95% LTV is back

ad9898_3

slipthru wrote: »

Could this not just reverse the falls and inflate the bubble a little more? and essentially put off the pain of repossession to a few years further down the line, when interest rates or more certainly tax rates get hiked.

The key word is 'recession'. 'Inflation of house price bubble' and 'recession', are mutually exclusive and cannot be used together in the same sentence. House prices will continue to fall in a recession, that is a certainty, by how much ??, well that part is open to debate. On this forum you get people saying anything from 5% down next year (zero chance in my opinion) to 20% down next year (more than a possibility)

Paulgonnabedebtfree

adr0ck wrote: »

Both Bank of Ireland and Abbey offering 95% LTV for first time buyers

I'm just wondering what the interest rates are for this. Also, how frugal are they when assessing the value of a property. 95% on paper could easily be less in reality.

GracieP

ad9898 wrote: »

'Inflation of house price bubble' and 'recession', are mutually exclusive and cannot be used together in the same sentence.

Sure they can. Eg; Record inflation of the house price bubble was followed by the worst recession of our generation.:p

slipthru

ad9898 wrote: »

The key word is 'recession'. 'Inflation of house price bubble' and 'recession', are mutually exclusive and cannot be used together in the same sentence. House prices will continue to fall in a recession, that is a certainty, by how much ??, well that part is open to debate. On this forum you get people saying anything from 5% down next year (zero chance in my opinion) to 20% down next year (more than a possibility)

Yes i know you are correct, i'm just wondering how this will impact on falling house prices as there are stupid people out there who would think that a 95-100 mortgage right now is a great idea.

I'm guessing little, as the banks must have a very strict lending criteria in place, and this must be more just please clown, but who knows.

hethmar

I wonder if its just lip service to the Government encouraging them to lend? And when people apply the restrictions are so tight no one actually gets the 95% loan?

ad9898_3

GracieP wrote: »

Sure they can. Eg; Record inflation of the house price bubble was followed by the worst recession of our generation.:p

I just knew someone would could up with that, even as I was writing it.:D

ad9898_3

slipthru wrote: »

Yes i know you are correct, i'm just wondering how this will impact on falling house prices as there are stupid people out there who would think that a 95-100 mortgage right now is a great idea.

I'm guessing little, as the banks must have a very strict lending criteria in place, and this more just please clown, but who knows.

The banks will not be able to lend in the way they have in the past 3-4 years, it's not possible as the money does not exist, so expect these mortgages to have limited availability, which means little to zero impact on the housing market, this will save the stupid people from themselves.

I'm not really sure how many stupid people are out there to be honest, it seems common sense not to borrow 95% on something that you know has lost 18% in the last 14 months with only 3 months of recession, and we know there is another 12 months recession in front of us, so take your guess as to where house prices will be next year, not the same price as today for certain.

So it would be like getting your 5% deposit and burning it, surely people aren't that stupid, are they ?

adr0ck

ad9898 wrote: »

I'm not really sure how many stupid people are out there to be honest, it seems common sense not to borrow 95% on something that you know has lost 18% in the last 14 months with only 3 months of recession, and we know there is another 12 months recession in front of us, so take your guess as to where house prices will be next year, not the same price as today for certain.

So it would be like getting your 5% deposit and burning it, surely people aren't that stupid, are they ?

as long as you don't plan to move for a few years and also get a long enough deal that you don't need to remortgage then whats the problem?

one thing is for certain ad eventually house prices will be higher than they were in 2006/2007

ad9898_3

adr0ck wrote: »

one thing is for certain ad eventually house prices will be higher than they were in 2006/2007

I agree, it's just a matter of when, the evidence last time round was 10 years. The example I have is my Mum & Dads old house, sold in Aug 88 for 68k, sold again in Oct 98 for 75k.

The key here is, any time within that 10 year period that house could have been bought for less, sometimes much less than 68k.

adr0ck

as long as people take the view that a home is for life and not just for Christmas then theres no problem