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First Timers Forced To Pay Twice As Much For Mortgages


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This wasn't mean to happen with funding for lending was it? All good ponzis need new entrants to keep going - its almost like lenders know that prices are going to fall. Of course its early days yet but I can't see a few cheaper 60/70% LTV mortgages setting the market alight.

First timers forced to pay twice as much for mortgages

A good-news property story isn't to be sniffed at and in recent weeks record low mortgages from HSBC and now Santander are certainly a positive step. However, this will be small comfort to anyone without a substantial deposit as the gap between the haves and the have-nots widens.

The difference in mortgage rates is now so large that those who can only rustle up a 10 per cent deposit could pay twice as much as buyers with 40 per cent saved up and the big lenders are keen to keep it this way.

"The disparity deems the Bank of England base rate to be meaningless. It literally makes no difference at all how low this rate is or the fact it has been at 0.5 per cent for more than three years," says Peter Joseph from online estate agents ithinkproperty.co.uk. "Lenders simply do not want to be in this area of the market and see it is a higher risk sector they are happy to avoid, aside from a few token expensive offerings".

Following HSBC's move a few weeks ago, Santander has matched its competitor with the cheapest ever five-year fixed-rate mortgage costing only 2.99 per cent. Both lenders have made a serious statement, but don't get too excited, there is a big catch – both loans are only available if you want to borrow no more than 60 per cent of the property's value. Etc, etc.

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This wasn't mean to happen with funding for lending was it? All good ponzis need new entrants to keep going - its almost like lenders know that prices are going to fall. Of course its early days yet but I can't see a few cheaper 60/70% LTV mortgages setting the market alight.

First timers forced to pay twice as much for mortgages

Yup. Actions vs. words.

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So even if house prices do drop they will still be unaffordable to most buyers!!

there is nothing ironic or unusual in this - the same forces that inflated a bubble go into reverse to deflate it - cheap FTB mortgages become expensive FTB mortgages, and the price drops accelerate

this is good in a way as it helps to limit the damage occurring to those least able to bear it

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Isn't it just plain simple that if the banks had any confidence in the slightest that house prices will not crash (or at least significantly fall), they would simply be back to offering 5% deposited mortgages. There is no legislation preventing them from doing so

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Isn't it just plain simple that if the banks had any confidence in the slightest that house prices will not crash (or at least significantly fall), they would simply be back to offering 5% deposited mortgages. There is no legislation preventing them from doing so

No they would be offering 125% mortgages to people who couldn't afford a 100% mortgage, at that point they would be confident there wouldn't be a crash....

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No they would be offering 125% mortgages to people who couldn't afford a 100% mortgage, at that point they would be confident there wouldn't be a crash....

Fair point, but do you realistically see this happening after what has happened in the not so distant past (assuming they were confident of no crash)?

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Yup. Actions vs. words.

The whole point of them receiving taxpayer and QE funding was to get bankers lending going throughout the UK which they promised to do.

It should be withdrawn immediately from the bankers who dont help small/medium businesses and put out mined, false semi-loans

- not that idiots should be borrowing to buy these over-inflated, immediate usury debt houses

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Fair point, but do you realistically see this happening after what has happened in the not so distant past (assuming they were confident of no crash)?

If they want to keep the ponzi going for a bit longer then why not? Although I doubt that they'll stoop this low... For me if these do get offered realistically they'd be backed by the good old taxpayer.... I mean what could possible go wrong.

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The whole point of them receiving taxpayer and QE funding was to get bankers lending going throughout the UK which they promised to do.

It should be withdrawn immediately from the bankers who dont help small/medium businesses and put out mined, false semi-loans

- not that idiots should be borrowing to buy these over-inflated, immediate usury debt houses

They've been treated a bit unfairly though, in that Govt. on one hand says 'lend more' and on the other says 'rebuild capital ratios etc'. Lloyds will hit its target loan:deposit ratio sometime in 2013 (currently around 500 basis points above the target, from memory- see latest results last week). So until they get that down, new net lending ain't going to happen irrespective of what some politico says. Managed decline seems to the best case scenario, for those who wish to see looser policy. 'Funding for lending' is a gimmick imo-no-one wants it and the banks can't give it out. Guess most other banks are in the same boat.

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  • 434 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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