Tuesday, Oct 20, 2009

Cherry-picking

Telegraph: Half of all home buyers have mortgage requests rejected

The exclusive research for The Daily Telegraph revealed how banks are restricting mortgage deals and holding onto Government cash to improve their balance sheets instead. The survey by credit checking agency Equifax revealed that 46 per cent of home buyers had their first mortgage application refused, compared to 23 per cent last year. The survey also revealed further evidence that lenders are cherry-picking the best borrowers with 18 per cent of home buyers unable to get on the property ladder because they do not have a large enough deposit. It compares with 10 per cent a year ago.

Posted by wanderinman @ 12:01 AM (790 views)
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2 Comments

1. mark wadsworth said...

Weird!

In the parallel Home-Owner-Ist Universe, sensible lending policies are seen as A Bad Thing.

It reminds me a bit of Jack NIcholson's rant in "A few good men" where he rails against cosy fat Americans sleeping soundly in their beds who turn up their noses at him and his soldiers who are "defending freedom" (using all sorts of dirty tricks). The Home-Owner-Ists claim that they are the prudent and the responsible (which is questionable) but what they want more than anything is for the next generation of FTBs to be imprudent and irresponsible and pay vastly over the odds - by analogy, the banks are like Jack NIcholson's troops - they do the dirty work (reckless lending to gullible FTBs) on behalf of the Home-Owner-Ists but still get looked down on by the Home-Owner-ists.

In fact, the Home-Owner-Ists look down on FTBs as well ("In my day, we saved up a much bigger deposit and lived within our means") but their real scorn is reserved for tenants who refuse to play the game. And at the same time, a lot of them rail against BTLers while being heavily involved in BTL themselves.

Tuesday, October 20, 2009 10:19AM Report Comment
 

2. ontheotherhand said...

This is very interesting and it merits good discussion on this board. Do you think this cherry picking affects the average price? Perhaps only those with big deposits are getting mortgages and perhaps those types tend to buy more expensive houses on average? I know Haliwide are mix adjusted but perhaps this new phenomenon stretches the mix methodology too far? There must be some effect on prices if certain types of properties don't sell and are removed from the stats.

Tuesday, October 20, 2009 10:57AM Report Comment
 

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