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From This Is Money today:

Banks risk a mortgage credit crunch as 90% of small deposit home loans are axed in lockdown

Juicy quote:

Quote

Lenders are pulling deals faster than they did during the financial crash.

We found:

The number of 95% LTV mortgages was down 96%
The number of 90% LTV mortgages was down 90% 
The number of 85% mortgages was down 49% 
The number of 80% mortgages was down 20% 

So nigh on impossible to get a mortgage with a 10% deposit and a significant reduction in range even for those with 20% - at least for now.

And with furlough beginning to wind down and a likely second wave coming (see the US daily case graph for what might be in store), you'd have to be delusional (or an EA) to bet on the UK housing market for the foreseeable.

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Looks like 95, 90 and 85% loans are off  the table.

So let's say the most you can get is a 4x leverage loan (80% LTV)

When you could get 95%, £10k would get you £200k of house

Now it gets you £50k of house.

 

Some people's on here predictions of an 80% fall aren't looking so outlandish now are they?

 

Ah but the housing market is looking at a bounce back, right?

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11 minutes ago, Locke said:

Looks like 95, 90 and 85% loans are off  the table.

So let's say the most you can get is a 4x leverage loan (80% LTV)

When you could get 95%, £10k would get you £200k of house

Now it gets you £50k of house.

 

Some people's on here predictions of an 80% fall aren't looking so outlandish now are they?

 

Ah but the housing market is looking at a bounce back, right?

I had to read that several times because the maths is so scary I was convinced it MUST be wrong.

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13 minutes ago, Locke said:

Looks like 95, 90 and 85% loans are off  the table.

So let's say the most you can get is a 4x leverage loan (80% LTV)

When you could get 95%, £10k would get you £200k of house

Now it gets you £50k of house.

 

Some people's on here predictions of an 80% fall aren't looking so outlandish now are they?

 

Ah but the housing market is looking at a bounce back, right?

Sounds sensible, but that wont wash with the VIs in charge of the funny money

Edited by Trump Invective
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That's just the initial offer.

Id guess that you are not going to get a mortgage approved unless you have the squeakiest clean of credit and a well paying job.

 

 

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31 minutes ago, Trump Invective said:

 

Sounds sensible, but that wont wash with the VIs in charge of the funny money

Sure, but then they are attacking the very concept of value and the price of a house is not going to matter one whit to anyone.

Edited by Locke
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1 hour ago, stop_the_craziness said:

I had to read that several times because the maths is so scary I was convinced it MUST be wrong.

House price 5% deposit 15% deposit
25000 1250 3750
50000 2500 7500
75000 3750 11250
100000 5000 15000
125000 6250 18750
150000 7500 22500
175000 8750 26250
200000 10000 30000
225000 11250 33750
250000 12500 37500
275000 13750 41250
300000 15000 45000
325000 16250 48750
350000 17500 52500
375000 18750 56250
400000 20000 60000
425000 21250 63750
450000 22500 67500
475000 23750 71250
500000 25000 75000
525000 26250 78750
550000 27500 82500
575000 28750 86250
600000 30000 90000
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Looks like HTB is the only option then for those with a low deposit. 

2 hours ago, Locke said:

Looks like 95, 90 and 85% loans are off  the table. - they aren't there's just less competition

So let's say the most you can get is a 4x leverage loan (80% LTV) - ok 

When you could get 95%, £10k would get you £200k of house - yep

Now it gets you £50k of house.

 

Some people's on here predictions of an 80% fall aren't looking so outlandish now are they? - yes, your illustration above demonstrates a 75% reduction. It's also not gonna happen. 

 

Ah but the housing market is looking at a bounce back, right? - I wouldn't go that far, it'll take a hit, but it isn't going to collapse like that. 

 

Go on, bring up Japan. I love that one. 

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damn,

I have worked hard to bring down my LTV to 62% (based on 2013 purchase price). or 35% (based  on crazy current Zoopla estimate), and even I am scared of what is to come.

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3 hours ago, Locke said:

When you could get 95%, £10k would get you £200k of house

Now it gets you £50k of house.

Some people's on here predictions of an 80% fall aren't looking so outlandish now are they?

Are many buyers getting 95% or 90% mortgages? I would have thought the majority were putting down at least 15-20%.

 

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15 minutes ago, Warlord said:

I suspect the government banks( (RBS/NatWest/LLoyds) will soon step in with some kind of scheme. 

You do wonder what Andrew Bailey will do. Is he any different to Carney?

We all know what Carney would have done.

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10 minutes ago, Si1 said:

You do wonder what Andrew Bailey will do. Is he any different to Carney?

We all know what Carney would have done.

Ive heard - and I cant confirm - that Bailey *hates( the gormless ******wittery at the UK that led to 2008.

And he *hates* IO lending.

As it stands, the BoE have held the MMR rules on lending.

I can see the reflection of MMR limits in sold prices.

 

 

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5 minutes ago, spyguy said:

Ive heard - and I cant confirm - that Bailey *hates( the gormless ******wittery at the UK that led to 2008.

And he *hates* IO lending.

As it stands, the BoE have held the MMR rules on lending.

I can see the reflection of MMR limits in sold prices.

 

 

Fingers crossed. 

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4 hours ago, Locke said:

Looks like 95, 90 and 85% loans are off  the table.

So let's say the most you can get is a 4x leverage loan (80% LTV)

When you could get 95%, £10k would get you £200k of house

Now it gets you £50k of house.

 

Some people's on here predictions of an 80% fall aren't looking so outlandish now are they?

 

Ah but the housing market is looking at a bounce back, right?

80% minimum ? I'd raise a small smile if it was 90%!

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On 23/06/2020 at 14:13, longgone said:

?

20% deposit is only back of the sofa money anyway. just make it 50/50 

That is the going criteria for lending to business..... greater potential but greater risk are told decline, come back another day......that day will never come, the moment gone......lenders are risk adverse unless backed-up and secured by other means.....a guarantee.;)

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All has been going well, mortgage accepted, chain complete etc.

Today the estate agents who are selling ours contact us to answer questions about our offer of leaving the fridge etc during this phone call he mentioned that the delay at the moment is the fact the buyer can't get a mortgage. She's a Ftb I think and has a 10% deposit and they are not managing to get her mortgage.

https://www.mumsnet.com/Talk/property/3948839-Am-I-being-unnecessarily-anxious

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2 hours ago, hurlerontheditch said:

Mumsnet quote.

Estate Agents are currently treating proceedable buyers like gold dust. Banks have serious staff shortages and the covid situation is still playing out. According to our EA, they are seeing fewer buyers, but the ones they are seeing are all serious about buying and moving. They are refusing viewings to people who do not have proof of funds.

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  • 418 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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