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TheCountOfNowhere

When the banks can't lend...

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13 minutes ago, TheCountOfNowhere said:

Sales volumes are plummeting.

Stock held by agents are plummeting.

What happens to the banks when they have no one to lend to ?

 

They get handed your savings.

Doubles all round 

Edited by Fromage Frais

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Even when they knew they were going bust there are stories of some of the Irish banks still giving out jumbo mortgage loans of €1million plus with very little checking back in 08. Bank got bailed out. Individuals didn't.

Caveat emptor.

Caveat borrower even.

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33 minutes ago, TheCountOfNowhere said:

Sales volumes are plummeting.

Stock held by agents are plummeting.

What happens to the banks when they have no one to lend to ?

 

I don't know but I expect the tax payer has a role to play...

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40 minutes ago, TheCountOfNowhere said:

Sales volumes are plummeting.

Stock held by agents are plummeting.

What happens to the banks when they have no one to lend to ?

 

They borrow from each other to give money to each other and when it goes wrong the taxpayer coughs up and the printers start up.

As they're always first in line for the money before it gets devalued that suits them fine.

Edited by billybong

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im in this boat, i got quite a nice deposit ready but in september new max loan to income mortgage regulations hit reducing the amount a bank can lend me, at this point im probably better of buying a house with cash, credit cards and a lone the restrictions are so tight. 

at the current prices im waiting it out for a drop in the market atm, dont worry though, most of my $$s are being moved out of uk banks cause they are pretty useless to me now days

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17 minutes ago, happyrichie said:

im in this boat, i got quite a nice deposit ready but in september new max loan to income mortgage regulations hit reducing the amount a bank can lend me, at this point im probably better of buying a house with cash, credit cards and a lone the restrictions are so tight. 

Is that a UK regulation? 1st I've heard of it. Is that the trigger we need?

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this september, i think it was a bank of international settlements recommendation which is being implemented, i believe i will be stress tested at a mortgage rate of 7.1ish% when the corrections 2 the current advisory limit is changed. There seems 2 be less loop poles out of it this time, tightening up the exceptions 2 the rule, eg. a bank must lend 55% of customers a LTV of 4.5x income is gona be changed 2 make it harder so that less of the 45% mortgages hit stupid amounts of something along those lines.

in reality i think i will be limited 2 3.5x income because of the interest rate i will be tested against after september unless i become 1 of those exceptions 2 the rule which there will be less of.

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Perhaps related to the measures announced by the FPC last month:

Quote

Bank of England tightens credit rules for banks after Brexit resilience

...The BoE also said regulators would publish tighter rules on consumer lending next month and it would bring forward to September from November its checks on whether banks could cope with consumer loans losses.

...Existing restrictions on high loan-to-income mortgage lending were likely to stay for the long term, the BoE said, and it also tweaked the rate against which lenders must test borrowers' ability to repay their mortgages.

http://uk.reuters.com/article/uk-britain-boe-idUKKBN19I0YT

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im not 2 bothered about it though, i use disciplined accounting not like the banks so if i get a mortgage it will effectively be a lot cheaper than the stress test by a country mile, either way i can afford just waiting on a more sound investment cause u know, buy on the way down init.

and yes, i believe that these slightly tighter mortgage lending criteria are gona constrict the property market due to the lack of FTB's hitting the market, u got 2 remember its been immigrants and foreign investors buying up the market these last couple years, now we are facing a situation where the millennium kids have got 2 start saving up and take over but how the ****** they gona get these kinds of deposits beats me. ive met very few younger people who have the disposable income ive got, most are poor as ****** or totally in debt.

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21 hours ago, TheCountOfNowhere said:

Sales volumes are plummeting.

Stock held by agents are plummeting.

What happens to the banks when they have no one to lend to ?

 

Lend money to anyone that will buy shares in their own bank.

e.g. See Barclays/Qatar court case.

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Nationwide are lending to me

Im going to be a landlord on a 95% LTV and they are allowing me to let the property from day 1 (residential mortgage)

Doesnt seem like they had any problems giving me money....

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5 minutes ago, mchlpeel said:

Nationwide are lending to me

Im going to be a landlord on a 95% LTV and they are allowing me to let the property from day 1 (residential mortgage)

Doesnt seem like they had any problems giving me money....

I see you've posted that in a few different threads now, congratulations! That sounds like a wise investment!

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1 minute ago, darkmarket said:

I see you've posted that in a few different threads now, congratulations! That sounds like a wise investment!

Correct, I noticed that the 2 threads were very similar, so relevant to both.

 

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15 minutes ago, mchlpeel said:

Nationwide are lending to me

Im going to be a landlord on a 95% LTV and they are allowing me to let the property from day 1 (residential mortgage)

Doesnt seem like they had any problems giving me money....

Is it your only property?

Just to clarify they've let you have a residential mortgage with consent to let before you've even got possession?

Intriguing.

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6 minutes ago, mchlpeel said:

Correct, I noticed that the 2 threads were very similar, so relevant to both.

You're suggesting that to hide from the buy to let regulations lenders are pushing borrowers onto residential mortgages?

20x leverage on this market is a brave trade for you and for Nationwide.

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1 minute ago, Sancho Panza said:

Is it your only property?

Just to clarify they've let you have a residential mortgage with consent to let before you've even got possession?

Intriguing.

Yes its my only property (or will be).

There is a trick here that I neglected to mention.

Im in the Armed Forces, and one of the lesser known perks is that most banks will waiver the usual 6 months waiting time to get consent to let.

The is provided I intend to live there after the military. As an added bonus I wont be liable for capital gains or stamp duty.

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19 minutes ago, mchlpeel said:

Nationwide are lending to me

Im going to be a landlord on a 95% LTV and they are allowing me to let the property from day 1 (residential mortgage)

Doesnt seem like they had any problems giving me money....

I've sent them an email to ask about this.  You might expect the police to visit you at some point if you have lied on your mortgage application.

 

Good luck.

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3 minutes ago, Sancho Panza said:

Is it your only property?

Just to clarify they've let you have a residential mortgage with consent to let before you've even got possession?

Intriguing.

Illegal :lol:  See my post above.  Brown pants time if you've committed fraud buddy.

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1 minute ago, mchlpeel said:

Yes its my only property (or will be).

There is a trick here that I neglected to mention.

Im in the Armed Forces, and one of the lesser known perks is that most banks will waiver the usual 6 months waiting time to get consent to let.

The is provided I intend to live there after the military. As an added bonus I wont be liable for capital gains or stamp duty.

Brilliant, you're willing to kill people in the name of the queen and be a landlord too, you're a fine man :lol: 

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Just now, TheCountOfNowhere said:

Illegal :lol:  See my post above.  Brown pants time if you've committed fraud buddy.

Erm.... not illegal at all. 

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Just now, mchlpeel said:

Yes its my only property (or will be).

There is a trick here that I neglected to mention.

Im in the Armed Forces, and one of the lesser known perks is that most banks will waiver the usual 6 months waiting time to get consent to let.

The is provided I intend to live there after the military. As an added bonus I wont be liable for capital gains or stamp duty.

You must be in the green slime....B)

Fair play to you.

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