Btl Mortgage Company Tightens Lending Criteria

[Flash]

http://news.ft.com/cms/s/7754649c-728f-11d...00779e2340.html

Mr Stewart said the move by Capital to tighten its lending criteria spoke volumes about the market.

"I would say this is further evidence that lenders are becoming increasingly nervous about valuations in this sector of the market," he said. "Some investor clubs will fall apart unless their members can buy properties with minimum equity [deposits]."

Don't worry, there's always credit cards!

[Dames]

Beat me to it Flash.

D

[large]

This sector of the market is going to go into freefall. We will see properties that are currently 250k being sold for 100-130k by the end of 2007, which is probably still a little much for what you are getting, but I would possibly think about buying at that level. Only the most desirable developments, such as the Pan Peninsula in the Docklands, will be able to ask more than 150k for a 2 bed flat in the future.

[Flash]

This sector of the market is going to go into freefall.

Agreed. If you have bought an inner city apartment to get you "on the bottom rung of the ladder" with the hope of being able to trade up in future, think again.

This is why this is bound to have a knock on effect on the whole housing market. Anyone who thinks otherwise is deluding themselves.

The bottom is literally falling out of the market.

It happened in 1990 and is happening again now.

[Mr_Nice]

Agreed. If you have bought an inner city apartment to get you "on the bottom rung of the ladder" with the hope of being able to trade up in future, think again.

This is why this is bound to have a knock on effect on the whole housing market. Anyone who thinks otherwise is deluding themselves.

The bottom is literally falling out of the market.

It happened in 1990 and is happening again now.

Agreed. And "Everyone is looking at their lending criteria now."