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Jonnybegood

Mortgage Broker Friend

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Chatting over a few beers lasts night with a friend who has been advising / selling mortgages for the last 18 years, he was telling me how bad the last 6-9 months have been, nothing moving with regards to property and the massive reduction in the number of mortgages available.

A mortgage would be available one evening and then checking the following morning to find it had been withdrawn, it was the worst he had witnessed since having started selling mortgages.

He has become more positive over the last couple of months, mortgages are loosening up, more products entering the market and ftbs having mortgages accepted when combined with a discount off asking prices, sometimes he says its that extra £10k off asking prices that secure the mortgage with many now asking for 85% LTV.

He is don't running ahead of himself but can see signs off an improving mortgage market, 6 months ago was the low point he says.

He covers the Hampshire area, Fareham, Southampton , Winchester etc

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Chatting over a few beers lasts night with a friend who has been advising / selling mortgages for the last 18 years, he was telling me how bad the last 6-9 months have been, nothing moving with regards to property and the massive reduction in the number of mortgages available.

A mortgage would be available one evening and then checking the following morning to find it had been withdrawn, it was the worst he had witnessed since having started selling mortgages.

He has become more positive over the last couple of months, mortgages are loosening up, more products entering the market and ftbs having mortgages accepted when combined with a discount off asking prices, sometimes he says its that extra £10k off asking prices that secure the mortgage with many now asking for 85% LTV.

He is don't running ahead of himself but can see signs off an improving mortgage market, 6 months ago was the low point he says.

He covers the Hampshire area, Fareham, Southampton , Winchester etc

6 months ago the low point?

:lol::lol::lol:

Did he keep a straight face?

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Elsewhere on the web some bull/be-careful-what-you-wish-for-types line now is 'don't be so smug about an HPC because you won't be able to buy anyway 'cause you won't be able to get a mortgage'. But surely part of the reason why mortgages are difficult to get is because lenders think big price drops are forthcoming and so are reluctant to lend. Once those drops have happened, as they surely must, that will ease lending conditions. This suggests that it's happening in a small way as a result of the modest price falls recently.

Edited by Variously

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Chatting over a few beers lasts night with a friend who has been advising / selling mortgages for the last 18 years, he was telling me how bad the last 6-9 months have been, nothing moving with regards to property and the massive reduction in the number of mortgages available.

A mortgage would be available one evening and then checking the following morning to find it had been withdrawn, it was the worst he had witnessed since having started selling mortgages.

He has become more positive over the last couple of months, mortgages are loosening up, more products entering the market and ftbs having mortgages accepted when combined with a discount off asking prices, sometimes he says its that extra £10k off asking prices that secure the mortgage with many now asking for 85% LTV.

He is don't running ahead of himself but can see signs off an improving mortgage market, 6 months ago was the low point he says.

He covers the Hampshire area, Fareham, Southampton , Winchester etc

With all due respect I think your friend is living in fantasy land. 6 months ago was before the credit crunch, before the true picture emerged. Most people were not in denial then, they simply had no clue as to what was to come. It's going to get a lot worse before it gets any better.

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Were not mortgage approvals last month down 71% on the same month last year? All the 'financial advisors' I know are so full of hot air if we could harness their power we could be supplying energy to Saudi Arabia.

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With all due respect I think your friend is living in fantasy land. 6 months ago was before the credit crunch, before the true picture emerged. Most people were not in denial then, they simply had no clue as to what was to come. It's going to get a lot worse before it gets any better.

wrong in a number of ways the crunch started in late summer 07 if I remember it was on/over the august bank holiday the problems were hitting the papers on the Tuesday this was shortly followed by NR bailout in sept 07 after the money markets had dried, the effects were VERY strong in Feb 08 and we have had three crunch waves since august 07.....

exactly 6 months ago bush injected $168 billion into the markets and you say this was before the crunch!

Edited by moosetea

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Maybe the broker is dealing with more suitable applicants as the hopeful dodgy ones have stopped applying. Also, with FTBs, I think part of the dip has been caused by people rushing to buy last year - so part of this years 'quota' of FTBs actually bought last yea to 'get a foot on the ladder before it was too late'.

Edited by blankster

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Actually, I've heard this from mortgage broker friends. Things are slowly picking up, with prices continuing to fall.

Maybe this is a dead cat bounce?

P.s. The contacts I have expect a good 25% off from peak!

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wrong in a number of ways the crunch started in late summer 07 if I remember it was on/over the august bank holiday the problems were hitting the papers on the Tuesday this was shortly followed by NR bailout in sept 07 after the money markets had dried, the effects were VERY strong in Feb 08 and we have had three crunch waves since august 07.....

exactly 6 months ago bush injected $168 billion into the markets and you say this was before the crunch!

You're right of course. But it only really became the big story it is to the 'general public' at the start of this year.

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Actually, I've heard this from mortgage broker friends. Things are slowly picking up, with prices continuing to fall.

Maybe this is a dead cat bounce?

P.s. The contacts I have expect a good 25% off from peak!

Personally I would think it is in fact the start of sellers accepting their fate and taking offers now rather than a bigger one down the line, there was always going to be a stand off.

Rather that dismiss the idea we should welcome such news, prices only go down when places sell, people may be getting mortgages but they are smaller in comparison to a year ago.

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more business than very little is an improvment, but very little is not enough to halt the decline. There are still more sellers than buyers.

This is what happens in a downturn. Numerous periods of hope that'll things will turn. The bottom is when all hope has been extinguished. It's the reverse of the saying that bull markets climb a wall of worry, and at the top of a bull market is the euphoria from which the only way is down.

We can only go up from total despair. We may simply has moved from denial to anger.

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Things are slowly picking up, with prices continuing to fall.

Think about it logically. The latter is, in the current mortgage \ property market, a necessary condition for the former, as long as we take the former to mean "business for a mortgage broker".

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  • 399 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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