Wednesday, October 13, 2010

Unbelievable opinion on the EAT site!!

First-time buyers hit by 90% collapse in high LTV mortgages

According to the 4th paragraph, there has never been a better time to get on the property ladder!

Posted by rantnrave @ 02:30 PM (2356 views)
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13 thoughts on “Unbelievable opinion on the EAT site!!

  • general congreve says:

    Housing down, gold up. Coming to a country near you soon.

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  • From the article:
    Angel Mas, at Genworth Financial, said the withdrawal of almost all high LTV mortgages had chiefly hit first-time buyers.
    He said: “Ironically, there has never been a better time to get on the property ladder as interest rates and property prices are at an all-time low.
    It’s not really my place to criticise someone who is probably some sort of “expert” but I think we can safely say that this guy is talking utter b0110cks.

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  • sibley's b'stard child says:

    That is an absolute gem of a find; bravo.

    Steve Wilcox said: “Without some innovation in policies or products, the ‘wealth barrier’ to accessing home ownership is set to become just as important as the income barrier has been in the past.”

    Yeah, funnily enough peoples’ wages didn’t seem to keep up with HPI so lenders had to think up increasingly ingenious methods of allowing FTBs to enter the market; now the banks have put the kabosh on that. C’mon guys, there must be a new paradigm in lending to help those poor priced-out serfs to ‘live the dream’.

    Et voila!

    “Meanwhile, this week the Co-operative Bank launched a 75% LTV shared ownership mortgage, allowing first-time buyers to borrow the remaining 25% from a housing association.”

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  • Staggering – ‘house prices at an all time low’. However his track record suggests he’s no f**ckwit. Rather, he would appear to be well in the pocket of the industry which no doubt provides the bulk of his funding:

    Steve Wilcox joined the Centre in 1996 from the University of Wales at Cardiff and was awarded a personal chair in Housing Policy at the University of York in 2000. He has a specialist knowledge in the area of housing finance and is editor of the highly respected and widely used annual UK Housing Review (formerly the Housing Finance Review). The Review is published by the The Chartered Institute of Housing and The Council of Mortgage Lenders.

    The annual Review is widely recognised as the most comprehensive source for key current financial and related data about both public and private housing throughout the United Kingdom. It draws on a wide range of Expenditure Plans and Departmental Reports, as well as statistical volumes, survey reports, and other more occasional research reports. The Review also includes a number of tables constructed from databases that are not routinely published elsewhere.

    The Review includes around 120 tables (as well as a number of further tables and figures in the accompanying short articles). A large proportion of this material is available for download on the Review website at ukhousingreview.org.uk. The latest data for the great majority of the tables in the Review only become available during the March to June period each year. There are, however, a small number of tables where data becomes available somewhat earlier in the year. Those updated tables are available in advance of the main publication, also on the Review website.

    Steve also produces each year The Ready Reckoner, for the Housing Corporation. This provides detailed measures of affordability for tenant, home owner and shared owner households, reflecting the tax and benefit system and rates in operation each year. The Ready Reckoner includes a CD Rom with an affordability calculator.

    He has been responsible for developing a number of innovative policy proposals, for example with respect to the finance and management of local authority housing and support for low income home owners.

    Professor Wilcox is based in Somerset. He can be contacted via email or through the main office of CHP.

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  • mark wadsworth says:

    Property prices at an all time low?

    Gentleman, Site Admin, our work is done! Let us sally forth to bury all the grandmothers we slayed by mistake (I blame that killling spree on Smugdog).

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  • sibley's b'stard child says:

    Quite MW, I imagine some canny merchant has already bought the domain name for House Price Inflation. Probably just performing the finishing touches to the homepage as we speak…

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  • “Without some innovation in policies or products……..” Wasn’t it innovation in products that drove prices beyond people’s means in the first place? As for innovation in policies, how about the state’s ceasing support for house prices in all the ways identified on this site?

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  • You have to wonder whether the guy might have been misquoted. Nobody, not even the most ill-informed punter on the street, would say that property prices are currently at an all-time low.

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  • Just reread it, the quote is from the financial adviser, very badly subbed to make it look like him. If I were Wilcox I’d be hopping mad.

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  • the number cruncher says:

    I had a meeting with my company bank manger today (Nat West) and she told me (while I was re-soldering some thermistors on a 50 inch plasma display screen) that her bank had introduced much tighter lending criteria this month for property assets backing up commercial loans, as well as domestic mortgages. 🙂

    She also had a winge that she was desperate to lend money to people like myself and was getting a lot of pressure from her bosses to do so, but like me, nobody of good liquidity and a healthy income stream was borrowing. Yet there was lots of businesses, with falling income, desperate to borrow but they where not interested. It seems to be your income stream and its trends that are the crucial metric of what they are looking for in lending criteria.

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  • letsgetreadytotumble says:

    Spoke to an EA today (what a mistaka to maka).
    He claimed the bigger, more expensive stuff was totally static, not shifting at all.
    But all the smallest, cheapest end of the market were shifting to BTL investors who were snapping up bargains (yawn).
    In a way I hope he’s correct. I’d find it amusing that BTLers were spending on overpriced rubbish, only to find they’ve lost a fortune when prices bottom out.
    Be less competition around also when I want to dive back in.

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  • 8. pelethar said…You have to wonder whether the guy might have been misquoted. Nobody, not even the most ill-informed punter on the street, would say that property prices are currently at an all-time low.

    I’ll have a few of those, and sell them on in 24 hours thank you.

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  • As montesquieu points out EA today have lifted this from http://www.ftadviser.com/FTAdviser/Mortgages/News/article/20101011/0782b78c-d526-11df-b338-00144f2af8e8/Lost-generation-of-FTBs-as-LTV-mortgages-are-cut.jsp

    I had this article e-mailed to me by FTadviser on Monday and was tempted to post it up under the comedy club banner but thought better of it as the content was so cr*p – eg “Ironically, there has never been a better time to get on the property ladder as interest rates and property prices are at an all time low”

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