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Gloomy Old News For Anyone Trying To Get A Mortgage

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"Gloomy old news for anyone trying to get a mortgage", said the BBC newsreader regarding the latest BBA figures.

BBC's financial correspondent replied "people are holding back because prices are falling".

In a few years time, people will look back and thank their lucky stars that they weren't offered the chance to take on unimaginable debt.

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"Gloomy old news for anyone trying to get a mortgage", said the BBC newsreader regarding the latest BBA figures.

BBC's financial correspondent replied "people are holding back because prices are falling".

Not so sure about that. Was offered £160k at 60% LTV from HSBC on Monday. Depends on your circumstances I think. Unfortunately, offer is only good for around 30 days, so won't be taking them up on that offer just yet. think I'll wait until the 'Spring Bounce' of 2012 plays itself out, if there is one. Yes, I'm "holding back because prices are falling"!

Wouldn't like to be an FTB looking for 90% though!

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"Gloomy old news for anyone trying to get a mortgage", said the BBC newsreader regarding the latest BBA figures.

BBC's financial correspondent replied "people are holding back because prices are falling".

Really!?

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"Gloomy old news for anyone trying to get a mortgage", said the BBC newsreader regarding the latest BBA figures.

BBC's financial correspondent replied "people are holding back because prices are falling".

Are they though? Not by much from where I'm sitting. The fact is that the only thing that will bring about falls of any significance is lots of forced sales and they aren't happening and, quite honestly, aren't likely to any time soon.

Interesting how the BBC are now paragons of truth now that they are saying what people here want to hear. No offence.

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Are they though? Not by much from where I'm sitting. The fact is that the only thing that will bring about falls of any significance is lots of forced sales and they aren't happening and, quite honestly, aren't likely to any time soon.

Interesting how the BBC are now paragons of truth now that they are saying what people here want to hear. No offence.

nah, people are holding back AND there is a shortage of lending AND there is huge demand AND deposits are too high AND rents are falling AND rents are rising.

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Interesting how the BBC are now paragons of truth now that they are saying what people here want to hear. No offence.

Or maybe the BBC have finally changed their tune and are now speaking more in line with what HPC'ers believe?

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Or maybe the BBC have finally changed their tune and are now speaking more in line with what HPC'ers believe?

BBC are now upping to doom level since the Coalition came into power. Before then, when Labour were in, everything was spun to be as rosy as possible.

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nah, people are holding back....

So aren't creating the demand.

AND there is a shortage of lending

So people can't buy even if they want to.

AND there is huge demand

Not if people are holding back there isn't, see my first point above. There may be huge desire to buy but there is no demand in a supply & demand sense until someone offers some money up. There is huge demand for new Ferraris but few can afford them so the "demand" is actually desire. Huge desire is not going to cause the price of a new Ferrari to fall.

AND deposits are too high

Which means people cannot buy so there is no demand.

AND rents are falling

AND rents are rising.

Erm???

The only thing that will precipitate a martket crash is lots of forced sales - people who absolutely have to sell. There aren't many, certainly not enough to crash the market and that doesn't look like chaging any time soon. If interest rates rocket then I'll start believing in more imminent forces sales.

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Or maybe the BBC have finally changed their tune and are now speaking more in line with what HPC'ers believe?

And maybe they'll find a reason to change it back again in the near future? Perhaps it suits their agenda to push that line this week - is the DG negotiating a purchse, one wonders?

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Are they though? Not by much from where I'm sitting. The fact is that the only thing that will bring about falls of any significance is lots of forced sales and they aren't happening and, quite honestly, aren't likely to any time soon.

Interesting how the BBC are now paragons of truth now that they are saying what people here want to hear. No offence.

Job losses are growing. IR are already rising despite vigilance at the BoE. A crash is inevitable.

I was out lokking with an EA this mornnig and he freely admits: its going to get much worse. We are cash buyers and have put in a "low ball" at about 35% of top of the market price. Tired of wating TBH and I fully expect them to drop another 20% from here but I do not want to rent for another 2 years while than happens. 35% off will do nicely.

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Really? I have a 6 month option on a 60% LTV from HSBC. Do you mind if I ask what mortgage it is?

5 year fixed premium (my partner banks with HSBC) at 4.59%. 16 year term.Low fees as well. It's not their cheapest rate, but our next move will be our last (hopefully!), so we're looking to fix for a fair amount of time.

Your 6 month option is interesting. Did you go into a branch, or apply on-line?

Edit: We needed 60% LTV. Not sure if this is available for higher LTV's.

Edited by AThirdWay

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Job losses are growing. IR are already rising despite vigilance at the BoE. A crash is inevitable.

I was out lokking with an EA this mornnig and he freely admits: its going to get much worse. We are cash buyers and have put in a "low ball" at about 35% of top of the market price. Tired of wating TBH and I fully expect them to drop another 20% from here but I do not want to rent for another 2 years while than happens. 35% off will do nicely.

I expect prices to drop a lot more than 20% from here, it's just gathering momentum.

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Really? I have a 6 month option on a 60% LTV from HSBC. Do you mind if I ask what mortgage it is?

I was offered a 60% LTV £170k mortgage at HSBC on Saturday with an interest rate of 1.79% above interest rates. So 2.29% this month.

£99 arrangement fee plus a fee for valuation with no redomption penalties. I think banks are more lreaxed about 40% ddeposits as the market would have to move along way before they are in risk of losing their stake.

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Job losses are growing. IR are already rising despite vigilance at the BoE. A crash is inevitable.

I was out lokking with an EA this mornnig and he freely admits: its going to get much worse. We are cash buyers and have put in a "low ball" at about 35% of top of the market price. Tired of wating TBH and I fully expect them to drop another 20% from here but I do not want to rent for another 2 years while than happens. 35% off will do nicely.

Tell me about it! :(

We definitely can't wait 2 or 3 more years whilst living in this tiny ugly little flat, with no outside space. But we can't buy until prices are fairer. The obvious solution would be to rent a better place.

But last week we went to see a house to rent, long term, 2 or 3 years, and the agent asked if we had children or pets. We said not yet, but we are considering it, and could have them in the next few years. Agent said: "the Landlord wouldn't like that". :blink:

The fecking b@stard!

How can they be allowed to say, or do that??!! This is beyond absurd. The legislation/regulation is a joke, a bad joke.

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Job losses are growing. IR are already rising despite vigilance at the BoE. A crash is inevitable.

Job losses are growing but not at a huge rate. Same sort of story with interest rates. You need more than that to set off a huge crash in the property market. Interest rates would have to rise to far higher levels than they are now and lots of people will have to be made jobless before enough properties are forced onto the market. Other factors which will slow down a crash are that lots of people will have loss of income insurace to cushion the blow and the fact that as intetrest rates are currently very low it will take a long time for them to get to levels which will really hurt. Also, the statutory schemes to help prevent loss of your house will help a bit.

Unless we get huge job losses and huge rate rises over a fairly short period then a crash as far from inevitable, I would think.

The other factor is that lenders don't want to take houses into possesion. That's not what their business model is about and it will end up costing them lots of money. Moreover, many lenders especially those at the sub-prime level only do one thing - lend on mortgages - and have no clue about how to go about possessing properties because they never anticipated it being necessary. In the old days of the big banks doing it they could more afford to because they have massive amount of resorces in terms of cash and personell and lawyers on retainer to exploit. The tremendous fvck up the "mortgages to chavs" boys made when dumping loads of properties on that yank auction company a couple of years back and which is going to come back to bite them is a case in point.

I was out lokking with an EA this mornnig and he freely admits: its going to get much worse. We are cash buyers and have put in a "low ball" at about 35% of top of the market price. Tired of wating TBH and I fully expect them to drop another 20% from here but I do not want to rent for another 2 years while than happens. 35% off will do nicely.

It may well drop another 20% but it may take 10 or 15 years - who knows? Fact is though that I don't see signs that it's particularly imminent and few that a "crash" will happen at all, if by crash you mean a rapid large fall.

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I was offered a 60% LTV £170k mortgage at HSBC on Saturday with an interest rate of 1.79% above interest rates. So 2.29% this month.

£99 arrangement fee plus a fee for valuation with no redomption penalties. I think banks are more lreaxed about 40% ddeposits as the market would have to move along way before they are in risk of losing their stake.

Hang on though - we've done this before months ago. Mortgage "offers" are not really the point. The proof of the pudding is actually getting this "offer" upon completion. A mortgage offer is not a contractual offer in the sense that either party is bound by it.

A bank can advertise pretty much any financial product it wants but actually getting it out of them is a different matter.

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Tell me about it! :(

We definitely can't wait 2 or 3 more years whilst living in this tiny ugly little flat, with no outside space. But we can't buy until prices are fairer. The obvious solution would be to rent a better place.

But last week we went to see a house to rent, long term, 2 or 3 years, and the agent asked if we had children or pets. We said not yet, but we are considering it, and could have them in the next few years. Agent said: "the Landlord wouldn't like that". :blink:

The fecking b@stard!

How can they be allowed to say, or do that??!! This is beyond absurd. The legislation/regulation is a joke, a bad joke.

I'm not sure that they are. If you sign a tenancy and produce kids during it I don't think you can be kicked out because of it.

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But last week we went to see a house to rent, long term, 2 or 3 years, and the agent asked if we had children or pets. We said not yet, but we are considering it, and could have them in the next few years. Agent said: "the Landlord wouldn't like that". :blink:

The fecking b@stard!

How can they be allowed to say, or do that??!! This is beyond absurd. The legislation/regulation is a joke, a bad joke.

It is unreasonable - assuming there isn't a bun in the oven, you're at least nine months away from having a nipper. After that, a newborn is unlikely to be ripping the wallpaper off or crayoning the carpet. That scenario is at least two years away - who knows where you might be living by then.

We had the same question when we moved to our current place and that was the answer I gave, which seemed to be enough.

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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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