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Coming Up On Channel 4 News, The Housing Bubble

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It's not a bubble because the Bank Of England would never allow a bubble in the first place. They are vigilant, and also house prices are not past 2007 levels.

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Look, the official line is that anybody who says there's a bubble has never been outside of the M25, everybody knows the rest of the UK is full of decent housing which is comfortably affordable on local wages. Even inside of the M25 there isn't a bubble because London housing is a global asset class and London in 2014 is the greatest city there ever has been or ever will be to live in. So let's have no more of this "bubble" nonsense.

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Look, the official line is that anybody who says there's a bubble has never been outside of the M25, everybody knows the rest of the UK is full of decent housing which is comfortably affordable on local wages. Even inside of the M25 there isn't a bubble because London housing is a global asset class and London in 2014 is the greatest city there ever has been or ever will be to live in. So let's have no more of this "bubble" nonsense.

You are DavidCameron and I claim my £5.

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Erm why did she stick her finger in the bubble blower?

Better to wait until tomorrow for the policy

Edited by Ash4781

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At the risk of sounding like Venger - they've already mentioned the 'poor people who might be made mortgage prisoners'. I have the key to let the pour souls out - either they sell up now when the market is crazy, and rent with a nice cushion of equity in the bank, or they get repo'ed when mortgage rates hit 7%. Simples!

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Spoke with a couple of EAs today who told me that sales are the best in 5 years.

Then they said that people now have to wait 4 weeks to get a mortgage appointment at the bank and thst each interview os lasting about 4 hours as the bank goes through all outgoings. They are advising buyerd to cancel all direct debits for gyms, mafazines, etc and to say that they don't order take aways, etc. One would assume that the banks would know the truth though.

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Spoke with a couple of EAs today who told me that sales are the best in 5 years.

Then they said that people now have to wait 4 weeks to get a mortgage appointment at the bank and thst each interview os lasting about 4 hours as the bank goes through all outgoings. They are advising buyerd to cancel all direct debits for gyms, mafazines, etc and to say that they don't order take aways, etc. One would assume that the banks would know the truth though.

Ah yes, pretend you're a monk who doesn't eat, and then spend the next 25 years forced to live that way because you can't service the debt otherwise.

Or just don't buy and wait for prices to fall. But that would be overcomplicating things, wouldn't it?

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She even said that if people are spending all they have on their debt they have less to put into the economy.

Its possibly the first time such twisted logic has been spoken on British TV.

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She even said that if people are spending all they have on their debt they have less to put into the economy.

Its possibly the first time such twisted logic has been spoken on British TV.

I thought the bigger your mortgage the richer you felt, leading to more weekends spent in the DIY store or buying shoes?

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It is a complete mess, god knows how it will end.

The Government has given the green light for people to go and buy properties with a deposit of just £3.50 under the con that is HTB.

The BofE have no clue what to do, other than sit and watch.

The FCA, who are always about 15 years behind the curve, seem to think that drilling down to how many sheets of bog roll you use a day, is a good way of ascertaining whether you can afford a mortgage.

I work in Financial Services, and have seen the way the FSA/FCA work. i.e come up with an idea, throw it out to the financial companies who then have to do all the leg work, jump through hoops, and come up with a solution. I would question that after some of the things they have introduced, whether they have actually benefited anyone or just created more hassle.

It must really be the worst time ever to be a First Time Buyer.

The new rules will either kill the market dead, leading to a drop in prices or wipe a whole generation off the housing ladder. If so, that will be Calamity Cameron's legacy.

I have been paying an additional 4% into my pension, but have just cancelled this a week ago. I am also being more clever how I make purchases. It is like the Government have lost control, the Bank of England are oblivious, and the FCA are throwing out knee jerk guidelines.

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She even said that if people are spending all they have on their debt they have less to put into the economy.

Its possibly the first time such twisted logic has been spoken on British TV.

Probably explains why the retail figures are so low. Osborne and Carney have properly ******ed things up.

http://uk.reuters.com/article/2014/06/25/uk-britain-retail-cbi-idUKKBN0F00Y720140625

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The new rules will either kill the market dead, leading to a drop in prices or wipe a whole generation off the housing ladder. If so, that will be Calamity Cameron's legacy.

Isnt that what theyve already done hence the reason HPC exists?

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Spoke with a couple of EAs today who told me that sales are the best in 5 years.

Then they said that people now have to wait 4 weeks to get a mortgage appointment at the bank and thst each interview os lasting about 4 hours as the bank goes through all outgoings. They are advising buyerd to cancel all direct debits for gyms, mafazines, etc and to say that they don't order take aways, etc. One would assume that the banks would know the truth though.

Do applicants have to give the mortgage lender a number of months worth of bank statements?

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Do applicants have to give the mortgage lender a number of months worth of bank statements?

That seems to be the case - we were asked to bring them for a decision in principle (which took < 1/2 hour), but they didn't get looked at in the end.

We did also get asked about all outstanding credit card balances and any other debts. Computer said 4.3x joint, we said, don't be silly!

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Many voted for the Tories (inc me) believing this would happen as they had been criticizing the labour housing bubble. Once in power they saw the bubble did not exist and indeed house prices were too low and would collapse if they did not do something so needed to introduce FLS, HtB 1 and HtB 2 with added forbearance from the banks. There is no way Cameron and Osborne will do anything that could lead to property prices falling, if anything there will be a stamp duty holiday, MIRAS or some other 'help' to maintain the on-going boom.

At least you know what to do about it.

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The FCA, who are always about 15 years behind the curve, seem to think that drilling down to how many sheets of bog roll you use a day, is a good way of ascertaining whether you can afford a mortgage.

Not sure what is wrong with this particular policy - looking at people's actual spending habits to see if they can afford a mortgage seems pretty sound really. What's the downside to it in your view?

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Not sure what is wrong with this particular policy - looking at people's actual spending habits to see if they can afford a mortgage seems pretty sound really. What's the downside to it in your view?

Surely the best way to destroy a Ponzi scheme is to make it harder for new entrants to the scheme to deposit all their cash in the hope of making a return like all those that came before them...

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I agree that looking at spending habits under MMR is sensible however it seems the FCA have just given a guideline and it is up to the lenders to interpret it how they see fit.

RDR was a last minute mess, and the incoming CASS is a bit pointless IMHO and it will confuse people more than anything else.

I could agree that child care, loans, travel, "unavoidable" costs should be factored in, but things that are not financial commitments being factored in as well seems excessive.

For example if one month I decided I wanted to spend £30 on a concert or go out with friends, I would be penalised for that. It is not a financial commitment and could it easily be curtailed in the event of financial hardship anyway. I think only financial "unavoidables" should be included.

It seems a box ticking exercise and a bit of a waste of time, because there is nothing to stop me getting approved for a mortgage for x amount having not bought anything for 3 months, then the next day signing up to a gym, golf club, magazine subscription, Sky TV etc.

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It seems a box ticking exercise and a bit of a waste of time, because there is nothing to stop me getting approved for a mortgage for x amount having not bought anything for 3 months, then the next day signing up to a gym, golf club, magazine subscription, Sky TV etc.

3 months of discipline is still an indicator… and its better than what we have now.

Interesting times ahead in my view. But its all rather pushmepullyou with the props at one end and the lending restrictions at the other.

At least there is some push in the right direction, it was only relatively recently the hpc view was mocked, now that the talking heads say it too on the tv everyone knew all along !

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I agree that looking at spending habits under MMR is sensible however it seems the FCA have just given a guideline and it is up to the lenders to interpret it how they see fit.

RDR was a last minute mess, and the incoming CASS is a bit pointless IMHO and it will confuse people more than anything else.

I could agree that child care, loans, travel, "unavoidable" costs should be factored in, but things that are not financial commitments being factored in as well seems excessive.

For example if one month I decided I wanted to spend £30 on a concert or go out with friends, I would be penalised for that. It is not a financial commitment and could it easily be curtailed in the event of financial hardship anyway. I think only financial "unavoidables" should be included.

It seems a box ticking exercise and a bit of a waste of time, because there is nothing to stop me getting approved for a mortgage for x amount having not bought anything for 3 months, then the next day signing up to a gym, golf club, magazine subscription, Sky TV etc.

If they do take the £30 into account, and assume you're a concert regular, wouldn't that just 'penalise' you by £30 x 12 => £360, even allowing for 5x salary, that would only reduce the total you could borrow by £1800 - is that really going to keep you from your dream home?

I have no particular desire to explain where the hell all my money goes to some junior bankster, but if someone is just a Sky subscription away from defaulting on their mortgage with rates at record lows, I really hope the bank does refuse them a loan!

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I don't know why they're wasting time and effort on this nonsense, all they have to do is stop the stimulus and prices would fall naturally.

U-turn on the way to an election. Electioneering overrides all.

I am still sympathetic to the idea that doing what was expected of them was the intention all along, its just when they assessed the mess once in power they realised it would be like doing a 180 in an oil tanker. Perhaps it had to be business as usual for the first few years after ten relentless years of mismanagement.

We'll see. Cant do much else can we

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