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TheCountOfNowhere

Lenders Withdraw Some High Ltv Products Following Brexit

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Great news indeed.

Think of those poor overseas investors who have seen their houses fall ~10% in value over 2 trading days due to Sterling's fall....

I can't see many investors buying into London property now,

Everything is pointing one way!

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And the lender has seen a boost in applications following the decision to leave the EU. On Friday Fleet saw its busiest day ever for new mortgage applications with roughly four times its usual number. This was double its previous best day during the SDLT spike.

Is this website a parody?

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Great news indeed.

Think of those poor overseas investors

Thos chinese investors can sell at a massive loss in GBP and still break even.

This baby is going down.

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Unless they were all rushing to get a mortgage before it goes tits up. But it's not at all what I've been hearing from people in the know or online. Very very odd.

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Come on now. This is nothing to be pleased about.

Now...if the ballot had been cast on 'we demand X changes to the EU Constitution' or leave, as opposed to black and white...

I will argue here and now that dropping house prices will be offset by restriction of the lending market and a general reduction in liquidity, higher rates, more taxes, and lack of buyers.

No upside, that is what I am saying.

And the 'property = pension' types are going to go ballistic... especially as inheritance tax is going to go up significantly. The children of these people are going to get it right in the kidney with the sharp end of the sh1t stick.

EDIT: and overall higher commodity pricing, higher energy tariffs, less competition. Not good for all the small fry. Not good at all.

Edited by cashinmattress

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Are you still whining about the result?


I will argue here and now that dropping house prices will be offset by restriction of the lending market and a gereral reduction in liquidty, higher rates, more taxes, and lack of buyers.

Indeed, but don't forget the positive you've left out.

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Are you still whining about the result?

Indeed, but don't forget the positive you've left out.

Such as?

This?

http://www.theweek.co.uk/brexit/61987/will-house-prices-rise-in-a-brexit-bubble

House prices: Brexit discount for foreign buyers hits £40,000

Tumbling pound sees London property fall from €630,100 at €579,200 for overseas investors

https://en.wikipedia.org/wiki/Unintended_consequences

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Thos chinese investors can sell at a massive loss in GBP and still break even.

This baby is going down.

If they sell at a loss in GBP, they'll sell at an even bigger loss in USD after Friday's result, so it might be going down even quicker, but those foreign investors will be nursing losses.

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Foreign investors are not seeking value in London, London has not been good value for at least 5 years in any currency, they are seeking a momentum play, and momentum will now be firmly down.

True. London's property market is was driven by investors looking for security and capital growth. Prime London residential property became a de facto reserve currency for the international rich. That security and capital growth now looks flaky and you can bet your bottom dollar/yuan/rouble that demand will be evaporating.

There are also large rich expat European communities in London which will certainly stop growing. Many affluent French and Greek families moved to London over the past few years, they may well be considering their options and thinking it's time to move on.

Edited by InlikeFlynn

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True. London's property market is was driven by investors looking for security and capital growth. Prime London residential property became a de facto reserve currency for the international rich. That security and capital growth now looks flaky and you can bet your bottom dollar/yuan/rouble that demand will be evaporating.

There are also large rich expat European communities in London which will certainly stop growing. Many affluent French and Greek families moved to London over the past few years, they may well be considering their options and thinking it's time to move on.

A very good point.

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