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UK banks expect biggest mortgage lending cutback since 2008 (BoE)

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Increasingly cautious British lenders expect to scale back mortgage lending in the next three months by the greatest extent since the depths of the financial crisis in late 2008, a Bank of England survey showed on Thursday.

https://uk.reuters.com/article/us-britain-boe-lending/uk-banks-expect-biggest-mortgage-lending-cutback-since-2008-bank-of-england-idUKKCN1ML0ZT

QE to the moon, crash and burn, or both?

Q

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13 minutes ago, cashinmattress said:

Two quarters of risk aversion.. to factor Brexit uncertainty... by lenders is nothing.

Just a blip.

That's assuming the blip isn't a prelude to a no deal brexit supervolcano eruption.

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20 hours ago, happyguy said:

very sensible the lenders have been doing 4.5 x joint income again 

Boe allows ~15% of the new mortgage book to be 4.5 or above.

However they are not forthcoming what the punishment is if thosel loans default.

Most sensible banks that expect to be around i na feew years time will not lend anywhere near 4.5 income.

 

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1 hour ago, winkie said:

"Please sir, can I have some more." 😉

Well its the TFS free money.

Now banks have to comepte for capital, they are finding the costs pretty high now.

 

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39 minutes ago, spyguy said:

Boe allows ~15% of the new mortgage book to be 4.5 or above.

However they are not forthcoming what the punishment is if thosel loans default.

 

The 'punishment' will be a complete taxpayer funded bailout plus all sorts of measures designed to boost bank profitability.

 

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1 minute ago, Sour Mash said:

The 'punishment' will be a complete taxpayer funded bailout plus all sorts of measures designed to boost bank profitability.

 

Not now, no.

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15 minutes ago, bear.getting.old said:

They can't do that, not with rising inflation

Except there is no domestic inflation! The UK is flatlining. Hence the need for more public spending and/or QE.

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On 11/10/2018 at 13:07, happyguy said:

very sensible the lenders have been doing 4.5 x joint income again 

Which is still nuts, IMO. My memory may be failing me in middle age, but I seem to remember the standard being 3x single or 2x joint many years ago (before all this madness started).

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35 minutes ago, mattyboy1973 said:

Which is still nuts, IMO. My memory may be failing me in middle age, but I seem to remember the standard being 3x single or 2x joint many years ago (before all this madness started).

Up til mid 90s it was 3x highest + 1x lowest.

MMR is up to 4.5 household income minus any regular spend and existing debt.

 

 

 

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Plus your probably taking on a debt of 4.5x household income when you are in your 40s instead of in your 20/30s.

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  • 261 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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