Mortgages scarcer than ever

chucky

i agree this bit of what you have said

my point was reducing the number of products available does not impact the funds that are available to lenders, just the choice.

i wasn't talking over the last year but in the last few months by taking out all of the crazy 100% and 5x income stuff there should be no impact really.

formulaonefan

Heyman wrote: »

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.

I will second that. Mortgages are very hard to come by these days. They are expensive to get, need more deposit and the 3.5x and 4x salary is not enough to buy the house you want. When someone decide to buy with what they can afford (i.e. 3.5x salary) then they get such a small place and a prospect of not moving up the ladder quickly because of weak housing market is putting people off.

Property prices will only start to go up IF lenders go back to 100% or 110% or crazy 6X or 7X your salary.

OR

After a Property price correction and ease of lending!

Realy

Most probably worth pointing out that their are less lenders also due to mergers etc. That would account for a fair few pulling of products.
But yes at least for the next month or so the best rates are restricted to 20% deposit.
More products should arrive if the inter bank lending does free up.

beingjdc

Realy wrote: »

Have you not noticed now that less houses are coming on the market compared to 3-6 months ago?

Personally in all the areas I watch I'm seeing far more.

Realy

formulaonefan wrote: »

Property prices will only start to go up IF lenders go back to 100% or 110% or crazy 6X or 7X your salary.

OR

After a Property price correction and ease of lending!

Wrong property prices will start to go up when they are afordable to FTBers or are cheaper than renting.
PS most are neither at the moment. But FTBers are the driving force of the market, that is why the wheels have fallen off.

Realy

beingjdc wrote: »

Personally in all the areas I watch I'm seeing far more.

i am registered on right move and in the areas I looked at I am seeing about 1 property a week in the price range this was from arround 15.
I agree numbers available are up but new properties coming on the market are way down.

formulaonefan

Realy wrote: »

Wrong property prices will start to go up when they are afordable to FTBers or are cheaper than renting.

In order to afford you need good deposit and a good job to keep up repayment.
In order to be cheaper lenders need to easy lending or more competitive environment.

BOE has cut the interest rate by 0.5% but lenders are not passing it on to new buyers. Yes when inter-bank rates gets cheaper they are going to offer good interest rate. But after all the recent losses banks are not going to compete to lend money that easily. Not for few years!

Under the current economic climate I can't see any of it happening.

Economy under recession!
Job Risks
High debt
Inflation

The list keeps on growing.

formulaonefan

Realy wrote: »

i am registered on right move and in the areas I looked at I am seeing about 1 property a week in the price range this was from arround 15.
I agree numbers available are up but new properties coming on the market are way down.

Yes, I would agree with you, new properties coming into the market is slowing down but the reason is, existing properties haven't moved yet. There are so many properties waiting to be sold. Sellers are holding back and waiting to see what happens next year and also they know there are loads of properties around and brining their into this market is going to make it even cheaper.

They are hoping next year market will improve! But sadly the current climate seems to suggest otherwise. It will take some time to move things forward.

Realy

formulaonefan wrote: »

BOE has cut the interest rate by 0.5% but lenders are not passing it on to new buyers. Yes when inter-bank rates gets cheaper they are going to offer good interest rate. But after all the recent losses banks are not going to compete to lend money that easily. Not for few years!

.

Look you chose to miss my other points.
4M people ar on a BOE tracker, you can not say mortgage rates will not come down soon do you know what the bailout is going to do to LIBOR rates or what the BOE is going to do?
I cant be sure but it is more likely to drop them.
Dont be so scared of missing the boat prices will keep droping but the deciding factor is.

When FTBs come back to the market.
Or when it is cheaper than renting.

I am not saying prices are going up (they are going to go down) but i would say for sure rates are coming down.

Realy

formulaonefan wrote: »

Yes, I would agree with you, new properties coming into the market is slowing down but the reason is, existing properties haven't moved yet. .

What people don't put their house for sale because their are to many properties for sale. (Sorry cant take the new job to many houses for sale):rotfl:
The reason for the massive amount on the market earlier this yearwas cashing in.
Now people realise they can't sell they are not putting them up for sale or the sale prices is below their percived value.
I think you are thinking I am talking the market up, I am not, but some of your arguments have serious holes in them.