make it for people to get the level of finance they require, the less demand there will be for housing, and that will provide a disincentive for people to bid at a higher price, which in turn will lead to a further reduction in supply.

No First Time Buyers are interested at all in Shared Ownership. You would think they would realise that by now.

Conservative MP, Mark Pawsey, Conservative MP, Rugby:

We have seen a massive growth in home ownership, to a peak of 71% of UK homes being privately owned by 2003.

Home ownership has remained at 70% for the last 21 years.

Stewart Jackson, Conservative MP for Peterborough:

We must not ignore the disparity between the joint income of young couples and the amount that mortgages are proffered at by lenders. That gap is huge, and we need to work with the Treasury and the FSA on the matter. I know that our right hon. Friend the Minister for Housing and Local Government is battling hard to make the FSA understand the practical ramifications of restricting the mortgage market, which will be disastrous for the housing market.

Did you have to borrow by offering proof of a joint or single income Mr Jackson, in order to buy your first home? What year was that?

It is clear that if prices fall to the same level of affordability relative to median household income earnings and interest rates, as they did in the mid-1990s, we are looking at a 50% + fall, from 2007 peak prices. FTBers will not borrow 6,7,8 x salary. We expect to borrow the long term average of 3- 3.5 x salary.

Probably the same as you did. [Although I suspect it may have been even less for you]

You seem to be suggesting the Ponzi/Pyramid Hosuing scam was a good idea, and should be re started?

Stewart Jackson, Conservative MP for Peterborough:

We all support do-it-yourself shared ownership and intermediate housing to get people on the housing ladder so that we can become a property-owning democracy again.

Just dont get it, do you?

I fear that the problem for my hon. Friend the Member for Watford is that he is looking through the wrong end of the telescope. The integral issue is mortgage availability and the fact that mortgage providers have failed to adapt and make progress in the market in terms of providing funding and mortgages to people.

Stop reading your paper, get off your ****, and go and talk to the people who are priced out of housing.

Affordability is the issue.

Stewart Jackson, Conservative MP for Peterborough:

I know it is heresy for any Conservative to say this-we have perhaps reached the limit of owner-occupation. If we consider comparative studies in Canada, Germany, Italy and France, people are happy to live in and pay rent for high-quality residential accommodation. We have not exhausted the possibilities of that here.

So we should work for nothing? No capital? Forced to pay for someone else's retirement and bankers bonuses? WE have already wasted tens upon tens of thousands in rent. We have been forced out of housing by the banks and the government. Its Theft. If the bank bailouts had not occured, housing would have reverted to its long term affordability. So our money is being stolen to prop up the price of other peoples houses. Whilst keeping us in debt slavery. And thats fine with you?

Richard Harrington, Watford, Conservative

I should like to take this opportunity briefly to consider shared ownership schemes, which are a very important way of increasing home ownership, and of helping the demand and supply sides to meet.

After reading that debate, one could come to the conclusion, reading between the lines that the Tories are going back to trying to push FTB'ers into SHARED OWNERSHIP?

Edited by Dan1

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banks? cushion?

comeon, the people that will cushion anything are borrowers.....If your theory is right, then Schapps is a traitor to the very people he is sworn to protect.

Of course! They all use FTB as cannon fodder. Remember Brown? Almost as bad here, I'm afraid.

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If I am the banker, and I borrow from BOE at rate of 0.5%, I have 2 choose.

1) Lend it to the FTB at a rate below the inflation, with a big risk of they can’t pay up and take a 20% hit as the mortgage is lot more than the house worth.

2) I could just offshore the Money HK or china, where they need 30% deposit with a higher interest rate. And besides, Yuan is still under value. So no risk in lose of exchange rate.

Isn't that what happened to Japan in the last 20 years where their intrest rate is low? This House crash will last 20 years,.

The only thngs to save it is either having a hyper wage inflation or have a big house crash like Hong Kong 5 years ago which was around 50%-60%. Note that the house price have started recover 2 years ago, andlast year house price increase in Hong Kong is around 23%.

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Can someone more articulate than me pen a letter to Shapps and explain the most simplest of details, namely prices are too high, that's why lenders aren't lending.

FTB typically have little deposit, so the bank bears the risk. The reason banks are happy to lend to 2nd-time-buyers is they're sat on a large bubble of equity and they take the risk.

The only problem with that is the 2nd time buyer has to find a 1st time buyer. ;)

Even the 6th time buyer that wants to downsize to a 1st time buyer property has to find a buyer....

This country is heavily reliant on property, finance and public services...none looking that healthy at the moment....if property sales stall...taxes and consumer spending will fall....the only way to get things moving again is to provide homes people can afford to pay for, together with the jobs that will pay for it.

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There does seem to be a bit of logical dissonance about at the moment. In fairness (hah!), the banks must be sending odd signals. They don't want a crash since over-valued houses is all they've got on their books, but on the other hand they don't want to lend to FTBs to buy over-valued houses... Hmm... So, they've probably exhausted BOMAD by now (or at least the stupid BOMADs), disposable income is dropping due to inflation and wage freezes, but they've got to extract wealth from somewhere to reduce their exposure to property falls. I think they're screwed.

I'm reminded of an old Bloom County Babylon cartoon where Opus the penguin wants to lose weight and tries more and more outlandish fads to help him, ignoring the shouts of "eat less and exercise more" from his friends...

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  • 312 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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