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Almost 3/4ths Of A Million Sheeple Refused Mortgages


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Third of mortgage applications denied

Puts some numbers to the 60% increase...........

In the latest sign that the credit crunch is hitting ordinary consumers and not only City bankers, an estimated 372,000 of the 1.2 million people applying for a mortgage or re-mortgage in the past six months have been rejected.

This is a sharp increase on the estimated 230,000 people – or one in five applicants – that had their requests for a loan turned down in the six months to March

Bank of England statistics show that the number of mortgage approvals has fallen sharply, with 11,000 fewer people being approved for a home loan in August 2007 compared with August 2007.
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Being refused a mortgage can be embarassing I imagine. I do believe that lenders are shooting themselves in the foot. As more people are refused due to stricter lending practices, so less people will be able to join the property ladder/snake.

Are lenders throwing the baby out with the bathwater or is it they have so many people applying for mortgages that they can afford to be picky.

I dont know, but I find this interesting.

Its how banks behave, a few months ago they couldnt get rid of enough loans and mortgages, bonuses depended on it, now maybe if they lend to the wrong person their jobs will be on the line (which is as it should have been all along). Yes it will shoot them in the foot, prices will drop to meet the avaliable loan ceiling and banks repossesing will loose out even more than they would have done. They are basicaly gamblers, they fk up big time, feel sorry for themselves, repent for a while and before you know it they are back to their old tricks again, susepct this will take around 5 years, then they will be wondering where all the customers are when they are giving away free money again.

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One really surprising aspect of the credit crunch is lenders have been pulling mortgage offers after they have been issued. In some cases people are exchanging contracts having obtained a mortgage offer and before the completion date the lender has pulled the offer so the buyer is contractually bound to purchase a property but no longer has the money to complete. You can imagine the chaos this causes.

A bad time to move house especially if you are in a long chain

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One really surprising aspect of the credit crunch is lenders have been pulling mortgage offers after they have been issued. In some cases people are exchanging contracts having obtained a mortgage offer and before the completion date the lender has pulled the offer so the buyer is contractually bound to purchase a property but no longer has the money to complete. You can imagine the chaos this causes.

A bad time to move house especially if you are in a long chain

I asked about this on another thread a few weeks ago, and the answer came back that the lenders couldn't do this (or not without a hefty fine). You're a property lawyer, aren't you? so, what's the score on this? At what point, if any, do the lenders become committed to lending?

Peter.

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This credit crunch isn't working out as it was supposed to.

I think it's working just fine. We have now the 'Liquidity Enhancer' (= greatest pool of floating flaming turds ever), credit contracts seemingly, oil is at $86, gold at $760.

Textbook crunch. And it has only just begun. Embrace! Once the UK will go into foreclosure, disaster will strike much harder (globally, but especially here).

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  • 439 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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