Mortgage Approvals July

Generali

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.

Where do you think the banks will get the money from to lend, please?

mewbie_2

Generali wrote: »

Where do you think the banks will get the money from to lend, please?

They'll borrow it of course.

I have borrowed from a well known song,

There's a hole in my budget, dear Gordon, dear Gordon.
Then fix it, dear Darling, dear Darling - fix it.
And how shall I fix it - dear Gordon, dear Gordon?
With borrowings - dear Darling, dear Darling - borrowings.
And where shall I borrow - dear Gordon, dear Gordon?
From the lenders, dear Darling, dear Darling - lenders.
But the lenders are broke - dear Gordon, dear Gordon.
Then give them some money - dear Darling, dear Darling.
But there's a hole in my budget - dear Gordon, dear Gordon.

justpurchased

Jonbvn wrote: »

TBH, I can foresee the situation where unskilled workers will never be in a position to own property.

Me to, with the population the size it is there will be so many people on a good wage, they will price out most of the population. The only way the unskilled/lowpaid will get on the ladder is more houses being built. But that is not going to happen for years now.
I think all the average price, Median wage arguments hide real figures and that is that there are a lot of people on £25K+ and these people are able to buy and have brought over the last 10 years. That is why we have not seen a glut of distressed selleres, the average house is not sold to the average person! and it is highly likely in the UK now there are enough people who are on £25K+ to stop prices falling to 3X or 4X single average wage.
The devide between rich and poor is growing not shrinking.

adr0ck

Generali wrote: »

Where do you think the banks will get the money from to lend, please?

!!!!!!? seems to think that theres loads of money in the system looking for a home (hence why we have increases in utilities)

is this not the case?

LittleMissAspie

justpurchased wrote: »

there will be so many people on a good wage, they will price out most of the population.

Er, what? If there are "so many" people on a good wage then they probably ARE "most" of the population.

justpurchased

LittleMissAspie wrote: »

Er, what? If there are "so many" people on a good wage then they probably ARE "most" of the population.

sorry for not making it clear but it is a bit complex.

Say there are 3 houses and 10 people. 3 people make £10, 2 make £5 the others make £2. The average wage would be £4.50, but going on 3X average earnings a house would be £13.50, Easily affordable for the 3 people comftable for 2, but for half of the people it would be 6.75X there wages.

There are no figures as far as i know to prove this but with a large population and only so many houses (available for purchase) it would be great to find out how many people could buy all of the uk houses (as this would perhaps give a more real outlook on property values).
Like above 3 people would shut out the market and drive up prices for everyone below.

Does this make sense? i hope so as it is hard to express this in writting.

geoffky

just purchased give it up! you are making yourself look silly...

justpurchased

geoffky wrote: »

just purchased give it up! you are making yourself look silly...

Well sorry I missed your massive contribution. All i am trying to say is that affordability can not be realy judged on averages.
like IQ's on averages you should be arround 100 but i am betting nearer amoeba, as your only contribution to a thread is to run me down.
But saying that some single celled creatures do some amazing things so i would put you at the lower end.

ginvzt

An explanation of 'average':
Just what is average?

mewbie_2

ginvzt wrote: »

An explanation of 'average':
Just what is average?

6" I believe...

and to segue back on topic...

... which is the average length of a piece of paper on which a mortgage agreement has been signed. Maybe.

Apologies for doing the stupid jokes, but I have got bored arguing with the bulls, we know they're wrong, they know they're wrong.