Thursday, October 2, 2008

Oh no. No more lending

Banks 'to reduce lending further'

Another article to prmote a rate cut, depsite rampant inflation within the market place. God help us should Merv cave in. Rates can go up as well as down just like your mortgage reset rate.

Posted by symo @ 12:45 PM (642 views)
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7 thoughts on “Oh no. No more lending

  • planning4acrash says:

    Remember that liquidity injections and reduced reserve ratio’s have similar affect to cutting base rates. The focus is on those now, rates will come. This really is a race to destruction.

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  • “liquidity injections and reduced reserve ratio’s have similar effect to cutting base rates. The focus is on those now, rates will come.”

    Sorry P4C, I am bit confused (no jokes please.) I thought the reducing lending is intended to build up bank balance sheets i.e. increase reserve ratios. The race for the banks is to get to safety.

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  • Guy’s let’s keep this simple – the Banks & Building Soc’s are now turning down applications from potential borrowers who (a) have a perfect credit record (b) meet the lenders income/affordability criteria (c) fit within normal LTV’s

    I have spoken to several brokers this morning who have confirmed this to me and furthermore the LTSB/HBOS proposed merger/takeover plan is also having an impact with LTSB (in my opinion) imposing a more stringent lending criteria across what will be an organisation taking a market share of approx 33%

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  • japanese uncle says:

    Lloyds TSB’s move to take over HBoS was one of the stupidest. Just think, how much of the huge mortgage portfolio of HBoS should turn sour for the next couple of years. 33% market share on top of the pile of merde! I should like to see this deal toppled at the 11th hour, and that will prove good to all parties concerned.

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  • planning4acrash says:

    Quiet guy. I understand that part of the bail out was to reduce capital reserve ratio’s towards zero to eliminate the limits LIBOR and the equivalent have on inflation.

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  • Seems to me that the lenders who were thinking up ever more innovative ways of throwing money at people are now thinking up even more innovative ways of withholding the money.

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  • @renting2 (Thursday, October 2, 2008 03:08PM) – absolute bulls eye !

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