Mortgages scarcer than ever

neverdespairgirl

Those old green shoots need watering.....

http://news.bbc.co.uk/1/hi/business/7663525.stm

The number of mortgage products available to new borrowers hit its lowest figure since the start of the credit crunch, according to Moneyfacts.
On Friday there were 3,281 mortgages available for new borrowers, compared with 10,726 a year ago, the financial information service says.

At the height of the market in July 2007, there were 13,027 offers.
Separately, Abbey confirmed it was not passing on Wednesday's cut in the Bank rate to new tracker deals.
Abbey has confirmed that it is keeping the interest rate on all of its tracker mortgages for new borrowers unchanged, in spite of a half a percentage point cut in the main Bank of England interest rate on Wednesday.

WTF?_2

Hoorah! Some housing news at last!

ad9898_3

And Abbey are refusing to pass on the rate cut to new borrowers.

Just one other thing to mention, I don't know if I heard this right but Lloyds TSB have withdrawn all mortgages above 75% LTV, if true, its all good news for us wishing prices to collapse.

Heyman_2

Yeah, good news indeed, prices will collapse and you still won't be able to get a mortgage :rotfl:

Realy

ad9898 wrote: »

And Abbey are refusing to pass on the rate cut to new borrowers.

Just one other thing to mention, I don't know if I heard this right but Lloyds TSB have withdrawn all mortgages above 75% LTV, if true, its all good news for us wishing prices to collapse.

If people dont buy you have a stand off.

0 buyers = 0% drop.

Heyman_2

Realy wrote: »

If people dont buy you have a stand of

0 buyers = 0% drop.

No, because estate agents and surveyors will still attach value to properties regardless of whether there are buyers or not. And the more similar properties on the market, the lower that value will be.

Realy

Heyman wrote: »

No, because estate agents and surveyors will still attach value to properties regardless of whether there are buyers or not. And the more similar properties on the market, the lower that value will be.

?
But if no one buys there is no sale. I could market my house for £1M if it does not mean house prices have gone up?

So no sales = 0% drops.
The value of anything is what it is sold for not advertised?
Figures are based on sales prices.!
PS if nothing sells there is noting to compare against that is why surveyors are having difficulties valuing properties at the moment.

Heyman_2

SOME figures are based on sale prices, such as the land registry figures. You also get figures from RICS and Rightmove that are based on asking prices.

And whilst you are correct that the value of anything is what it is sold for, the counter to that is if supply is outstripping demand then you need to be more competitive with your price if you wish to sell. Simple as!

chucky

neverdespairgirl wrote: »

Those old green shoots need watering.....

http://news.bbc.co.uk/1/hi/business/7663525.stm

The number of mortgage products available to new borrowers hit its lowest figure since the start of the credit crunch, according to Moneyfacts.
On Friday there were 3,281 mortgages available for new borrowers, compared with 10,726 a year ago, the financial information service says.

At the height of the market in July 2007, there were 13,027 offers.
Separately, Abbey confirmed it was not passing on Wednesday's cut in the Bank rate to new tracker deals.
Abbey has confirmed that it is keeping the interest rate on all of its tracker mortgages for new borrowers unchanged, in spite of a half a percentage point cut in the main Bank of England interest rate on Wednesday.

forgive me if i have totally missed the point and will get totally hammered if i have but less products only means less choice on the mortgage market.

strictly speaking this does not reduce the amount of lending that will be available just the option that you have to select from.

is this correct?

Realy

Heyman wrote: »

SOME figures are based on sale prices, such as the land registry figures. You also get figures from RICS and Rightmove that are based on asking prices.

And whilst you are correct that the value of anything is what it is sold for, the counter to that is if supply is outstripping demand then you need to be more competitive with your price if you wish to sell. Simple as!

But without mortgages you take out supply and demand. No one will sell unless forced as they could not move and get another mortgage.
Have you not noticed now that less houses are coming on the market compared to 3-6 months ago?

Heyman_2

Responding to chucky -

No - since July 2007, all the 100%+ mortgages have gone, almost all of the 95% deals and to be honest even the 90% deals are beginning to look thin on the ground.

Meaning that people who would want to borrow at this level cannot, and as such this market has totally disappeared. Similarly, the banks have tightened both multiple (i.e. 3.5x, 4x), affordability and risk criteria, so again a huge section of potential customers has been cut out.

Not much left, to be honest.