Jump to content
House Price Crash Forum
Sign in to follow this  
It is different this time

Britain's Fifth Largest Mortgage Lender Warns

Recommended Posts

http://www.thisismoney.co.uk/mortgages/hou..._id=57&ct=5

House prices 'poised for sudden slowdown

Nick Goodway, Evenbing Standard

25 July 2007

House prices could slow down sharply over the coming six months, Britain's fifthlargest mortgage lender warned today.

Northern Rock said that house prices, which last month showed annual increases of just over 10%, could be rising at the same level as wages by the year-end, which would mean by as little as 4%.

'Because so many people now have fixedrate mortgages generally running for two or three years the recent hikes in interest rates have so far only affected around a third of borrowers,' said chief executive Adam Applegarth.

'But during the second half they will begin to bite and household spending will be squeezed. That will dampen the home moving market but, conversely, boost the remortgage market as people search for the best deal.'

He added: 'If you take out the central London market, which continues to power ahead and so skews all the data, the rest of the country is almost certainly down about the 4% level of house price inflation.

Ohh dear even lenders now admit that the game is over. I guess they can't use the 'C' word so 'sharp slow down' would do it for now :lol:

Share this post


Link to post
Share on other sites

At least this makes a change from the usual Haliwide propaganda who usually have a downbeat message fo the MPC and an upbeat message for the public.This release is honest and exposes the HPI boom myth,houses have been a s**t investment outside London and Northern Rock this last year and they are set to get a whole lot s**tier.

And Northern Rock, relying on the wholesale money market ,is best placed to also know that with the collapse of CDOs that particular source of money has now dried up besides the expiring of fixes causing problems for borrowers.It is all looking a bit of a nightmare.

Edited by crashmonitor

Share this post


Link to post
Share on other sites
I think we call it autumn over here... although i do agree there will be some "falling"

I have not been expecting any unwinding of the housing market until 2008.One wonders whether the market can last that long with the double whammy of a credit crunch and rising interest rates.

Edited by crashmonitor

Share this post


Link to post
Share on other sites
I have not been expecting any unwinding of the housing market until 2008.One wonders whether the market can last that long with the double whammy of a credit crunch and rising interest rates.

It will survive that long - on the surface at least - as denial amongst sellers will take some time to erode.

Share this post


Link to post
Share on other sites
I think we call it autumn over here... although i do agree there will be some "falling"

I know that. I used "fall" on purpose. :lol:

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.

Guest
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.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 356 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • 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.