Mortgages scarcer than ever

domcastro

When I search rightmove for houses within 3 miles of my work and < 250k in Dorset - I get 1000+ in the results. I get about 15 pages of houses at 250/249. I still reckon they're overpriced though. A lot of the houses I see for 250k, I wouldn't pay 180 for

zappahey

pickledpink wrote: »

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.

Maybe not that simple. This is purely anecdotal, so take it as you like, but when we moved to a Wiltshire market town in 2005 there were two 4-bed rental properties available on Rightmove for under £1000. Now there are two pages of them and they're not moving either.

Gorgeous_George

Be careful with Rightmove. Some houses appear more than once.

I did a search for home under £250K within 3 miles oof my home and had 29 hits. Two were same plot of land and four were duplicate houses. The net return should have been 23.

GG

penguine

Gorgeous_George wrote: »

Be careful with Rightmove. Some houses appear more than once.

I did a search for home under £250K within 3 miles oof my home and had 29 hits. Two were same plot of land and four were duplicate houses. The net return should have been 23.

GG

I've seen this too, especially houses that are listed with more than one EA.

ixwood

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.

lol. Your arguments have a few too!

The "People just won't sell" argument is rubbish. There's always forced sellers. Repossessions, divorces/splits, deaths, BTL numpties in far too deep etc. These set the prices for the rest of the market.

Plus, now prices are plummeting, why would a FTB buy and not wait? It's the opposite effect on "must get on the ladder!!" on the way up.

Not too mention the debt crunch.

Or the recession/depression/unemployment etc.

Or the trillions that have disappeared via stock markets.

neverdespairgirl

pickledpink wrote: »

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

You keep saying that, it's not what I can see happening on Rightmove, though.

neverdespairgirl

chucky wrote: »

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?

It's an indication, though, of the difficulties of getting a mortgage, and the decreased amount of money available.

You are of course right that it doesn't in itself mean there is less lending going on.

Heyman_2

Realy wrote: »

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?

Wrong - people are still taking out mortgages, although a lot less people than have previously. Plus, you still have cash buyers.

But I agree with you that no-one will go unless they are forced to move. And the fixed rate LTV time bomb will see to that in the form of distressed selling and reposessions from people who can't afford to pay their mortgage once they come off their initial rate, but can't move due to negative equity.

Your 0 buyers = 0% drops theory is a non-reality, as there will always be sellers and buyers, and sellers who NEED to sell will have to price accordingly to attract the scant amount of buyers around at the moment.

Heyman_2

ad9898 wrote: »

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.

I don't dispute it, but in your own words there you won't need a mortgage so it won't apply to you

The point I'm making is that given what's happened banks are going to be VERY careful about who they lend to and how much from now on, and I can't see that changing for a good while. Regardless of how much houses cost.

baby_boomer

chucky wrote: »

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

And the value.