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bobthe~

The New Denial Industry

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Listened to Adrian Coles of the Building Societies Association on R5 this morning.

Apparently 2 small BS's have pulled all their mortgage business cos they can't cope with the volumes.

Very bearish, saying that lenders suddenly find themselves at the top of the best buy tables, not where they want to be and presumably then get calls from 2000 desperate Mortgage brokers looking for 100% SP re-mortgages.

So far so good. Then I think it was our STR buddy Andy Verity (or maybe not ST, but he is renting), asked the obvious follow on question.

So if mortgages aren't available and people can't make offers on houses, surely this will result in prices falling?

And he replied....wait for it.

Well we see this year as being flat with zero growth overall. Not exactly, but you get the picture.

This thread is for the questions that Verity should be asking the industry shills after they get that answer.

Mine is a serious one.

"What would it take for you to forecast an overall drop in house prices?"

The one I would like to see is

why are you such a lying ****?

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I'm not presently disposed to discuss these operations, sir.

Sir, I am unaware of any such activity or operation - nor would I be disposed to discuss such an operation if it did in fact exist, sir.

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Apparently 2 small BS's have pulled all their mortgage business cos they can't cope with the volumes.

Could someone explain that to me? Is that a real reason or code for "we're a bit too lax at the moment; give us a while to tighten up, please"? Why can't they just put a very severe filter on things and cream off the best applications rather than stop lending all together?

Peter.

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Could someone explain that to me? Is that a real reason or code for "we're a bit too lax at the moment; give us a while to tighten up, please"? Why can't they just put a very severe filter on things and cream off the best applications rather than stop lending all together?

Peter.

Well apparently not. The undeniably honest Adrian Coles was telling us that it was the inability of customer services to cope with the volumes and they thought it was unfair on their existing customers.

Some lenders have their own department for new business and other departments for existing customers.

Maybe they really are too small to do that.

He was also insistent that BS's didn't burn themselves in the US sub prime market - I think he said US, obviously with the Prtman owned by NW and Platform owned by Britannia, it would be less than honest to say that they weren't in the self cert lie to buy lend to a corpse UK sub prime market. :)

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Building Socs have a different funding model to banks.

It wasnt until a few were privatised for the benefit of shareholders (cough) that the housing bubble started. This was caused because these new banking lenders had access to money markets and other financial vehicles invented over time.

Building socs simply dont have this clout, and therefore they can only lend less than a bank, plus they are not likely to have a ton of off balance sheet crap.

They MAY have bought a few CDOs as investments though.

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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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