CountingTheDays Posted June 23, 2020 Share Posted June 23, 2020 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. Quote Link to comment Share on other sites More sharing options...
longgone Posted June 23, 2020 Share Posted June 23, 2020 ? 20% deposit is only back of the sofa money anyway. just make it 50/50 Quote Link to comment Share on other sites More sharing options...
Locke Posted June 23, 2020 Share Posted June 23, 2020 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? Quote Link to comment Share on other sites More sharing options...
stop_the_craziness Posted June 23, 2020 Share Posted June 23, 2020 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. Quote Link to comment Share on other sites More sharing options...
Trump Invective Posted June 23, 2020 Share Posted June 23, 2020 (edited) 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 June 23, 2020 by Trump Invective Quote Link to comment Share on other sites More sharing options...
spyguy Posted June 23, 2020 Share Posted June 23, 2020 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. Quote Link to comment Share on other sites More sharing options...
Locke Posted June 23, 2020 Share Posted June 23, 2020 (edited) 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 June 23, 2020 by Locke Quote Link to comment Share on other sites More sharing options...
Habeas Domus Posted June 23, 2020 Share Posted June 23, 2020 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 Quote Link to comment Share on other sites More sharing options...
Unmoderated Posted June 23, 2020 Share Posted June 23, 2020 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. Quote Link to comment Share on other sites More sharing options...
tm_81 Posted June 23, 2020 Share Posted June 23, 2020 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. Quote Link to comment Share on other sites More sharing options...
Kosmin Posted June 23, 2020 Share Posted June 23, 2020 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%. Quote Link to comment Share on other sites More sharing options...
Warlord Posted June 23, 2020 Share Posted June 23, 2020 I suspect the government banks( (RBS/NatWest/LLoyds) will soon step in with some kind of scheme. Quote Link to comment Share on other sites More sharing options...
Si1 Posted June 23, 2020 Share Posted June 23, 2020 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. Quote Link to comment Share on other sites More sharing options...
spyguy Posted June 23, 2020 Share Posted June 23, 2020 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. Quote Link to comment Share on other sites More sharing options...
Si1 Posted June 23, 2020 Share Posted June 23, 2020 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. Quote Link to comment Share on other sites More sharing options...
Huggy Posted June 23, 2020 Share Posted June 23, 2020 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%! Quote Link to comment Share on other sites More sharing options...
Warwick-Watcher Posted June 24, 2020 Share Posted June 24, 2020 18 hours ago, Warlord said: I suspect the government banks( (RBS/NatWest/LLoyds) will soon step in with some kind of scheme. NINJA loans? That's what 2-3 million people are going to need soon. Quote Link to comment Share on other sites More sharing options...
winkie Posted June 24, 2020 Share Posted June 24, 2020 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. Quote Link to comment Share on other sites More sharing options...
fatspanner Posted June 24, 2020 Share Posted June 24, 2020 https://www.ftadviser.com/mortgages/2020/06/22/half-of-buyers-denied-mortgage-despite-agreement-in-principle/ Quote Link to comment Share on other sites More sharing options...
Deckard Posted June 24, 2020 Share Posted June 24, 2020 27 minutes ago, fatspanner said: https://www.ftadviser.com/mortgages/2020/06/22/half-of-buyers-denied-mortgage-despite-agreement-in-principle/ It's just the beginning. Wait until mass redundancies kick in... Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted June 24, 2020 Share Posted June 24, 2020 Looks like it. On verra. Quote Link to comment Share on other sites More sharing options...
hurlerontheditch Posted June 25, 2020 Share Posted June 25, 2020 Quote 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 Quote Link to comment Share on other sites More sharing options...
Killer Bunny Posted June 25, 2020 Share Posted June 25, 2020 Luvvly Jubbly! Quote Link to comment Share on other sites More sharing options...
Warwick-Watcher Posted June 25, 2020 Share Posted June 25, 2020 15 hours ago, fatspanner said: https://www.ftadviser.com/mortgages/2020/06/22/half-of-buyers-denied-mortgage-despite-agreement-in-principle/ Or buy in Scotland and don't even bother with a deposit! https://www.ftadviser.com/mortgages/2020/06/19/scottish-lender-removes-deposit-requirement-for-ftb/ Quote Link to comment Share on other sites More sharing options...
Warwick-Watcher Posted June 25, 2020 Share Posted June 25, 2020 2 hours ago, hurlerontheditch said: https://www.mumsnet.com/Talk/property/3948839-Am-I-being-unnecessarily-anxious 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. Quote Link to comment Share on other sites More sharing options...
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