Sunday, June 22, 2014

Keep out young first time buyers or the whole ship will sink

Carney told to rein in lending

"The Bank of England must act quickly and decisively to rein in UK mortgage lending if it is to prevent another housing crash, two of Europe's top policymakers have warned." Yes, that's right whatever we do don't let anyone buy a house to live in. Meantime we must increase bank lending to small business, like, for example, buy to let landlords.

Posted by chrisch @ 10:28 AM (4948 views)
Please complete the required fields.



19 thoughts on “Keep out young first time buyers or the whole ship will sink

  • a lot of the buying in London is either cash buyers or people with sizeable amounts of equity that can move quickly. So making the mortgage market tighter is unlikely to do a lot. It seems a big paradox that on the one side you still have the Help to buy scheme and on the other side they are talking about stricter mortage lending measures.

    I rstill remember when joint miras ended and almost overnight people looked at property and said it is overvalued. I think it was what the majority think that will effect themarket, rather than tinkering around the edges.

    Reply
    Please complete the required fields.



  • Over 25% of all lending in money terms is in london add south east and it approaches
    50%….so this idea that it’s all cash is rubbish….and the other myth than overseas cash
    Buyers we keep buying at inflated prices if market slumps is more rubbish

    You won’t see a cash buyer for love nor money!

    Reply
    Please complete the required fields.



  • its not rubbish. I work in this business and when there are many people who want one property and it goes to sealed bids, then it is the people in a better financial situation that buy. I am not talking about all cash, just people that will not have a problem with a mortgage because they are putting down a lot of money on the purchase.

    Reply
    Please complete the required fields.



  • guys, can somebody tell me pls why people talk about “rates going up” as if it was a natural phenomenon, where it is in fact Carney’s and his boys choice. they can keep 0.5% overnight repo no matter what.

    Reply
    Please complete the required fields.



  • We just got beaten on a house offer by a buy to let landlord who failed to get their survey in before us and did not offer as much. Our higher offer was not passed on and the Agent lied to the vendor about survey dates, even cancelling ours without telling us.

    Why? Because with BTL they get commission on the sale and then commission on the lettings side.

    If you want a house in hot spots in London, lie, and tell you want to be BTL, that you will use them as letting agent but do not use their mortgage broker because they will be aware of your scam to battle their scam of scams.

    It should be illegal to have lettings and sales under one roof, and Agents should be banned from having interests in BTL within certain distance from where they operate in sales, and should be forced to fill in a register of BTL interest that is made public to vendors and buyers who use them. Just like when financial advisors and writers must declare interests.

    Reply
    Please complete the required fields.



  • Sorry Taffee, I beg to disagree….

    Anecdotally:
    My brother manages a big electrical company which also handles utilities for new build flats in London. He says it’s dominated over the last 18 months by cash buyers from overseas. Alll being bought “as an investment”.

    Lots of Chinese people buying in Shenfield, Essex, as it’s the end of the Crossrail link. Paid also in cash says my friend who works for an EA there.

    Reply
    Please complete the required fields.



  • 1, These ‘Cash’ buyers, especially Chinese are buying with ‘Cash’ borrowed from the Shadow banking sector – It’s possible for that to dry up overnight. But that’s out of the UK bankers control.

    2, People with mortgage approval bid up the price, even if the buyers turn out to be non-procedable. If nobody had or could get approval prices would drop sharply as nobody will be bidding them up.

    Reply
    Please complete the required fields.



  • We just got beaten on a house offer by a buy to let landlord who failed to get their survey in before us and did not offer as much. Our higher offer was not passed on and the Agent lied to the vendor about survey dates, even cancelling ours without telling us.
    Why? Because with BTL they get commission on the sale and then commission on the lettings side..

    I actually made that mistake once. It’s always best to bulls–t the estate agent and tell them you are interested in their dodgy mortgage deals and having them manage the property afterwards….then once bought, you can freeze them out.

    Reply
    Please complete the required fields.



  • 1, These ‘Cash’ buyers, especially Chinese are buying with ‘Cash’ borrowed from the Shadow banking sector – It’s possible for that to dry up overnight. But that’s out of the UK bankers control.

    Mostly off-plan though. They don’t touch anything that needs any form of work….like redecoration.

    2, People with mortgage approval bid up the price, even if the buyers turn out to be non-procedable. If nobody had or could get approval prices would drop sharply as nobody will be bidding them up.

    More fool them. I’ve heard of numerous cases where after a bidding war, the winners withdraw….because they realize that the property isn’t worth what they offered. Although, in a fever situation, like now, madness takes over.

    Reply
    Please complete the required fields.



  • @6

    I didn’t say there were no cash buyers just the fact that over 25% of all mortgage money is
    On london property

    The Chinese cash buyers want to make a profit I guess but if prices plunge they will not sit
    Around saying oh well..and the idea that cash buyers keep buying in a down market is rubbish

    China has its own bubble that is bursting which will affect their outlook

    Reply
    Please complete the required fields.



  • a. The Chinese have started buying old buildings. They have now moved on and are buying up lots of disused warehouse in Manchester for inflated prices.
    b. Estate agents have a big sway on who a seller chooses. They are looking for the quickest and securest buck and at the moment they go for people that have the least issues with finance. Once we hit peak this will change, but we are not there yet. the governments attempt to reign in the market will have no effect until we hit peak and the speculative buyers with large pockets sit back.

    Reply
    Please complete the required fields.



  • 5 @Libertas – wow, that is an extraordinary bid for massive government intervention and regulation. A bit out of character in my opinion…

    Reply
    Please complete the required fields.



  • hpw – but don’t we need to distinguish between the Chinese off-plan buyers who are mostly middle-class savers looking for speculative gains outside London (too expensive) and the financial speculators creaming off large sums from the shadow banking sector to buy existing high-end London properties?

    Reply
    Please complete the required fields.



  • hpw – but don’t we need to distinguish between the Chinese off-plan buyers who are mostly middle-class savers looking for speculative gains outside London (too expensive) and the financial speculators creaming off large sums from the shadow banking sector to buy existing high-end London properties?

    But quality is quality, at either end of the market.

    There is absolutely no way, any Chinese speculator is going to want to get involved in decoration or issues of damp or other any of those low-level maintenance housing issues.

    Reply
    Please complete the required fields.



  • If prices fell though could you get them to pay the 4-5k maintenance fee?

    Reply
    Please complete the required fields.



  • The middle-class off-plan buyer of a flat in Croyden wouldn’t be involved in maintenance and decoration because the flat isn’t built yet and the buyer wouldn’t want the bother and expense of flying over and arranging such things, and he/she assumes. rightly or wrongly, that since it’s new there won’t be any such issues to deal with. These considerations don’t apply to high-end London buyers.

    Reply
    Please complete the required fields.



  • So they’ll be trying to sell before completion then…..what if prices fall and they cannot sell….what happens
    Then

    Reply
    Please complete the required fields.



  • If prices fell though could you get them to pay the 4-5k maintenance fee?

    Not sure they intend keeping for that long. It’s money hungry for yield.

    Reply
    Please complete the required fields.



  • Libertas @5
    I believe that EAs are legally obliged to pass on offers. So one that does not do so could be taken to court.

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>