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Govt to offer financial guarantees to banks to lend 95% mortgages and abandon post credit crunch regulation


Si1

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HOLA441
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HOLA443

To show that a 95% mortgage isnt an issue:

FTBer has a household income of 50k. They want to buy a 150k house.

They only have a 7k deposit.

This would be exceptional- the cost of high LTV (90%_) v lower LTV (under 80%) means it make sense to get a bigger deposit as poss

However a bank would, current lending lockdown aside, be happy to lend them 143k a mortgage and take their higher loan payments.

The issue is when someone wants a 95% mortgage *AND*have a high (4.5+) LTE ratio.

 

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HOLA444
 

 

 

The guts (MA) is a moron/liar - 'This all comes from 30 years ago when too much money chased too many homes'

There was no problem by the early 90s. By then, the bubble had been burst and banks were lending little.

The problems the UK has come from 2002-2008.

 

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HOLA445
 

do you believe one of the reasons they want to get rid of the 'stress test" because they know that interest rates will never go up again? effectively the 'stress test' is pointless

It suits the govt to think that, but it may not be true

https://books.google.co.uk/books/about/The_Great_Demographic_Reversal.html?id=rEz2DwAAQBAJ&printsec=frontcover&source=kp_read_button&redir_esc=y

 

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HOLA446
5 hours ago, MarkG said:

If Elon Musk is to be believed, it will soon be cheaper to buy a flight to Mars than a starter home in the UK.

maybe when he can build a car properly. tesla is good for shares just not he bland boring poorly screwed together over priced products they churn out. bit like apple really. 😂

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HOLA447
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HOLA448
 

I think the market would get going faster without all those coffin dodgers rattling around in large family homes, being subsidised to do so. And that's related.

all the older folk I know who own a house have paid their mortgage off. They have the right to stay in a house they own for as long as they wish.  

 

 

That article annoyed me.

suprised

 

 

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HOLA449
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HOLA4410
 

Concentrate on something other than home ownership for a bit. F**k UK gov, f**k housing and f**k any parasitic thought that's sucking the life out of you.

Property should not be what anyone is obsessed with a house is just a place to live in.  what is important is family and friends and hobbies that you enjoy doing. 

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HOLA4411
 

I couldn't agree more. I'd just like to add, turn off the news. Simply stop absorbing news. Stop looking at Worldometers. Stop reading fakebook and Twatter. It's incredible how quickly you begin feeling better, and how much focus then goes onto the things you enjoy in life.  

Agree - FB and twit is full of self entitled politically correct snowflakes 

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HOLA4412
 

all the older folk I know who own a house have paid their mortgage off. They have the right to stay in a house they own for as long as they wish.  

 

suprised

 

 

Straw man. You're embarrassing yourself as usual.

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HOLA4413
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HOLA4414
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HOLA4415
 

Or until they can no longer afford to eat or pay council tax, then they have to sell.

FGS 

 

 

Straw man. You're embarrassing yourself as usual.

No you are . I think you wuill ind that no one can make them leave :) Sam e as when you buy a house you can stay in it if you want to :() 

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HOLA4416
On 04/10/2020 at 10:15, goldbug9999 said:

So what are people going to do then - vote labour ?? the same labour party who kicked off the house price boom and stoked it for 15 years by deregulating buy to let lending, the labour party who first sanctioned QE to prop up asset prices for the wealthy, the labour party who presided over the slashing of interest rates to bail out home owners etc etc etc.

I can vote Labour and have high house prices AND even more crushing levels of taxation ! great, when do we start.

That's more like it. Good little prole. Don't worry. We'll be along to crash your gold prices soon.

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  • 2 weeks later...
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HOLA4420
 

Mr Johnson has asked ministers to work up plans for encouraging long-term fixed-rate mortgages with five per cent deposits. They are likely to involve reversing regulatory changes made in the wake of the financial crash that have required banks to stress-test applicants. By removing stress tests, banks would be able to offer 95 per cent loans, as was the norm 15 years ago.

The possibility of the government reversing the MMR changes does worry me.

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HOLA4422
 

A main theme of that book is a big rise in the elderly (and dependant) generation.

That may or may not happen.

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HOLA4423
 

The guts (MA) is a moron/liar - 'This all comes from 30 years ago when too much money chased too many homes'

There was no problem by the early 90s. By then, the bubble had been burst and banks were lending little.

The problems the UK has come from 2002-2008.

 

I would say 2000, it started rising. slowly, into a full blown riot come 2002

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HOLA4424
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HOLA4425
 

A main theme of that book is a big rise in the elderly (and dependant) generation.

That may or may not happen.

Demographics, particularly of older cohorts, do appear to be pretty predictable. I think the whole problem from an economic prediction perspective is that they generally don't accommodate demographics on their analyses/ models. Of course you can't model everything, models are a necessary simplification of reality.

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