Wednesday, February 2, 2011

Blah, blah, blah

Mortgage lenders ease loan restrictions

"The proportion of mortgage deals needing more than a 25% deposit has fallen to a two-year low. Moneyfacts says only 46% of mortgages currently on offer now ask for a deposit of that size."

Posted by phdinbubbles @ 08:24 AM (1189 views)
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13 thoughts on “Blah, blah, blah

  • “For many, a necessary move to enable them to start a family or re-locate with work is held back by an erosion of equity and a widening gap between the cost of a first-time buyer and second step property,” it added.

    There was me thinking that falls in prices might make it cheaper for me to trade up from my current house. However, it’s only lower-priced houses that fall in price according to Lloyds. Who are the owners of the second-step houses selling them to in order to maintain their price then?

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  • sibley's b'stard child says:

    “For many, a necessary move to enable them to start a family or re-locate with work is held back by an erosion of equity and a widening gap between the cost of a first-time buyer and second step property,” it added.

    Caveat Emptor.

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  • I believe the problem lies in the building of and supply of second step housing.

    Many first step (flats) were built over the last 10 years. I believe this all went wrong with housing targets targeting ‘homes’ which could be anything from a 1 bed flat to a 5 bed family home.

    Many people will stay in there 2nd step home forever and with the ageing population we are going to have to wait for another 5 years for significant volumes of these to come onto the market.

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  • I believe the problem lies in prices being too high on all rungs

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  • People in this country will buy with what the banks will lend them.

    If the banks allowed people with no income unlimited amounts of money to buy 10 houses each then they would, this would then push up prices and limit supply.

    I think a few more years of mortgage drought should sort this problem out, however I am not convinced that there are enough semi/detached properties out there. Perhaps there are but they are badly allocated, say one pensioner living in 3 bed bungalow (as my grandmother was before she passed away last year).

    I believe it need the combination of lower lending and the supply side increasing which is still going to take some time.

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  • khards what area are you looking in?

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  • Street primarily and Glastonbury in Somerset.

    Street must be the most overpriced town in the UK?

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  • mark wadsworth says:

    As to grannies in 3-bed semi’s, LVT will sort that out in double quick time. if we went for full-on LVT then we wouldn’t actually need to build another house for about twenty years while everybody ‘right sizes’.

    What’s this nonsense with “first rung, second rung”? Back in the day you left school or uni, dossed about a bit in a rented flat, enjoyed yourself for a few years until you buckle down, get married and buy a 3-bed semi and that was the end of that.

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  • oh ok, there are plenty of semis up NW and Cheshire, so maybe a supply issue more on local levels??

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  • 8 MW, Whilst I fully agree with you

    It will not happen because it is not right politically.”Won’t you think of the pensioners”

    I think high inflation seems to be the way forward, quietly robbing them until they can’t afford the heating, food, cars e.t.c. They will then have to sell there houses?

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  • khards

    what recent government thought of the pensioners? in fact what recent government has even given the people a thought

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  • mark wadsworth says:

    Khards, I’m a really tired of the Poor Widow Bogey.

    As far as I am concerned, we can exempt pensioners completely and everybody else just pays a slightly higher rate. This loses a key advantage of encouraging pensioners to ‘right size’, but all things being equal, would push house prices down even further.

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  • According to home.co.uk (if they speaketh the truth) the price of detached houses in my city has fallen further in percentage terms than terraced houses (and flats), which obviously means the trade-up price has reduced as a result of the crash, despite what Lloyds say.

    @MW
    “What’s this nonsense with “first rung, second rung”? Back in the day you left school or uni, dossed about a bit in a rented flat, enjoyed yourself for a few years until you buckle down, get married and buy a 3-bed semi and that was the end of that.”

    The concept of the property ladder is absurd, however for me personally I’m not complaining that my wife bought our small house when she was single (whilst I was dossing around) and when prices made sense, especially as we’ve cleared the mortgage between us. Just trying to judge an opportune moment to buy a nicer house now.

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