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Freeze on mortgage lending to hit house prices

mystic_trev
mystic_trev Posts: 5,434 Forumite
Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
in House buying, renting & selling
Todays 'offering' is from the Sunday Times. The usual 'bullish' Fionnuala Earley, from Nationwide, has suddenly turned 'Bear' As they say......there may be trouble ahead!

NATIONWIDE, Britain’s biggest building society, has warned that house prices could drop 5% this year because of the credit crunch. It is the first of the big lenders to publicly say values could fall. Its official forecast, and that of rival Halifax, is that prices will be flat this year. Fionnuala Earley, chief economist at Nationwide, said: “We have always thought there was a risk of falls of up to 5% if the financial unrest carried on for longer than anticipated.”
The prediction comes amid widespread fears of a mortgage “famine” as lenders rein in their lending.

http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article3601935.ece

Beth looks a bit of a babe ;) I wonder why she's hanging out with that gimp:rotfl:
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Comments

  • Lotus-eater
    Lotus-eater Posts: 10,789 Forumite
    10,000 Posts Combo Breaker
    With a mortgage of £198,000, she believed the property to be worth £220,000 and therefore needed to borrow 90% of the value of the property. However, Abbey said the 2-bedroom flat was worth just £200,000, taking her mortgage to 99% of the property value – but it does not offer loans on such high values.
    I know squat now keeps saying this will happen, but unless I have moved home, I have never had a valuer come to my house to value it when I have changed mortgages. Is it something that will happen more, or does it just happen when you have a high LTV?
    Freedom is not worth having if it does not include the freedom to make mistakes.
  • Caffca
    Caffca Posts: 235 Forumite
    Part of the Furniture Combo Breaker
    mystic_trev wrote: »
    Beth looks a bit of a babe ;) I wonder why she's hanging out with that gimp:rotfl:

    Odd name for a bloke - Kathryn! Wonder if he/she is mid-op?

    I think 5% is probably about right - not that I am qualified in anything financial just looking at what prices have been doing in the areas I'm interested in.
  • mystic_trev
    mystic_trev Posts: 5,434 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Survreyors are covering their @rses, particulary where [STRIKE]Luxury Apartments[/STRIKE] Flats are concerned!
  • PeteMc
    PeteMc Posts: 567 Forumite
    Part of the Furniture 500 Posts
    Odd name for a bloke - Kathryn! Wonder if he/she is mid-op?

    :rotfl:

    The picture is of Karl and Bethan Bruen, of Halstead, Essex. There is a case story further down the article.

    Elizabeth Colman and Kathryn Cooper are the authors of the article.
  • Caffca
    Caffca Posts: 235 Forumite
    Part of the Furniture Combo Breaker
    PeteMc wrote: »
    :rotfl:

    The picture is of Karl and Bethan Bruen, of Halstead, Essex. There is a case story further down the article.

    Elizabeth Colman and Kathryn Cooper are the authors of the article.

    Ooops! Think I need to brush up on my speed-reading skills again then :D
  • BobProperty
    BobProperty Posts: 3,245 Forumite
    1,000 Posts Combo Breaker
    Lotus-eater wrote: »
    With a mortgage of £198,000, she believed the property to be worth £220,000 and therefore needed to borrow 90% of the value of the property. However, Abbey said the 2-bedroom flat was worth just £200,000, taking her mortgage to 99% of the property value – but it does not offer loans on such high values.
    I know squat now keeps saying this will happen, but unless I have moved home, I have never had a valuer come to my house to value it when I have changed mortgages. Is it something that will happen more, or does it just happen when you have a high LTV?
    SquatNow, as he frequently does, is talking "wishful thinking" from his unique perspective. He has yet to show any proof that BTL mortgages are subject to margin calls and Generali(?) checked out the biggest BTL lenders (Mortgage Express, etc.) and none have margin calls in their products.
    The subject of this quote was re-mortgaging because it looks like an initial deal was ending (she said she bought 2 years ago) and she thought she could get a better deal elsewhere. There is nothing to stop her not re-mortgaging and just continuing on her original lender's SVR. It's usually just moneysaving to do so, which is why we are here. There was no question of her being forced to re-mortgage otherwise that would have been front page news on several papers.
    A house isn't a home without a cat.
    Those are my principles. If you don't like them, I have others.
    I have writer's block - I can't begin to tell you about it.
    You told me again you preferred handsome men but for me you would make an exception.
    It's a recession when your neighbour loses his job; it's a depression when you lose yours.
  • merlinthehappypig
    merlinthehappypig Posts: 1,106 Forumite
    I think squatnow is a 'she', rather than a 'he', but I might be wrong.
  • BobProperty
    BobProperty Posts: 3,245 Forumite
    1,000 Posts Combo Breaker
    merlinthehappypig wrote: »
    I think squatnow is a 'she', rather than a 'he', but I might be wrong.
    :confused: SquatNow has a girlfriend, and hasn't been around for a few days. I'm sure he(she) will have a few comments to make when he(she) gets back. Hopefully he(she) isn't "helping Police with their enquiries" in connection with breaking and entering empty properties and is merely taking a break from here.:D
    A house isn't a home without a cat.
    Those are my principles. If you don't like them, I have others.
    I have writer's block - I can't begin to tell you about it.
    You told me again you preferred handsome men but for me you would make an exception.
    It's a recession when your neighbour loses his job; it's a depression when you lose yours.
  • merlinthehappypig
    merlinthehappypig Posts: 1,106 Forumite
    Odd isn't it. You assume things from posts people have written. I bet none of us are actually anything like the pictures we might have in our minds.

    I'd always had squatnow down as a man, but a thread a few days ago referred to him (her) as a 'she'. As the poster who said this was vastly more experienced on here than me, I assumed that I had always been wrong.
  • Numbnutz_2
    Numbnutz_2 Posts: 16 Forumite
    merlinthehappypig wrote: »
    Odd isn't it. You assume things from posts people have written. I bet none of us are actually anything like the pictures we might have in our minds.

    I'd always had squatnow down as a man, but a thread a few days ago referred to him (her) as a 'she'. As the poster who said this was vastly more experienced on here than me, I assumed that I had always been wrong.
    Squatnow is probably several different people (kids) from some 6th form Politics class.
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