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Financial Stability Report - June 2014 - Live Press Conference 10.30Am

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Anything that calms thing down in London could send beneficial (to HPC) ripples through the South East. I'm not that hopeful they'll do anything major.... but fingers crossed.

Edited by Guest

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10:30 - BANK OF ENGLAND FINANCIAL POLICY COMMITTEE SAYS TO CAP BULK OF HIGH LOAN-TO-INCOME MORTGAGES, TOUGHEN UNDERWRITING STANDARDS
10:30 - BANK OF ENGLAND FPC - TO SET FROM OCTOBER LOAN TO INCOME RATIO AT 4.5 FOR 85 PCT OF NEW MORTGAGES
10:30 - BANK OF ENGLAND FPC - NEW CAP WOULD APPLY TO LENDERS WHO GRANT MORE THAN 100 MLN STG OF HOME LOANS A YEAR
10:30 - BANK OF ENGLAND FPC - HOME LOANS GRANTED FROM TODAY BUT COMPLETED FROM OCTOBER WILL COUNT TOWARDS TOTAL VOLUME FOR SETTING PLANNED CAP
10:30 - BANK OF ENGLAND FPC - TOUGHENS AFFORDABILITY TESTS FOR NEW HOME LOANS FROM THURSDAY BY TAKING INTO ACCOUNT POTENTIALLY HIGHER INTEREST RATES
10:30 - BANK OF ENGLAND FPC - MOST LENDERS ALREADY OPERATE WITHIN THE LTI CAP
10:30 - BANK OF ENGLAND FPC - DOES NOT BELIEVE THAT HOUSEHOLD INDEBTEDNESS POSES AN IMMEDIATE THREAT TO STABILITY, MEASURES AIMED TO INSURE AGAINST THIS RISK
10:30 - BANK OF ENGLAND FPC - EIGHT TOP UK LENDERS MUST MAINTAIN CORE EQUITY RATIO OF 7 PCT, LEVERAGE RATIO OF 3 PCT
10:30 - BANK OF ENGLAND FPC - SETS FIRST FORMAL COUNTERCYCLICAL CAPITAL BUFFER FOR BANKS AT 0 PCT

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10:30 - BANK OF ENGLAND FINANCIAL POLICY COMMITTEE SAYS TO CAP BULK OF HIGH LOAN-TO-INCOME MORTGAGES, TOUGHEN UNDERWRITING STANDARDS

10:30 - BANK OF ENGLAND FPC - TO SET FROM OCTOBER LOAN TO INCOME RATIO AT 4.5 FOR 85 PCT OF NEW MORTGAGES

Do a 100%.!!!!!

10:30 - BANK OF ENGLAND FPC - NEW CAP WOULD APPLY TO LENDERS WHO GRANT MORE THAN 100 MLN STG OF HOME LOANS A YEAR

DO ALL lenders !!!!

10:30 - BANK OF ENGLAND FPC - HOME LOANS GRANTED FROM TODAY BUT COMPLETED FROM OCTOBER WILL COUNT TOWARDS TOTAL VOLUME FOR SETTING PLANNED CAP

Do today !!!

10:30 - BANK OF ENGLAND FPC - TOUGHENS AFFORDABILITY TESTS FOR NEW HOME LOANS FROM THURSDAY BY TAKING INTO ACCOUNT POTENTIALLY HIGHER INTEREST RATES

That's the housing market ****ed.

10:30 - BANK OF ENGLAND FPC - MOST LENDERS ALREADY OPERATE WITHIN THE LTI CAP

It's the ones that dont that are the problem. Who do you think the estate agented based independent financial advisor's turn to !!!!

10:30 - BANK OF ENGLAND FPC - DOES NOT BELIEVE THAT HOUSEHOLD INDEBTEDNESS POSES AN IMMEDIATE THREAT TO STABILITY, MEASURES AIMED TO INSURE AGAINST THIS RISK

Comdy Gold. :lol:

10:30 - BANK OF ENGLAND FPC - EIGHT TOP UK LENDERS MUST MAINTAIN CORE EQUITY RATIO OF 7 PCT, LEVERAGE RATIO OF 3 PCT

Comdy Gold. :lol:

10:30 - BANK OF ENGLAND FPC - SETS FIRST FORMAL COUNTERCYCLICAL CAPITAL BUFFER FOR BANKS AT 0 PCT

Raise the ****ing interest rates !!!!

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Fears that measures announced today could hit the housebuilding sector seem unfounded. Persimmon shares jumped 6.5% and Barratt rose 5.5%. Building materials supplier Travis Perkins rose 3.5%

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Via Priced Out Carney: "We expect momentum in the housing market to continue for the next year or so ... Then will move in line with earnings growth." and Carney: "We don't target house prices, we target indebtedness". Which is why we call for the government to act too."

The government have acted .... FLS (since removed), HtB 1 and HtB 2 plus forbearance etc

I'm not defending the NASTY party, but they have made some inroads on forcing councils to allocate land (including greenbelt) for building on over the next 15 years.

There has been a lot of planning permissions granted, and if you search the news you will see that a lot of local councils have started building council houses yet due to unannounced unofficial policy.

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Carry on bubblin'.

Well that's anyone in London with a mortgage >4.5 x income or high value property fecked if they need to sell. there going to lost 20% of their bidders overnight. :D

London's way past 4.5x joint affordability already. This will have zero impact. 4.5x joint + deposit = 9x main should keep the rest of the country bubbling.

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FPC central assessment of risks is for house prices to rise 20% 2014-2017.

They are expecting the current growth rate in house prices to continue up until mid-2015 (i.e. until the election) and then level off a bit.

FSR0614d.gif

Edit: changed 'forecast' to 'assessment of risks'

Edited by FreeTrader

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Well that's anyone in London with a mortgage >4.5 x income or high value property fecked if they need to sell. there going to lost 20% of their bidders overnight. :D

According to the FT, no bank currently exceeds the limit on lending at > 4.5x income; the average level of lending at that rate is only 11% so it won't have any immediate effect: http://www.ft.com/cms/s/0/ef06b7fc-fd13-11e3-8ca9-00144feab7de.html#axzz35jsxkYQx

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According to the FT, no bank currently exceeds the limit on lending at > 4.5x income; the average level of lending at that rate is only 11% so it won't have any immediate effect: http://www.ft.com/cms/s/0/ef06b7fc-fd13-11e3-8ca9-00144feab7de.html#axzz35jsxkYQx

Carney keeps emphasising: You should be able to get a high LTI mortgage today, but you might not later this year.

Load up now?

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Haha, quick fill you boots now cause after the election the economy is toast.

Brilliant, must have been thought up with the help of VIs.

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15% limit on >=4.5 LTI mortgages will be by volume, not value. Carney says FPC will be alert to abuse of this.

To make sure there's still scope for some truly epic lending multiples in London and the South East?

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It's a big advertising push to make anyone who thought mortgages of high salary incomes were difficult to obtain since the financial crisis, realise it's chocs away on lending again. It classes 4.5x household income as the new normal. The stay at home mother has just died.

85% of mortgages capped at 4.5x household income, means 15% of mortgages aren't capped at 4.5x household income and all you need is some people borrowing anything they like and bidding prices up, to force everyone to pay more.

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Raise the ****ing interest rates !!!!

No #bringbackcapitalism a. #banHTB b. #letmktsetrates c. #banbankbailouts

STOP INTERVENING

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No Help to Buy mortgages at more than 4.5x household income. 20% of the price is ignored (for now) so what they are getting into debt for is 5.4x household income, in order to buy the house rather than the glorified shared equity scheme. This of course means that other people have to pay more, whether they do HtB or not.

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It's a big advertising push to make anyone who thought mortgages of high salary incomes were difficult to obtain since the financial crisis, realise it's chocs away on lending again. It classes 4.5x household income as the new normal. The stay at home mother has just died. 85% of mortgages capped at 4.5x household income, means 15% of mortgages aren't capped at 4.5x household income and all you need is some people borrowing anything they like and bidding prices up, to force everyone to pay more.

Not if you do really need to pass an affordability test at 7% today - didn't they say that debt servicing costs of > 35% of income were unaffordable? If that is net/disposable income I make that a much lower cap for ALL new OO lending...

Edited by RentaBear

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