The market is gathering momentum.

Conrad

FEB 2009

Yes I'm a pessimist by nature, but I have to report new trends that are feeding through into higher sales numbers.

The realist will welcome all inputs in order to accurately take the temperature of the economic landscape.


+ Increased business from those wanting to upscale in view of the fact the gap between rungs has decreased. For example houses here that were £300k are now typically £250k, whereas the 2 beds have fallen by only about £25000, so the upscaler is £25000 better off.


+ Marked increase in activity for 2 bed and the cheaper 3 bed houses, as people down size. In an area such as Great Dunmow there is a growing shortage of proprties in this range.

+ Lenders dipping toes back into the market; Alliance & Liecester are bombarding me with the following messages - ' we accept most state benefits as income, we accept 100% of commission and overtime'

+ C & G (that os so cautious lender) give up to 5x income as a multiple on the sourcing software brokers use.

Another lender this morning agreed this 'risky' case; Age 57, limited self employed income proof, agricultural tied on the property (so hard to resell if repo'd), recent £3000 ccj, recently had to sell last business'. I've had him write his own budget planner and sign plus requested an Accountants endorsement to protect myself.


It's not booming, but there is a definite upsurge and I am able to place mortgages for most as long as there is a reasonable deposit. Remortgages are significantly down as people are simply rolling onto variables and trackers at anything from 1.1% - 3.5% in most cases I've seen.

Really2

Conrad wrote: »

Yes I'm a pessimist by nature, but I have to report new trends that are feeding through into higher sales numbers.

The realist will welcome all inputs in order to accurately take the temperature of the economic landscape.


+ Increased business from those wanting to upscale in view of the fact the gap between rungs has decreased. For example houses here that were £300k are now typically £250k, whereas the 2 beds have fallen by only about £25000, so the upscaler is £25000 better off.


+ Marked increase in activity for 2 bed and the cheaper 3 bed houses, as people down size. In an area such as Great Dunmow there is a growing shortage of proprties in this range.

+ Lenders dipping toes back into the market; Alliance & Liecester are bombarding me with the following messages - ' we accept most state benefits as income, we accept 100% of commission and overtime'

+ C & G (that os so cautious lender) give up to 5x income as a multiple on the sourcing software brokers use.

Another lender this morning agreed this 'risky' case; Age 57, limited self employed income proof, agricultural tied on the property (so hard to resell if repo'd), recent £3000 ccj, recently had to sell last business'. I've had him write his own budget planner and sign plus requested an Accountants endorsement to protect myself.


It's not booming, but there is a definite upsurge and I am able to place mortgages for most as long as there is a reasonable deposit. Remortgages are significantly down as people are simply rolling onto variables and trackers at anything from 1.1% - 3.5% in most cases I've seen.

Don't lie, we know it is your job and not just hear say. It just does not fit in with the board.;)

abaxas

Q.

What about subprime? Anything available yet, or is it still 9%+?

bubblesmoney

Conrad wrote: »

Yes I'm a pessimist by nature, but I have to report new trends that are feeding through into higher sales numbers.

The realist will welcome all inputs in order to accurately take the temperature of the economic landscape.


+ Increased business from those wanting to upscale in view of the fact the gap between rungs has decreased. For example houses here that were £300k are now typically £250k, whereas the 2 beds have fallen by only about £25000, so the upscaler is £25000 better off.


+ Marked increase in activity for 2 bed and the cheaper 3 bed houses, as people down size. In an area such as Great Dunmow there is a growing shortage of proprties in this range.

+ Lenders dipping toes back into the market; Alliance & Liecester are bombarding me with the following messages - ' we accept most state benefits as income, we accept 100% of commission and overtime'

+ C & G (that os so cautious lender) give up to 5x income as a multiple on the sourcing software brokers use.

Another lender this morning agreed this 'risky' case; Age 57, limited self employed income proof, agricultural tied on the property (so hard to resell if repo'd), recent £3000 ccj, recently had to sell last business'. I've had him write his own budget planner and sign plus requested an Accountants endorsement to protect myself.


It's not booming, but there is a definite upsurge and I am able to place mortgages for most as long as there is a reasonable deposit. Remortgages are significantly down as people are simply rolling onto variables and trackers at anything from 1.1% - 3.5% in most cases I've seen.

:eek: wonder if the mortgage provider was one of the state owned or backed ones in the case of the agriculture tied property. so effectively brown is forcing banks to lend to risky clients who have already folded businesses recently plus have ccjs and now getting mortgages with tax payers bearing the risk cost.

StevieJ

I think we are aware that the market is having severe problems, but thanks for a view that is not tainted by the dark skies of depression It has almost got to the point on this board where you don't need to read a post to know what the general theme of the post will be, much facilitates rapid reading Once again thanks for the balanced post.

chucky

thanks for the update Conrad - there is more activity now but in my view i don't think it will impact house prices.

there will be a few flurrys of activity over the next 18 months that will make the house price average numbers flatten out due to some areas continuing to drop.

Conrad

As I say I have a pessimistic bent when it comes to the economy (not in my personal life - the opposite in fact), but at the same time I want to remain objective.

Uber pessimists are just as unrealistic as uber optimists.

Uber pessimists tend to frame themselves as realists, which, is far wide of the mark. I've made this point many times, yet not once has anyone on any forum framed themselves as an uber pessimists, they are of course merely realists:rotfl:

sympatex

Good anecdotal conrad, however whose buying the hosue of the "upscaler" must be all thosee FTB's with a 10% deposit willing to spend over 1,000 a month @ 6.5% on repayments.

Or those more common creatures FTB's with a 25% deposit looking to buy a newbuilds.

hmm, i'm offering on houses at 10-15% off asking price (asking prices which haven't budged since last october) and i'm getting no where. The mrkets not moving here!

Conrad

abaxas wrote: »

Q.

What about subprime? Anything available yet, or is it still 9%+?

Melton Mowbray BS and others have been offering subprime at around 7.5%.
BM Solutions (part of HBOS, now Lloyds) from around 8.4%.

Smaller Building Societies can consider the odd smallish CCJ (under £250) and offer prime rates.

mizzbiz

Thanks for the update Conrad.

Rather than making me feel optimistic, I am slightly worried that sub-prime lending is back on the cards. For once, I agree with Chucky, and I hope he is right.

It looks as if the banks that took a 'helping hand' have a foot on the back of their necks, this is not good. It would have been better to wait until prices are more reasonable, they are still far too pie in the sky.

chucky

mizzbiz wrote: »

For once, I agree with Chucky, and I hope he is right.

and it doesn't make us friends