Jump to content
House Price Crash Forum
Guest

Nationwide Warns Of 'natural Correction' In House Prices

Recommended Posts

It's easy to make money when you are borrowing of the "free market" tories at 0.5% and lending it out at 20% APR on credfit cards.

Meanwhile, you are ****ing our the savers.

The nationwide's in for a shock one day in my opinion.

Share this post


Link to post
Share on other sites

The mutual said it had also approved 31% of all mortgages advanced within the government's Help to Buy scheme, designed to help first-time buyers onto the property ladder.

But it added the number of mortgages it advanced to borrowers with a deposit of 10% or less of a property's purchase value - which would account for a majority of first-time buyers - remained low, at 2.4% of its total lending for the year.

Not sure how to interpret this - does is mean that Nationwide is using the HTB scheme to lend to people with >10% deposit, or does it mean that one third of all HTB mortgages equals just 2.4% of Nationwide's total mortgage lending? I'm assuming the former, but either way, it's looking good for price falls.

Share this post


Link to post
Share on other sites
Guest

Natural is the wrong word.....nothing is natural in this day and age.

Perhaps they used "natural" as a softer way of saying "inevitable"... either way I'm happy.

Share this post


Link to post
Share on other sites

'Natural' falls following the unnatural increases?

Soft language indeed however prices are falling and they need to say something to avoid looking silly when it comes out in the Nationwide Rampimg Index.

They do lend high income multiples and long term mortgages too so risky business

Share this post


Link to post
Share on other sites

Yes Bruce. It was on news24 this morning combined with the news of the profit increase from last year. Natural correction to 150k tipping point. Terrifying fall to 100k after that. Bring it on.

Share this post


Link to post
Share on other sites

This was also reported on radio 4.

It's a shame that there are not a few more hpc'ers around these days to share in the good news, so perhaps the last few bears had turned.

Share this post


Link to post
Share on other sites

This was also reported on radio 4.

It's a shame that there are not a few more hpc'ers around these days to share in the good news, so perhaps the last few bears had turned.

I'm still here.

I wont ever leave, I am the EA hunter :P

Share this post


Link to post
Share on other sites

This was also reported on radio 4.

It's a shame that there are not a few more hpc'ers around these days to share in the good news, so perhaps the last few bears had turned.

Looks about normal to me....

603 users are online (in the past 30 minutes)

77 members, 521 guests, 5 anonymous users

Share this post


Link to post
Share on other sites

I was thinking the other day that the government will need an excuse to cut the deficit from 7% and that is particularly hard to achieve when there is a boom going on as you would be accused of upsetting the economy - thus a recession induced by limiting mortgage lending would be a great thing for the austerity government.

Share this post


Link to post
Share on other sites

Surprised to see this in the Nationwide results report. It heads the 'Key Risks' section (my highlighting):

Nationwide2014KeyRisks.gif

Read as....our business model based on free freshly printed government money is unsustainable.

Share this post


Link to post
Share on other sites

Theres a correction coming. The housing market needs another bailout quickly.

The Carney speech yesterday said that they were quickly making progress on bail-in legislation.

Share this post


Link to post
Share on other sites

I believe the government has done what it set out to do in their minds, and that is to give time, six years now, to enable banks to steal more money ready for a severe (they hope soft) correction. Whether it is enough to stop the banks crashing totally only time will tell. This is the end of the line. When thing like price corrections are spoken of openly in the media then it means it is now time for the show to start..

ps..Natural sounds so warm and cuddly doesn`t it.?

Edited by GinAndPlatonic

Share this post


Link to post
Share on other sites
Mr Beale told the BBC's business editor, Kamal Ahmed, buyers had started to baulk at ever higher house prices.
"At some point buyers just start saying no," he added.

That was more than 10 years ago for me. Except in 2008-2009 the forum was full of excuses for buyers who chose to pay silly prices into the big bubble. "They just wanted a home" / "Media TV shows" / "Parents told them can't go wrong with property" / "They couldn't expect a recession."

With that view still persisting hard today, full of excuses for buyers who have paid x2-x4+. Slacker the other day, almost totally unchallenged, or only light-weight resistance to his position. "Unfair" for a non-owner to buy at £250K for similar house someone else paid £500K for, or same house in a repossession. Apparently that makes the "HPCer" unfairly 'win' (after 10 years+ renting and enduring sick hpi forever stories). Then even claim if you were to buy at 50% off current values, you'd MEW, hope for more HPI, and say some event would likely happen where makes mortgage just as unaffordable for you as person who paid x2-x4 what you paid. Their solution, build more houses for speculators/equity rich to turn into BTL at 200,000 a year.
It's also funny it's also the same people claiming capitalism doesn't work are mostly the same ones who protect "victim" biggest debtors and older VI hyperinflated outright ownership house prices.
Edited by Venger

Share this post


Link to post
Share on other sites

Nationwide data is normally out in the last week of the month. Forex Factory says it's not until next week though. Are we being prepped for a big MoM fall on the back of MMR?

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   208 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.