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Nationwide Blow To First-time Buyers

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This was on the news blog, haha already this far down i didnt expect it this soon but hey all the better. negative equity anyone one cup or two.

http://business.timesonline.co.uk/tol/busi...icle3430815.ece

Nationwide Building Society will no longer offer competitive mortgage deals to borrowers who do not have a deposit of at least 25 per cent.

Edited by crash2006

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This was on the news blog, haha already this far down i didnt expect it this soon but hey all the better. negative equity anyone one cup or two.

http://business.timesonline.co.uk/tol/busi...icle3430815.ece

Nationwide Building Society will no longer offer competitive mortgage deals to borrowers who do not have a deposit of at least 25 per cent.

This is surely *massive*.

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This is surely *massive*.

Yes. I just wish the journalists would report it with a different angle. This kind of change will do more to encourage responsible behaviour amongst would-be borrowers than anything else. It's certainly not a blow to first time buyers.

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Oh no, the Nationwide must be in trouble. They must be another Northern Crock! Quick, get your savings out in the morning! Run! Be afraid, be very afraid!

<phew>

I think it is a wise move by nationwide, why give 90-95% loans on property that will be in negative equity in a short while, remember the first thing a lender does when valueing a property is look at the resale value in case of default by the borrower.It tells me one thing and that they are putting a 25% buffer in their calculation to allow for a fall in prices, this means the borrowers 25% deposit is eaten away first in the case of a fall before the lenders loan is touched.?

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I think it is a wise move by nationwide, why give 90-95% loans on property that will be in negative equity in a short while, remember the first thing a lender does when valueing a property is look at the resale value in case of default by the borrower.It tells me one thing and that they are putting a 25% buffer in their calculation to allow for a fall in prices, this means the borrowers 25% deposit is eaten away first in the case of a fall before the lenders loan is touched.?

Exactly, and the sooner the general population of sheeple get their head round this the better for everybody.

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Yes. I just wish the journalists would report it with a different angle. This kind of change will do more to encourage responsible behaviour amongst would-be borrowers than anything else. It's certainly not a blow to first time buyers.

Yes, but honestly what do you think 95% of their readers would say if they had something like "Boost for FTB's as LTV's plummet". Actually, it is terrible news for FTB's who now will be unable to remortgage cheaply. It is excellent news for potential-FTB's in that they might be spared from financial oblivion for the next 10 years by being unable to buy into the madness...

In order to influence people (most newspapers have some kind of political bias), you have to make it so that they can relate to you. The readers have to feel like they're 'singing from the same hymn sheet' and nearly all the potential FTB's will be reading this article thinking 'oh crap, now I'll never be able to buy...'. Newspapers are not about showing their readers th bigger picture, unfortunately!

It goes back to the fact that people really are stupid.

Either way, this is amazing news and other lenders are sure to follow suit. I am convinved that this is the start of the big one we've been waiting for...

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Yes, but honestly what do you think 95% of their readers would say if they had something like "Boost for FTB's as LTV's plummet". Actually, it is terrible news for FTB's who now will be unable to remortgage cheaply. It is excellent news for potential-FTB's in that they might be spared from financial oblivion for the next 10 years by being unable to buy into the madness...

In order to influence people (most newspapers have some kind of political bias), you have to make it so that they can relate to you. The readers have to feel like they're 'singing from the same hymn sheet' and nearly all the potential FTB's will be reading this article thinking 'oh crap, now I'll never be able to buy...'. Newspapers are not about showing their readers th bigger picture, unfortunately!

It goes back to the fact that people really are stupid.

Either way, this is amazing news and other lenders are sure to follow suit. I am convinved that this is the start of the big one we've been waiting for...

In the long run this will be a good thing for FTBs, It will give them time to save for a deposit, and secondly which i suspect is the reason for Nationwides action is that the price of the property will be lower in the near future.

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Yes. I just wish the journalists would report it with a different angle. This kind of change will do more to encourage responsible behaviour amongst would-be borrowers than anything else. It's certainly not a blow to first time buyers.

Sure but this will rip the guts out of those already on high LTV's and a reset in the offing (Some 2million).

Howmany over streached borrowers are coming up to SVR re-sets in the next 12 months, Howmany assumed 5% was the normal rate even if only fixed for 2 years? You can always get another one.....Doh!

How many are gunna be unable to re-finance and get pushed on to a much higher lending charge. Assume the avg has 100K mortgage and currently pays 5%.

They are looking at an SVR of 7%+ so thats at least 2k p/a out of the household budget and thats only those that didn't take a silly mortgage.

Thats 2K p/a off clearing your now non existant 0% intrest free balance transfered credit card. OUCH

Glad I don't work in retail, although Aldi/Lidil could be looking at a huge rise in thier customer base. But the maths is starting to look scary if they are rising LTV's like this.

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Do you not think we are getting a little excited here????

What they are saying, is the best deals will be for those who have 25% or more deposit. If you only have 10%, they will STILL lend to you, but at 0.2% higher!

Not exactly shutting off the tap is it??

TB

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Yes, but honestly what do you think 95% of their readers would say if they had something like "Boost for FTB's as LTV's plummet". Actually, it is terrible news for FTB's who now will be unable to remortgage cheaply. It is excellent news for potential-FTB's in that they might be spared from financial oblivion for the next 10 years by being unable to buy into the madness...

In order to influence people (most newspapers have some kind of political bias), you have to make it so that they can relate to you. The readers have to feel like they're 'singing from the same hymn sheet' and nearly all the potential FTB's will be reading this article thinking 'oh crap, now I'll never be able to buy...'. Newspapers are not about showing their readers th bigger picture, unfortunately!

It goes back to the fact that people really are stupid.

Either way, this is amazing news and other lenders are sure to follow suit. I am convinved that this is the start of the big one we've been waiting for...

I agree, first time buyers are being saved here, but many of them won`t see it that way. The headline should be "Nationwide blow to sellers" but no newspaper would run with that, just underlining that newspapers definately are not about the bigger picture. The sooner we all stop buying them the better (newspapers that is)

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Do you not think we are getting a little excited here????

What they are saying, is the best deals will be for those who have 25% or more deposit. If you only have 10%, they will STILL lend to you, but at 0.2% higher!

Not exactly shutting off the tap is it??

TB

No just turning the tap off a little more.

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nearly all the potential FTB's will be reading this article thinking 'oh crap, now I'll never be able to buy...'

I doubt it. They'll just be shrugging and preparing to take the interest premium hit on a smaller deposit or assuming they'll get a better deal elsewhere. Even if every provider did the same, the idea of a 25% deposit will be so outlandish to most people that they would treat the rates for those deposits the same way they treat the sorts of discount you can get for bulk purchasing - i.e. as something not meant for them.

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Guest Charlie The Tramp
Do you not think we are getting a little excited here????

What they are saying, is the best deals will be for those who have 25% or more deposit. If you only have 10%, they will STILL lend to you, but at 0.2% higher!

Not exactly shutting off the tap is it??

TB

I`m glad someone pointed that out, if it was for all mortgages they would soon be out of business. :rolleyes:

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this is funnay as fick

After an exodus of six big lenders, including Northern Rock and Alliance & Leicester, from the 100 per cent-plus market, only one, Dunfermline Building Society, still offers the deals

thats cos In dunfermline they havent heard what the rest are doing yet cos they still think broad band is a fat piece of elastic round a pigeons legg :)

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Great news. Now let people get out of the madness of living on credit cards, and start SAVING for things they want, a deposit being as good a start as any for anyone.

Saving for the things they want - don't be so ridiculous.

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I think you will find the above 75% LTV mortgages will be to a selected minority.

The selected minority being - those that are actually stupid enough to want to buy a house today?

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RBS one account did something similar to this recently.

I noticed thier rates go from 3 tiers LTV 50%/75%/??% (I forget the last)

to five tiers ... the original 3 stayed the same, so it didn't pop up on the radar but the intermidate tiers add to the cost and thier tracker was pushed up .1% for all new borrowers.

All small increments but in a rapid sequence. Rates++ and others will follow.

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Most of the sheeple that would keep this pantomime going have f*ck all deposit, they are used to getting FREE MONEY. There is not going to be anymore FREE MONEY, the banks are stopping lending to f*ckwits. They won`t say this in their glossy ads because that is bad for business. they will however be checking you out pretty closely before they lend anything, and the "tiered" rates are just a polite hint that you may need to f*ck off if you are in any way sub-prime.

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  • 298 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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