Sunday, August 12, 2007

no more money left, tough s**t

Who can't get a mortgage now

this is likely to happen in UK, then what? crash crash crash.... Read the last bit about the lawyer on 200k.... thats the city screwed..

Posted by mark @ 08:39 PM (471 views)
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5 thoughts on “no more money left, tough s**t

  • voiceofreason says:

    This is absolutely fantastic news.

    Ability to purchase houses is going back to basic, sound reasoning.
    Namely the ability to pay back the loan.

    Not ability to ignore the future consequences of taking out a recklessly large loan, or to gamble on capital growth to bail you out.

    How long until this kind of “normal service” is resumed this side of the pond I wonder?

    I guess the answer to that is that it depends on how similar to the US market, the UK is in terms of proportion of lenders that are in a position similar to Fannie Mae”. i.e. are still liquid enough to make loans to rock solid clients.

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  • This type of old-fashioned behaviour by mortgage lenders spells disaster for ‘flexible’ labour markets (i.e. no secure employment). I thought we were supposed to be in a new paradigm?

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  • Good point cyril if the banks will only lend you 3.5 times your salary with 5 years of pay slips to back it up as in the good old days then that should exclude half the population from having a mortgage.

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  • On the lawyer I’d be a bit suspicious of someone supposedly earning $200k a year who didn’t have any money for a downpayment . . . if they couldn’t save even $40k for a 5% deposit then they’re obviously not the most cautious and financially responsible no matter how much they earn.

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  • Agreed Benedict and a very good point. Does anyone know what its like in a City firm? A friend trained in one as a Solicitor (top 10) and he said they are constantly worried about being fired and the boss is constantly friing them. So are they good for that $800000 apartment? I think not.

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