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The Masked Tulip

House Crash Fears Fade Despite The Rise Of The Mega-mortgage

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A much simpler plan would be to simply give all your money to the banks. Forget about savings, pensions and decent holidays :blink:

Any new entrants into the housing market will probably be in this situation. Can you imagine the effect this will have on the economy? In a low wage inflation environment it will probably lead to long term economic stagnation, a whole generation doing nothing but handing their earnings to banks!

:lol:

You couldn't make this stuff up!

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Guest struthitsruth

Intresting how they compare it to 15 years ago

2005 now - go back 15 years and we are in 1990

Intresting year for house prices, 1990

Indeed it's interesting to see the CML's own stats say that in 1990, 52% of borrowers were FTB's, their median per cent advance was 95% of the purchase price, and the median income multiple 2.31

http://www.cml.org.uk/servlet/dycon/zt-cml...l_Table-PR2.xls

The following year saw a peak in repossession orders in England and Wales. 134,000 warrants issued and 62,000 resulted in reposession action - the figure applies to rent payers defaulting as well as homeowners not paying their mortgages, nevertheless, people were overstretched, even at those benign multiples.

In the previous year, i.e. 1990, I bet the forecasters were saying "Housing market set to rise, we're back on track, sales are going up etc"

;)

Edited by struthitsruth

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Um, so this article is saying there won't be a HP crash because lenders are lending more money to people? Am I reading this wrong? Am I living in the land of Oz?

http://www.timesonline.co.uk/newspaper/0,,...1838043,00.html

No you appear to be living in a land where it is reported daily that the debt burden is crippling the economy and bringing on a possible recession.

You are living in a land where economists are saying that the whole economy has been based on high house prices and debt for years and can't be sustained.

a land where the MPC has discussed high interest rates.

but the same paper that reports that one day now indicates to its readers that house prices are stable..

indicating to its readers that any investment in property is safe.

I can't understand it..

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Um, so this article is saying there won't be a HP crash because lenders are lending more money to people? Am I reading this wrong? Am I living in the land of Oz?

http://www.timesonline.co.uk/newspaper/0,,...1838043,00.html

Yes, the lenders are lending more money but to less people. :blink:

I made a graph for all to see. Also the gap between Approvals by BoE and Loans by CML is getting bigger and bigger. I believe more and more are pulling out of the madness. :P

ApprovalsBoE-LoansCML-TotalSterlingBoE.gif

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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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