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Realistbear

B B C Show Couple That Want Banks To Loosen Lending Criterea So They Can Get On Ladder

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http://www.bbc.co.uk/news/business-12462885

15 February 2011 Last updated at 11:21 First-time house buyers need help, says Grant Shapps
.../
'Help'
Extra help cannot come soon enough for Nick and Marie Smith. They had been renting a home for four years, while saving for a deposit.
Nick and Marie Smith have been trying to save up for a deposit The couple, who have two young children, realised that to raise enough money they needed to move in with Mr Smith's mother in Wiltshire.
"It cannot be for ever. I would be nice to be together in our own home," said Mrs Smith.
They were keen for Mr Shapps to demand that lenders loosen their lending criteria
.

I expect Mr. Schnapps to come up with a brilliant formula to allow Nicholas and Ma-Ma to buy their dream house:

1. Increase LTV to allow up to 125% loans
2. Extend IO loans with lower depositis
3. Deregulate lending critera and need to prove amount of income

level

Or, really help Nicholas and Ma Ma by:

Not doing all the government can to sustain a housing bubble.

Edited by Realistbear

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1. Increase LTV to allow up to 125% loans
2. Extend IO loans with lower depositis
3. Deregulate lending critera and need to prove amount of income

level

... followed by their bankruptcy when they cannot pay their mortgage as interest rates up. Then the bank will end up sustaining losses and the taxpayer will have to foot the bill. Cue more public anger at bankers.

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Mind numbing retardation. How many millions of people out there are like this couple who managed to get on the band wagon when they had 125% LTV, IO and no proof of income. IMHO 1 in 8 mortgages are deadly toxic, 3 in 8 are noxious and the rest just about manageable.

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It will be a cold day in hell when the BBC run one of these pieces and state the bleeding obvious that it is the fact that shelter in the UK is so hidiously overpriced and this is the main reason why young couples such as this can't afford to "get on the ladder." :angry:

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Its it me, or is the poor little BBC, with its sanctimonious butter wouldn't melt in their mouths propaganda, working for banker interests against the people of Britain.

Edited by Scott Sando

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Its it me, or is the poor little BBC, with its sanctimonious butter wouldn't melt in their mouths propaganda, working for banker interests against the people of Britain.

If you combine the worst parts of champagne socialism with those of crony capitalism a patronising puppet pig is what you end up with.

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In its arguments to Schapps at the first –time buyers summit, the CML gave the reason why this isn’t going to happen any time soon without state subsidy:

"High loan-to-value lending is very capital-intensive for lenders. Under today's risk-averse regulatory environment, lenders need to hold typically 6-8 times more capital against a 90% loan than a 60% loan. This is bound to have a knock-on effect on the volume and the price of the high loan-to-value lending that is taking place."

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Couple; "please can we get on that boat"

Captain; "No it's sinking"

Couple; "Please please please."

Captain; "IT'S SINKING."

Couple; : "Yes but can we get on?"

:D

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29. Hannah

2 Hours Ago

My partner and I are in the process of buying our first home. We were only able to do this by using ALL our savings for a 5% deposit, to add to a vendor gifted 5% deposit, to buy a 50% shared equity home which I fought tooth and nail for. If we hadn't done all that it would have taken us YEARS to save a full deposit for 100% of a less expensive house. I just think it's all down to luck in the end.

Yep that's right Hannah, LUCK! Luck that you've just sunk your entire savings into owning 50% of a cruddy home. It's ingrained isn't it, what will it take to make people wake up this sham?

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Erm why they allowing comments on this article they don't normally.

It's good that they are, plenty of comments about high prices being the problem instead of tight lending. I'm sure the BBC will pick up on this soon and 'moderate' the comments appropriately.

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There was a thread on here a while back, pointing out the massive paranoia exhibited by some members on here. Wish I could find it again. There are many interesting comments on economics here but to suggest these people are being paid off by the CML? That the BBC moderate comments on high house prices? Please....

We should be happy that the BBC actually showed this at all. Its called raising awareness and its a good thing.

The main blockage at the moment for FTB's IS the huge deposit requirements. After that, we have the issue of high prices in general. Now we could explore the argument that high house prices have inadvertently led to the deposit requirements but we are where we are.

There is no way the government/banks/vi's will let house prices fall. Low IRs, extra support for BTLs - whatever it takes to support it. I have said it before about inflation, we will have to suck it up. Sad but true, so we may as well forget about it and get on with life.

The banks invest speculatively with OUR money. They should be providing a socially useful function in return, as opposed to the ruthless pursuit of ever increasing wealth creation for themselves.

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Don't forget that sometimes MPs can't tell the truth about stuff. Just like Osborne can't come out and tell us the economy is circling the drain.

Wait and see what the gov do. Will they do stuff like Labour to prop up the market? Or will they tell King to do his job and sort out inflation? Or will they continue to sit on the fence while making the odd feeble comment about how house prices are too high but that they don't want them to come down.

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There was a thread on here a while back, pointing out the massive paranoia exhibited by some members on here. Wish I could find it again. There are many interesting comments on economics here but to suggest these people are being paid off by the CML? That the BBC moderate comments on high house prices? Please....

We should be happy that the BBC actually showed this at all. Its called raising awareness and its a good thing.

The main blockage at the moment for FTB's IS the huge deposit requirements. After that, we have the issue of high prices in general. Now we could explore the argument that high house prices have inadvertently led to the deposit requirements but we are where we are.

There is no way the government/banks/vi's will let house prices fall. Low IRs, extra support for BTLs - whatever it takes to support it. I have said it before about inflation, we will have to suck it up. Sad but true, so we may as well forget about it and get on with life.

The banks invest speculatively with OUR money. They should be providing a socially useful function in return, as opposed to the ruthless pursuit of ever increasing wealth creation for themselves.

You mention the HPC members paranoia, but go on to repeat the old (IMO paranoid) mantra about govts/banks/VIs not letting prices fall. IRs can't go lower, and there's no way any support is coming for BTLs or anyone else in this economic climate. Prices have fallen and are falling; I moved to my present house in Oct 2009, and I could get it for about 15% less if bought today. For those in stable reasonably paid work (I accept a dwindling proportion), affordability is definitely improving, though as you say high deposits are a massive block. High prices too of course, but 25% is a lot to find; historically very few FTBs ever put down more than 10% on their first place.

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There was a thread on here a while back, pointing out the massive paranoia exhibited by some members on here. Wish I could find it again. There are many interesting comments on economics here but to suggest these people are being paid off by the CML? That the BBC moderate comments on high house prices? Please....

We should be happy that the BBC actually showed this at all. Its called raising awareness and its a good thing.

The main blockage at the moment for FTB's IS the huge deposit requirements. After that, we have the issue of high prices in general. Now we could explore the argument that high house prices have inadvertently led to the deposit requirements but we are where we are.

There is no way the government/banks/vi's will let house prices fall. Low IRs, extra support for BTLs - whatever it takes to support it. I have said it before about inflation, we will have to suck it up. Sad but true, so we may as well forget about it and get on with life.

The banks invest speculatively with OUR money. They should be providing a socially useful function in return, as opposed to the ruthless pursuit of ever increasing wealth creation for themselves.

Prices are falling though? Just ask anyone trying to sell :lol::lol:

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You mention the HPC members paranoia, but go on to repeat the old (IMO paranoid) mantra about govts/banks/VIs not letting prices fall. IRs can't go lower, and there's no way any support is coming for BTLs or anyone else in this economic climate. Prices have fallen and are falling; I moved to my present house in Oct 2009, and I could get it for about 15% less if bought today. For those in stable reasonably paid work (I accept a dwindling proportion), affordability is definitely improving, though as you say high deposits are a massive block. High prices too of course, but 25% is a lot to find; historically very few FTBs ever put down more than 10% on their first place.

Just to clarify my take on paranoia; I am able to believe that the government does not want house price falls, as it would be politically unpopular. Besides, it is true that most MP's are also BTL landlords. I draw the line at the BBC removing posts mentioning high prices on its comments though.... Or that news stories are somehow created out of thin air to support high house prices.

House prices vary massively from region to region. Please forgive this massive understatement. I live and work in the SE in electronic engineering. Any country neighbouring London is hugely skewed because its commuter belt. Its basically got to the point where I cannot really afford a house in my region of work. Its true Swindon and Bristol has small pockets in what I do, maybe i should uproot the family and move there. I don't see house prices falling in Berkshire as i do the same search every Monday, the labour market is too strong. Maybe I will be proved wrong in time...

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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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