Nationwide Nov08: -0.4% Mom, -13.9% Yoy

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borntobefree wrote: »

A couple of months of not very big price falls would surely give the banks confidence to start lending again.

This is the myth that is being pedaled by VI's and the government. There is no more money to lend. What people have to understand is that most of the money that has been lent by the banks over the last decade does not exist, money was being conjured from thin air which was being lent against the perceived value of the commodity, in this case, houses, which have been seen as not worth anywhere near the fantasy values put on them in the last few years, hence the banking crisis.

The CEO from The Co-op bank was on the radio this morning, a lot more money now has to come from savings, not the markets. This is why the banks can't/won't lend silly amounts of money on properties that are simply not worth the kind of money that has been asked over the last few years.

The banks now know this, hence that most of the really good mortgage deals out there require a 60-75% LTV. By doing this the banks are saying 'the houses you are buying are not worth the money but we don't care because we are asking you, the buyer, to put down a large deposit to cushion our investment.'

Just editing to add, that if auction prices were part of the figures, I pretty certain from what I'm hearing that house prices would be down over 30% now if an average was taken, never mind the end of next year, however unfortunately they aren't.

neverdespairgirl

wintersunshine wrote: »

The early 1990's were different because there was no government support for mortgage holders if you lost your job. Now if you lose your job, after 13 weeks the government will pay the interest on your mortgage..

I'm sure there was a similar scheme in the early 90s.

skap7309

Has anyone seen the headlines? This'll get them plenty of sales.

Portsmouth Today Fall in house prices starts to slow

Telegraph Fall in UK house prices slows but no recovery yet warns Nationwide

Yorkshire Post Fall in house prices starts to slow

This Is Money House price slump eases off in November

So anything less than a 1% fall means the HPC is ending? I personally put it down to the IR cut and the masses thinking it is the end and jumping in, or people ready to buy have seen the cut and thought 'now is the time'. Normal service (being 1%+ falls) resumed next month?

neverdespairgirl

borntobefree wrote: »

It would cost me £1750 per month MORE to rent my house than buy it. I should imagine that most people are in this position. The rent versus interest calculation only really work for FTBs.

Yes, I agree to a large extent. And STR isn't by any means a generally good idea.

But you'd have to add interest on equity stashed int he bank to the cost equation, a lost opportunity cost.

neverdespairgirl

Conrad wrote: »

The realist assimilates ALL the evidence
The pessimist brain on the other hand is a sublime filter

An optimist thinks we live in the best possible world.

A pessimist knows we do.....

Lotus-eater

I've been waiting for the first person in RL to tell me that house prices are rising again Its not happened yet, but it won't be long.
I knew when I logged on here someone would sort me out. :rotfl:

baileysbattlebus

MissMoneypenny wrote: »

This seems to be the new temporary measurements:_
"April 2009
Help with mortgage costs – due to housing market problems
There will be a temporary:

• Cut in waiting time from 39 to 13 weeks, and
• Increased in the loan limit from £100,000 to £175,000

But for new JSA claimants, support for mortgage interest will stop after 2 years! Existing recipients will be okay."
http://www.newcastle.gov.uk/core.nsf/a/wr_bench2009

Wasn't there a thread recently about LLoyds not allowing people to move from repayment to interest only mortgages?

The new scheme starts in January and the ceiling is now £200k - still for 2 years though. And the "standard rate of interest" which was about 1.5% above BoE base rate, has been lifted. It's now actual interest rate.

It's one of the reasons I think lenders may be more sympathetic if you want to move on to interest only. Ofcourse you can only ask and they can always say no.

andrewmp

baileysbattlebus wrote: »

The new scheme starts in January and the ceiling is now £200k - still for 2 years though. And the "standard rate of interest" which was about 1.5% above BoE base rate, has been lifted. It's now actual interest rate.

It's one of the reasons I think lenders may be more sympathetic if you want to move on to interest only. Ofcourse you can only ask and they can always say no.

Only for existing claimants though isn't it.

baileysbattlebus

borntobefree wrote: »

It would cost me £1750 per month MORE to rent my house than buy it. I should imagine that most people are in this position. The rent versus interest calculation only really work for FTBs.

We're in a similar position - we have a 5 bed house and the mortgage is about £500 pm, to rent a similar house would cost us at least £1500. And I know a lot of people like us.
A one bed flat here rents for around £600-650.

LittleMissAspie

wintersunshine wrote: »

Generali I personally know people with severe learning difficulties who have found work in the North of England over the last few years. I find it hard to believe that someone couldn't have found a job if they had wanted one. Sorry.

You are misunderstanding. It's not that they can't find any old job to do. It's that they can't find a job that would pay more than their benefits.

borntobefree wrote: »

The rent versus interest calculation only really work for FTBs.

Well of course. If you bought long ago when prices were cheaper then of course your mortgage payments will be less than someone who buys your house now. But the market can't sustain itself without FTBs, that's why rent vs interest is important.