Wednesday, October 7, 2009
There isn’t the money for lending I wonder what that might mean?
Nothing new here I know but one is left asking "what next?" If you read this in Estate Agent Today , as an Estate Agent, would that signal that property prices are actually going up or that there might be a reason that your sold ratio to unsold stock has risen for the 8th successive month!!? As Moneyweek recently said: "....A lot of lending power has now left the market for good. Almost Â£300bn of UK mortgage debt was securitised, i.e. packaged up and sold off from bank balance sheets onto the bond markets, between 2005 and 2007. That represents more than 90% of the growth in mortgage debt over that period. ....the world isn't exactly clamouring for British securitised mortgages anymore, and won't be for a long time" That is not a recipe for house price increase!