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Barclays looks to tighten UK lending

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BBC news reports it's Brexits fault, whilst giving a casual mention of things like LTV in London and South East may be under scrutiny... Surely a sign they see falls (sorry, negative growth) continuing?

Every month without fail I get a letter from them telling me I could have a 35k loan over 5 years, to me this move is a good thing, after all people don't take responsibility for their own debt nowadays 

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Yes reported on BBC R4 10 o'clock news...specifically referred to London and SE...Barclays to review LTV policy. Also they are concerned about broader exposure to UK economy. 

Will watch out for this in tomorrows press, I think significant. If real and if other lenders follow it will create vicious ,I mean virtuous circle.

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Basel3 is kicking into effect... Still a crash requires interest rates to rise... LIBOR has already started the increase in mortgage rates... just need a few hikes as a final nails in the coffin  of UK super con economy.

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This is the BBC's take...

https://www.bbc.co.uk/news/business-44323693

 

Barclays is tightening its lending criteria to a UK economy that is lagging behind the rest of the world.

Chief executive Jes Staley says Brexit uncertainty was helping to stunt economic growth and that was something the bank could not ignore.

Speaking exclusively to the BBC he said "we have to be mindful of weaknesses in the economy and we have protect the integrity of the bank".

That meant tightening some lending criteria, "just to be prudent".

"In no way do we pull back in a radical fashion - but we will look at our credit exposures and see whether that's proper given the direction of the economy," Mr Staley said.

"We can at the margin tighten some of our underwriting criteria and credit standards just to be prudent for the stability of the bank."

The UK economy is still growing - but very slowly. In the last 12 months it has grown 1.2% compared with 2.2% in the US and 2.5% in the eurozone.

Mr Staley said measures might include looking at how big a loan Barclays would be prepared to provide as a percentage of the value of a residential property - the so called loan to value ratio - particularly in London and the South East.

....

Suggestion this is down to Brexit is smoke screen  - this is due to residential prices being obviously unsustainably high and likely to correct in the near term.

 

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Natural outcome of treating a debt laden society with more debt. Once enough people are tapped out the economy grinds to a halt and lenders withdraw. Government response will be to underpin more debt. Collapse baked in. Tick tock.

 

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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