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Leonard Hatred

Why Banks Are Kicking The Bottom Rung Out Of The Property Ladder

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The slow tightening of credit since the US sub-prime crisis began to bite last summer and the fallout from the Northern Rock affair in Britain has begun to transform the sector. Lenders have seized the chance to fatten margins that have been driven down for so long by upstart competitors. The wider impact could be a new kind of housing slump - one caused by a restriction of supply rather than demand.

http://www.guardian.co.uk/money/2008/feb/26/banking

Edited by Sir Talbot Avenger

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No one is going to be able to buy at the bottom with 10% deposits needed the good old days of 120 LTV Mortages and 5+x times salary will soon be a distance memory I reckon it will fold like a house of cards when the bottom level is removed

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the banks aren't, the 'meeja' is <_< I'll say it again, the 100%+ mortgage was a small fraction (perhaps 5%) of a market. The FTB market that is/was only 15% of the overall mortgage market. 5% of 15% is sweet fukc all. FTB buying 150K place with 95% mortgage and personal loan up to 30%/30K max, or 100K place (after correction) with 95% mortgage? :blink: We can do the math, the 'meeja' don't want to <_<

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what people forget that BTLers that invested in the last 5 year will get hit so hard they would nt know what happen. who is going to pay the level of rent when it will be cheaper to buy and or rent from the new wave of BTL.

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  • 297 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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