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So a the FPC led by Mark Carney are going to reining in mortgage lending. Look a flying pig.

Sounds to me like the banks have found out that after years of HPI the country can't afford to pay for housing and its crashing the market so Osborne tasked Carney with hosing money at the banks to keep the plates spinning.

To quote Fru-gal:-

"But this is not good for the banks. If most of the big homes are mortgage free then they have less money coming in. With MMR and houses just being too expensive the banks have a real problem. Not enough "customers" to make money from. As others on this forum have been saying, a HPC would actually benefit the banks as it would mean a fresh wave of lending (perhaps at lower amounts but in much higher volumes). Better to get £100k mortgages on 100 homes than to get £500k mortgages on 10 homes no?"

The BoE has form with its various committees doing more harm than good.

Edited by Blod

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True.....the ones they want to throw it to don't want or need it....the ones that want and need it they won't lend to...can't pay, won't pay.

Business don't care if they can't or won't pay after they have spent it.....all good money for them.

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Logged onto my account the other day, before I even get into my account now I have to fight thorough a number of offers for a mortgage. Just out of curiosity I click the link and they are offering me stupid amounts of money to buy a house. It smacks of desperation, on top of this I have my local bank calling me asking if there is anything I need like a mortgage or cheap loan. The last time I was at the bank the woman let slip they are desperate to sell mortgages and loans.

They are desperate to keep it spinning but they cant give debt away now. I think they are out of suckers at least in my area.

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Logged onto my account the other day, before I even get into my account now I have to fight thorough a number of offers for a mortgage. Just out of curiosity I click the link and they are offering me stupid amounts of money to buy a house. It smacks of desperation, on top of this I have my local bank calling me asking if there is anything I need like a mortgage or cheap loan. The last time I was at the bank the woman let slip they are desperate to sell mortgages and loans.

They are desperate to keep it spinning but they cant give debt away now. I think they are out of suckers at least in my area.

I wonder if the mortgage departments and internal political influence is so great in the banks that they HAVE to justify their fixed costs , in a naive badly managed organisational way of course

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Gotta love the way the Mirror are spinning it, as if the members of the board are going to personally vet every mortgage application! But presumably this does mean that all mortgage applications (or perhaps more likely those over a given LTV threshold) will have to be submitted to the BoE before being accepted, that in itself is a lot of overhead. I smell a new IT system in the air.

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They are desperate to keep it spinning but they cant give debt away now. I think they are out of suckers at least in my area.

Well I've just had an application for a credit card turned down...

An above-average paid job, a good track record of keeping on top of another credit card and several multitudes of £10k in cash saved with them

Apparently I'm a risk because, like a third of the country, I rent and have only been at the same address for two and a half years.

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From EAToday

Bank of England's new powers to curb housing market

The government is giving the Bank of England new powers over the housing market in a bid to prevent excessive price booms and equally excessive lending by banks.

As promised by Chancellor George Osborne last year, the Bank’s Financial Policy Committee has now confirmed it will be able to set limits on debt-to-income ratios and loan-to-value ratios for mortgages. The government is also giving the FPC powers of direction over the new so-called ‘leverage ratio framework’ for banks.

Until now the FPC could recommend these - but not enforce them.

"We're confirming that the Bank of England will have further powers to safeguard the stability of Britain's financial system from any future risks posed by our housing market or banks" according to a statement from Osborne.

These additional powers over the housing market - although brand new to the UK - are commonly held by the Bank’s counterparts in other countries, according to the government.

LTV limits are used extensively in countries including Canada, New Zealand and Norway. Several other countries including the Netherlands, Switzerland and the US have already introduced leverage requirements for many companies, including banks.

The government also says it intends to consult separately early in the new Parliament on the FPC’s recommendations for it to have new powers over the buy to let market “with a view to building an in-depth evidence base on how the operation of the UK buy-to-let housing market may carry risks to financial stability.”

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Well I've just had an application for a credit card turned down...

An above-average paid job, a good track record of keeping on top of another credit card and several multitudes of £10k in cash saved with them

Apparently I'm a risk because, like a third of the country, I rent and have only been at the same address for two and a half years.

The flaw in the system.....nothing is personal any more, only a number a score an algorithm .....anyone can make it fit to pass...but fit to pass often will fail....and fail to pass will often pass...something that only works with real people relationships. ;)

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Well I've just had an application for a credit card turned down...

An above-average paid job, a good track record of keeping on top of another credit card and several multitudes of £10k in cash saved with them

Apparently I'm a risk because, like a third of the country, I rent and have only been at the same address for two and a half years.

Wow.

All I can say Is I have only been renting here a couple of years, I have savings, car paid off etc. I keep a little bit of credit card debt which I pay off regularly I think that might be the difference. So I will buy a tele and pay it off next month sort of thing.

They are trying to fling loans and cards at me with the bank calling at least once a month to see if they cant give me a loan. They also told me I have a 25k loan I can get instantly if I need it and now they are putting pressure on me to take a mortgage.

I feel very much like they see me as a big fat Christmas turkey they want to feed on. It feels very predatory like pre 2007

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