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What The Banks Think Will Happen

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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?

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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.

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  • 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%



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