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gruffydd

New Mortgage Frenzy - The Times

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https://www.thetimes.co.uk/article/weve-seen-a-mortgage-frenzy-before-look-how-that-turned-out-q7sm25vkr

"It feels like 2006, when banks were offering startlingly cheap mortgages, huge income multiples and massive loan-to-values, justifying it all by arguing that the cost of funding was low."

Sadly couldn't read the bit about the bile-filled letter the writer received from a boss at the Halifax back in 2006! What had he written to so-offend the banker? 

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2 minutes ago, gruffydd said:

https://www.thetimes.co.uk/article/weve-seen-a-mortgage-frenzy-before-look-how-that-turned-out-q7sm25vkr

"It feels like 2006, when banks were offering startlingly cheap mortgages, huge income multiples and massive loan-to-values, justifying it all by arguing that the cost of funding was low."

Sadly couldn't read the bit about the bile-filled letter the writer received from a boss at the Halifax back in 2006! What had he written to so-offend the banker? 

I read that article in print. The journo had written to the back asking if the mortgages being written were all sound, and the bank boss had written back to the journo, angrily saying that the question showed he hadn't got a clue how banking worked.

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42 minutes ago, rantnrave said:

I read that article in print. The journo had written to the back asking if the mortgages being written were all sound, and the bank boss had written back to the journo, angrily saying that the question showed he hadn't got a clue how banking worked.

I'll take that as a no then. 

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The other angle in this piece was that new regulations separating the different arms of banking have left lenders with a surplus of funds they are struggling to find a use for. This has sparked a mortgage war which is so intense the likes of Tesco Bank have decided its time to leave that market.

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2 minutes ago, rantnrave said:

The other angle in this piece was that new regulations separating the different arms of banking have left lenders with a surplus of funds they are struggling to find a use for. This has sparked a mortgage war which is so intense the likes of Tesco Bank have decided its time to leave that market.

The easiest way to extend the life of a Ponzi scheme is by reinvesting your fraudulent profits.

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6 minutes ago, zugzwang said:

The easiest way to extend the life of a Ponzi scheme is by reinvesting your fraudulent profits.

Indeed.

No chance they might have paid back all the Term Funding Scheme money early...

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Not sen i nthe actual mortgage number.

Set to 'Max'

https://tradingeconomics.com/united-kingdom/mortgage-approvals

170,000 of those mortgages rely on HTB.

And Id guess a fair few are BTL too - cahrt does not ndicate resi / BTL mortgages.

Remove HTB and the UK is only issuing ~40k mortgages/month.

UK needs ~80K to keep up with the Ds - death divorce n debt.

The onyl dodgy money is HTB and the small number borrowing outside of MMR rules.

 

 

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Th

2 hours ago, rantnrave said:

I read that article in print. The journo had written to the back asking if the mortgages being written were all sound, and the bank boss had written back to the journo, angrily saying that the question showed he hadn't got a clue how banking worked.

Thanks for the info on the article - btw re: Tesco - noticed Deutsche Bank has just re-entered the top end of the market (as opposed to the bottom end, which they targeted before) https://www.mortgagestrategy.co.uk/deutsche-bank-returns-uk-mortgage-market/

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51 minutes ago, spyguy said:

Not sen i nthe actual mortgage number.

Set to 'Max'

https://tradingeconomics.com/united-kingdom/mortgage-approvals

170,000 of those mortgages rely on HTB.

And Id guess a fair few are BTL too - cahrt does not ndicate resi / BTL mortgages.

Remove HTB and the UK is only issuing ~40k mortgages/month.

UK needs ~80K to keep up with the Ds - death divorce n debt.

The onyl dodgy money is HTB and the small number borrowing outside of MMR rules.

 

I would think most homes are unencumbered or very little outstanding, low rates over the years has seen the debt paid down.......freedom at last, who in their right mind after paying off for many years would take on more and jeopardise their retirement?.....at death ownership is passed on to a new owner or used to repay more secured debt.....yes to the last bit.......the lenders must be desperate.;)

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20 minutes ago, winkie said:

I would think most homes are unencumbered or very little outstanding, low rates over the years has seen the debt paid down.......freedom at last, who in their right mind after paying off for many years would take on more and jeopardise their retirement?.....at death ownership is passed on to a new owner or used to repay more secured debt.....yes to the last bit.......the lenders must be desperate.;)

Very true.

And youve a lot of housing stock about to hit probate.

Home ownership has become skewed out of shape, being vastly over-concentrated in the over 55. Theyve few to sell to.

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19 minutes ago, spyguy said:

Very true.

And youve a lot of housing stock about to hit probate.

Home ownership has become skewed out of shape, being vastly over-concentrated in the over 55. Theyve few to sell to.

If there are very many more probate sales coming onto the market and a few to sell to they will just have to lower the price, take the money and run.....expensive keeping a house empty.....letting it out, who could be bothered with all that malarkey?;)

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Of course one simple solution  to too many mortgages chasing too few buyers would be reduce the number of banks.

Its is meant to be market after all ....

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42 minutes ago, winkie said:

If there are very many more probate sales coming onto the market and a few to sell to they will just have to lower the price, take the money and run.....expensive keeping a house empty.....letting it out, who could be bothered with all that malarkey?;)

Really ? after council tax what is there to pay to keep it empty nearly all probate sales will have no debt attached apart from any death duties to pay.

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1 hour ago, spyguy said:

Of course one simple solution  to too many mortgages chasing too few buyers would be reduce the number of banks.

Its is meant to be market after all ....

Alternatively the govt could lend potential buyers the deposit - ahem Andrea Leadsom the former banker - ahem

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57 minutes ago, longgone said:

Really ? after council tax what is there to pay to keep it empty nearly all probate sales will have no debt attached apart from any death duties to pay.

Insurance, damp, vandalism, taxes, utility standing charges......and of course value depreciation.;)

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1 hour ago, longgone said:

Really ? after council tax what is there to pay to keep it empty nearly all probate sales will have no debt attached apart from any death duties to pay.

Ctax, utilities - youve got to keep them connected, building insurance which gets expensive for empty homes, maintenance again more for an empty home,

 

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4 hours ago, winkie said:

Insurance, damp, vandalism, taxes, utility standing charges......and of course value depreciation.;)

insurance is a guaranteed cost i agree gas elec water not much though few hundred a year.

possibility of vandals maybe,  depreciation maybe, its about time this site is right for once.

The house next door has been empty 8 months but they have internet controlled lights and curtains to simulate home living 

put a "ring" connected door bell on the front and you can answer the door from anywhere in the world.😉  

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10 minutes ago, longgone said:

insurance is a guaranteed cost i agree gas elec water not much though few hundred a year.

possibility of vandals maybe,  depreciation maybe, its about time this site is right for once.

The house next door has been empty 8 months but they have internet controlled lights and curtains to simulate home living 

put a "ring" connected door bell on the front and you can answer the door from anywhere in the world.😉  

Eight months? I’d have just banged the rents up on the scumbag internet controlled lights and curtains after three months tops. 

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2 minutes ago, thewig said:

Eight months? I’d have just banged the rents up on the scumbag internet controlled lights and curtains after three months tops. 

LOL 

its not rented out the owner is away dealing with a probate abroad. 

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11 hours ago, longgone said:

LOL 

its not rented out the owner is away dealing with a probate abroad. 

It is the service that is rented, the gardener to cut the grass, standing charges, cameras, security,insurance so it goes on......get shot of it and do away with stuff that to begin with seems easy and cheap, get people dependant on it, need to keep it, then raise the rent/fee/costs......stuff can get very costly to hold on to......ask the owner of the manor house who needs to go away for a while.;)

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6 minutes ago, stop_the_craziness said:

Surely the non homeowning children and/or grandchildren of these dead oldsters will just move into the vacant house?  Or am I missing something?

Do you believe housing is fungible?

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7 minutes ago, stop_the_craziness said:

Surely the non homeowning children and/or grandchildren of these dead oldsters will just move into the vacant house?  Or am I missing something?

Rarely happens unless an only child.....but even then the home might be miles away from work and support networks.....more likely rented out or sold and divided.😉

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1 minute ago, Locke said:

Do you believe housing is fungible? 

I had to look that word up before I could answer!

It just seemed like the obvious thing that would happen, so I was just curious to know why it wouldn't.

Obviously in some cases the relatives won't live near enough or won't want the house for some other reason, but these must be instances where moving in to the house they've just inherited makes sense.

 

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12 minutes ago, stop_the_craziness said:

I had to look that word up before I could answer!

It just seemed like the obvious thing that would happen, so I was just curious to know why it wouldn't.

Obviously in some cases the relatives won't live near enough or won't want the house for some other reason, but these must be instances where moving in to the house they've just inherited makes sense.

 

With the State-sponsored fragmentation of families, people often have lives integrated far from their parents. Most people wouldn't tear up roots just to move into a house, which you may have to pay massive klepto IHT on

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  • 224 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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