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Low-deposit mortgages return after Covid slump


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https://www.bbc.co.uk/news/business-55736160

In early September last year, there were only 44 mortgage products available for those able to offer a 10% deposit. At the same time, first-time buyers putting money aside for a deposit were faced with pressures of poor savings rates and rising house prices.

That choice has now risen to 197 products, according to the Moneyfacts figures, with some big lenders returning in recent weeks.

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They increased the limit due to demand at the time.

They had soo many borrowers that they rather take the best and filter out the junk borrowers, now demand must of dropped off for them to offer it to junk borrowers again.

 

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12 minutes ago, jiltedjen said:

They increased the limit due to demand at the time.

They had soo many borrowers that they rather take the best and filter out the junk borrowers, now demand must of dropped off for them to offer it to junk borrowers again.

 

Must be rainy on the stamp duty holiday

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1 minute ago, Pebbles said:

Same record on constant playback since MMR announced outcome is house prices have risen and continue to rise since then.

MMR is pointless, IRs will never go up too more debt in the system. 

Inflation will just be controlled by tax instead IRs (MMT). 

House prices can still go up 20% in theory if IRs remain the same. 

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MMR and BOE funding are 2 sides to the same 'fudge the market' coin.  Let risk be priced correctly and IR and multiples would adjust.  They are being forced to lend, hence putting products in the market but they also know the risk of default and are restricting them.

Extend and Pretend only lasts for a time...

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2 minutes ago, msi said:

MMR and BOE funding are 2 sides to the same 'fudge the market' coin.  Let risk be priced correctly and IR and multiples would adjust.  They are being forced to lend, hence putting products in the market but they also know the risk of default and are restricting them.

Extend and Pretend only lasts for a time...

I agree, ponzi system. 

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13 minutes ago, msi said:

MMR and BOE funding are 2 sides to the same 'fudge the market' coin.  Let risk be priced correctly and IR and multiples would adjust.  They are being forced to lend, hence putting products in the market but they also know the risk of default and are restricting them.

Extend and Pretend only lasts for a time...

Extend and Pretend only lasts for a time...

15 years ++  and counting

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1 hour ago, Pebbles said:

Same record on constant playback since MMR announced outcome is house prices have risen and continue to rise since then.

Nominal house prices near me have not shifted since since 2004.

And thats only been managed with low IRs and 30% of what was normal transaction.

MMR has hammered them.

London appears to be have falling for a good few years. I dont think it's going to do well post covid.

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2 hours ago, spyguy said:

Nominal house prices near me have not shifted since since 2004.

And thats only been managed with low IRs and 30% of what was normal transaction.

MMR has hammered them.

London appears to be have falling for a good few years. I dont think it's going to do well post covid.

Seriously what have you been smoking? https://www.telegraph.co.uk/news/2021/01/20/house-prices-london-pass-500000-first-time/

 

Sorry wrong again.

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6 hours ago, jiltedjen said:

They increased the limit due to demand at the time.

They had soo many borrowers that they rather take the best and filter out the junk borrowers, now demand must of dropped off for them to offer it to junk borrowers again.

 

Exactly, rates are also creeping back down, there may have been a bit of risk averse behaviour last spring. But by October it was straightforward demand management, they couldn't process all applications, so they took safer ones at higher margins. I presume they're starting to get through the backlog, so they actually have to encourage business now.

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9 hours ago, Pebbles said:

Seriously what have you been smoking? https://www.telegraph.co.uk/news/2021/01/20/house-prices-london-pass-500000-first-time/

 

Sorry wrong again.

Heres a chart for UK mortgage mortgage approvals:

mortgage-lending-spiked-in-april-value-b

Sadly it starts 2008 so you dont get to appreciate the actual fall off in lending.

Al of those mortgages sold with be either HTB or in London/SE.

HTB is a disaster.

London.Se is crashing post covid.

The mortgage market, as people got to know it ~mid 1970s to ~2008 is over.

The UK economy model, which had a large, expanding, highly leverage finsec died in 2008.

 

 

 

 

 

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4 minutes ago, spyguy said:

Heres a chart for UK mortgage mortgage approvals:

mortgage-lending-spiked-in-april-value-b

Sadly it starts 2008 so you dont get to appreciate the actual fall off in lending.

Al of those mortgages sold with be either HTB or in London/SE.

HTB is a disaster.

London.Se is crashing post covid.

The mortgage market, as people got to know it ~mid 1970s to ~2008 is over.

The UK economy model, which had a large, expanding, highly leverage finsec died in 2008.

Any charts which extend to present day? Cheers

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1 minute ago, Locke said:

Any charts which extend to present day? Cheers

Takes a bit to bubble.

Im willing to be that mortgage approval for 2020 will be well below 2019.

And 2021 will be well below 2020.

The mortgage driven housign market has been having several k volts of electro probe shoved to its chest, in an attempt to revive it - HTB being the main one.

Remove HTB - which they'll have to when the HTB disaster tales and very large losses UKGOV face - and the is barely a housign market.

 

 

 

 

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6 minutes ago, spyguy said:

Takes a bit to bubble.

Im willing to be that mortgage approval for 2020 will be well below 2019.

And 2021 will be well below 2020.

The mortgage driven housign market has been having several k volts of electro probe shoved to its chest, in an attempt to revive it - HTB being the main one.

Remove HTB - which they'll have to when the HTB disaster tales and very large losses UKGOV face - and the is barely a housign market.

Thought so. It will be interesting to see. I have never experienced other market periods, but it feels pretty awful.

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