Fca - New Mortgage News - (Merged Topics)

[wonderpup]

They are only pissed off because their debt is not 'inflating away' and their income in spending power is declining, if wages were rising and the debt 'inflating away' then soaring HPI would be more than welcome, this is after all what they signed on the dotted line for; massive mortgage = massive leverage all inflated away with wage inflation as they move up the ladder.

This-plus the fact that many have kids who have now been priced out to a degree they never imagined possible.

[rantnrave]

Just heating up the popcorn when I found this over on EA Today:

MMR "has already hit housing market" - claim

The new 'big brother' mortgage regime may have only come into effect over the weekend but it has already caused a serious slump in valuations.

Connells' Survey and Valuation team says the total number of valuations it conducted fell nine per cent in March from February, showing total activity levels to be 10 per cent below that recorded in March last year.

"March is usually a strong month for valuations as the spring market heats up. But that just doesn't apply this year. Lenders have had to devote serious time and resources [to MMR]," explains John Bagshaw, Connells' corporate services director.

Valuations on behalf of existing home owners seeking to move saw a relatively small dip - down two per cent in March from February - but it was the valuations conducted on behalf of first time buyers that saw a serious slump of seven per cent over the month.

Remortgaging also fell sharply according to the firm. The number of valuations for remortgaging dropped a startling 22 per cent between February and March. So it accounted for 35 per cent of all valuations in February but just 23 per cent in March.

The buy to let sector was the only one to see more valuations in March than February, up two per cent; however, even this is smaller than the comparable time last year. Overall, buy to let activity for valuations remains seven per cent lower than at this time last year.

"After MMR remortgaging will have to be done in a very different way - applications will often need to be treated with almost as much scrutiny as fresh loans," warns Bagshaw.

Edited April 28, 2014 by rantnrave

[TheCountOfNowhere]

"The new 'big brother' mortgage regime" - The big brother mortgage regime is the one handing out sub-prime mortgages on over-priced shoe boxes !!! It's the rest of us that need/want the sane lending, not the government !!!]

"Connells' Survey and Valuation team says the total number of valuations it conducted fell nine per cent in March"

Is that a slump in valuations or number of valuations ? There is a BIG difference

There will be an even bigger slump in buyers.

Edited April 28, 2014 by TheCountOfNowhere

[stuckmojo]

Just heating up the popcorn when I found this over on EA Today:

Fantastic news.

[awaytogo]

Just heating up the popcorn when I found this over on EA Today:

Big brother,

Preventing people from buying something they cannot afford is not big brother its common sense, EAs should be welcoming such schemes along with the banking sector.

[TheCountOfNowhere]

Spoke to a mate of mine last night, is planning to sell now, he new aboutt he new mortgage rules and admits he's now missed the boat....sentiment change.

He's going to give it a go though but you could see he looked defalted. He also knows he's priced out of moving up the pyramid now too and his only plan is sell and rent, after that money is gone get the state to pay!!!!