Monday, March 9, 2009
Stating the obvious
Another article stating the obvious then failing to state the obvious. Obviously mortgage markets depend on funding, but what is causing property prices to fall is a decade of irresponsible overlending which nobody can now afford. What is happening now with falling property prices and responsible lending (3.25 loan to income ratios / 60 % LTV to take into accout the needed property price falls) IS THE RECOVERY that people appear to believe will mean going back to 2007 lending levels. The recovery of the housing market is dependent on sensible regulated lending, 3.25 loan to income and 40 - 50 % property price falls, we could not afford the madness of the past decade, slowly the market is recovering this is it, a return to what we can afford. The press now confirm January was a blip!