Mortgages scarcer than ever

formulaonefan

Realy wrote: »

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.

I don't think so! There are so many properties mate. I have been looking at right move for the south east and south west. The total properties unsold is a lot.

I think you are thinking I am talking the market up

Personally there is no such thing as talking up or talking down the market. The reality is totally different. Even if someone decides to buy a property now (after you talked up the market) the next thing is.... the banks. One should be able to afford and the banks should lend as well. Couple of years ago, all you had to think is "I need a property" and you can get one (110% or 100% mortgages etc). But now No! Forget it!

There are loads of people out there who want to buy a property. But they can't afford it and banks won't lend it either.

ad9898_3

Heyman wrote: »

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

Why ?, I have enough for 50% LTV now on a 3 bed detached, given a couple more years of this situation and I won't need a mortgage at all.

teabelly

Anyone with their house on the market now will be treated by all prospective purchasers as desperate to sell. There are lots of people that will not sell below a certain amount so they'll either wait or stay put. Some won't be able to sell below what they owe so no amount of haggling or demanding falls will change their position.

Higher ltvs is usually a classic way of rationing. If you only have X funds to lend then you want the Y% cream off the top with the large deposits not the normal plebs with the credit card debt, high salary multiples and low deposit. LTVs were going up and now they are going back down again as I think the banks basically want to hang onto as much cash as possible rather than loaning it out even though some of it is our money anyway now.

WTF?_2

teabelly wrote: »

Anyone with their house on the market now will be treated by all prospective purchasers as desperate to sell. There are lots of people that will not sell below a certain amount so they'll either wait or stay put. Some won't be able to sell below what they owe so no amount of haggling or demanding falls will change their position.

If everyone actually owned their house outright, maybe holding out on selling prices might hold the market up.

But there are lots of people who have to service very large debts on their homes. Even if they 'can't afford to sell' neither is holding on to them an option.

Meanwhile, lots of people own multiple rental properties that aren't paying their way and won't be able to hold on to them indefinitely.

By now the message must have sunk in - this isn't a blip, things are looking very very bad for at least the next couple of years. We've already seen a crash in the order of >10% in a year and that's even before economic hard times really hit. You don't have to be an oracle to figure out what happens next as the job cuts and general 'real world' economic gloom descends......

casper_uk

Mortgages still available with a decent deposit, nice to see a bit of normality return to the market in these troubled times

pickledpink

What people need to remember is that the majority of homeowners have a huge amount of equity in their homes. On top of that their mortgage repayments are easily affordable (especially for those who bought, say, 10 years ago) so there's no way they're going to put their property on the market in the present climate!!!:money:

They don't need to - and don't want to.

Most property coming on to the market is inherited/repos - or dumps.

But it doesn't matter how cheap some people will try to ditch their properties. Banks are only lending to the squeaky clean with lots of dosh. Joe Bloggs now has even less chance of getting on to the ladder - the mortgage deals are no longer available.

ad9898_3

pickledpink wrote: »

What people need to remember is that the majority of homeowners have a huge amount of equity in their homes. On top of that their mortgage repayments are easily affordable (especially for those who bought, say, 10 years ago) so there's no way they're going to put their property on the market in the present climate!!!:money:

They don't need to - and don't want to.

Most property coming on to the market is inherited/repos - or dumps.

But it doesn't matter how cheap some people will try to ditch their properties. Banks are only lending to the squeaky clean with lots of dosh. Joe Bloggs now has even less chance of getting on to the ladder - the mortgage deals are no longer available.

Not strictly true, there a lot of properties that have to be sold because of employment relocation/unemployment, divorce etc.., there are a lot of properties (over 300) on Rightmove near me, very few that I would consider dumps, not likely to be probate either. And as far as repo's go, well I'm sure there will be some but there only 5 auctions out of 300+, a reasonable indicator of a repo.

pickledpink

ad9898 wrote: »

Not strictly true, there a lot of properties that have to be sold because of employment relocation/unemployment, divorce etc.., there are a lot of properties (over 300) on Rightmove near me, very few that I would consider dumps, not likely to be probate either. And as far as repo's go, well I'm sure there will be some but there only 5 auctions out of 300+, a reasonable indicator of a repo.

Yes, that's true. People do relocate due to employment, but they're far more likely to rent their home out and rent one for themselves close to where their new job is.

As for those who become unemployed, most of them have a safety net whereby their insurance company will pay their mortgage if they lose their jobs. I'm not sure how long that lasts for (maybe a year?) but it gives them some breathing space. And then of course the DWP will pay the interest on their mortgages if they don't find a job after a year. So they'll still get to keep their homes.

As for divorcees -they'll just have to compromise and wait!

Gorgeous_George

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.

Only 3,281 different deals and we think that is a low number

How many ways can you dress up a 25-year loan?

GG

Realy

formulaonefan wrote: »

I don't think so! There are so many properties mate. I have been looking at right move for the south east and south west. The total properties unsold is a lot.


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Look I have said their are loads of properties on the market do you read what I say?
What i said ther is not as many new properties coming on the market. But the reason for people not putting properties on the market is not because there are to many unsold.
People neet to sell for work etc. Do you think they would not put their house on the market because there are to many.
What is your explanation on the massive number off proerties coming on the start of the year if it was not cashing in?