Mortgage Approvals July

lostinrates

pickles110564 wrote: »

This might not happen for a very long time

Giving the current FTBs time to save up and meet this point head on

tomstickland

pickledpink wrote: »

OK, that may mean some people will have to lower their aspirations as regards the property they want to buy, but that's what people did 30 years' ago! They never bought their dream home first time round; they traded up in stages.

Why can't people do that now?

When it costs 4Xsalary to buy a 1 bed flat, how much further can someone lower their aspirations?

mrstinchcombe

pickledpink wrote: »

OK, that may mean some people will have to lower their aspirations as regards the property they want to buy, but that's what people did 30 years' ago! They never bought their dream home first time round; they traded up in stages.

Why can't people do that now?

30 years ago people in unskilled manual industries would buy 3 bed terraced houses on one wage at around 3x their income

Someone in a similar industry suffers a life of renting nowadays

meanmachine_2

pickledpink wrote: »

It's highly likely that it will just be stalemate. Homeowners won't sell - they'll just stay put.

The properties which will become available will be the hard-to-sell ones which no-one ever really wanted anyway, or repossessions.

A few forced sellers who can no longer afford their repayments will sell.......but other than that most homeowners will just sit tight.

As there's fewer decent properties available (and there may be even fewer until things pick up) FTB's will have even LESS choice.

More drivel from pickledpink.

Funny how this character joined over 18 months ago but only recently has gone into posting overdrive.

Bored estate agent perhaps?

The fact is, people always have reasons to move - and to make that move a reality. In the real world this is what happens. I'll try to explain for the hard of thinking:

Vendor wants to trade up.
Sees property they like
Wants to sell current property
Doesn't want to lose new property.
Drops price and keeps dropping price til sale is made.

It's why I've been offered properties originally on for 450K at the much lower prixe of around 300K.

No "forced sellers" as such. No flea pits.

In the real world, as opposed to the world pickledpink inhabits, this is why prices fall, even on quality properties.

Oh, and by the way, banks are lending as they USED to lend. Anyone with a decent deposit can go into their bank and sensibly borrow a reasonable amount of dosh.

The reason why most people aren't doing this is because current property prices are UNreasonable, and still need to drop by a huge wedge.

It really isn't that hard to grasp.

justpurchased

meanmachine wrote: »

More drivel from pickledpink.

Funny how this character joined over 18 months ago but only recently has gone into posting overdrive.

Bored estate agent perhaps?

The fact is, people always have reasons to move - and to make that move a reality. In the real world this is what happens. I'll try to explain for the hard of thinking:

Vendor wants to trade up.
Sees property they like
Wants to sell current property
Doesn't want to lose new property.
Drops price and keeps dropping price til sale is made.

It's why I've been offered properties originally on for 450K at the much lower prixe of around 300K.

No "forced sellers" as such. No flea pits.

In the real world, as opposed to the world pickledpink inhabits, this is why prices fall, even on quality properties.

Oh, and by the way, banks are lending as they USED to lend. Anyone with a decent deposit can go into their bank and sensibly borrow a reasonable amount of dosh.

The reason why most people aren't doing this is because current property prices are UNreasonable, and still need to drop by a huge wedge.

It really isn't that hard to grasp.

So what are you looking to do you have already been offered 34% drops?

meanmachine_2

pickledpink wrote: »

The banks aren't lending at the moment - that's why they're down by over half.

Once the banks start lending again people will start buying again.

Drivel, drivel drivel.

If you've got a 10% deposit and "only" want to borrow 4 times your salary, you can go into any bank you please.

When PRICES fall to 4 times average salary, that's when approvals will go up again.

Jeez.

Are you being deliberately obtuse? Where's the unthank button?

meanmachine_2

justpurchased wrote: »

So what are you looking to do you have already been offered 34% drops?

Nothing. Because they weren't worth 450K in the first place - except in the minds of daft sellers who had bought into the hype that property only "ever goes up".

justpurchased

meanmachine wrote: »

Drivel, drivel drivel.

If you've got a 10% deposit and "only" want to borrow 4 times your salary, you can go into any bank you please.

When PRICES fall to 4 times average salary, that's when approvals will go up again.

Jeez.

Are you being deliberately obtuse? Where's the unthank button?

With the change of modern society eg both people working i do not see this part of historical afordability as now relevent.
Affordability now is down to house hold income.

justpurchased

meanmachine wrote: »

Nothing. Because they weren't worth 450K in the first place - except in the minds of daft sellers who had bought into the hype that property only "ever goes up".

So why bother registering with estate agents?

meanmachine_2

justpurchased wrote: »

With the change of modern society eg both people working i do not see this part of historical afordability as now relevent.
Affordability now is down to house hold income.

You can think what you like pal, but you won't get a bank to agree with you anymore.

Not now they have to account for every loan they make.

Also - what a sick society it is when both parents must slave away just to pay some stupid mortgage.