Jump to content
House Price Crash Forum
Sign in to follow this  

What The Banks Think Will Happen

Recommended Posts

Has anyone noticed that banks are now requiring larger and larger deposits as a % of total price?

I think the value of the deposit and demanded quality credit history could be a good indication of what the banks really think may happen to the housing market. In boom times they will happily lend 110% to everyone no matter what there credit history because if house prices keep rising they can easily get their money back by repossessing and then selling the house. Multiples of salary really don’t come into this since banks look at their own risk and its the risk of them loosing money not the person defaulting on the loan. Times are changing now and in times of static or declining house prices the banks own money would be on the line if they offer 110%.

So for people buying now how much do the banks demand you put down as a deposit and how worried are they about negative equity?

Share this post

Link to post
Share on other sites

I don't think we're fully there yet. Banks are still offering 100% and over mortgages, although the charges (% etc) are much much higher. Although, to get the best deals you do need a good deposit.

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.