Things getting worse?

pandamonia

Anyone else notice that there seems to be even less 90% mortgages available now than last week?

All of britannia's 90% LTV have gone which were some of the best around.

I thought the banks were supposed to increase the lending?

base rate cuts simply dont feed down to 10-15% deposit mortgages.

As higher deposit mortgages get cheaper and the gap between 60% LTV and 90% LTV deals gets wider it will just make new buyers less likely to buy since they are getting a rough deal. Huge fees just arent justified also.

The Government keeps giving the banks money and none of it is getting down to the people who need it. they just pay themselves bonuses with it.

There doesnt seem to be much help for people looking to get on the market.

Also doesnt anyone know how these local authority mortgages work which are now 3.93%?

ad9898_3

Don't you mean things are getting better ?, the withdrawing of high LTV mortgages means the banks consider property at current levels to be a bad risk. Hence prices will continue to come down.

How are they to increase lending ?, they don't have it to lend.

I'm an FTB and they are helping me a huge amount, by keeping the deposits required as high as they are means more foolish FTB'rs who would rush in are kept out, thus saving themselves from themselves. The reason the rates for 10-15% deposits are kept high is because they expect the market to lose that much this year. You wouldn't want to throw all that money down the drain would you ?

pandamonia

ad9898 wrote: »

Don't you mean things are getting better ?, the withdrawing of high LTV mortgages means the banks consider property at current levels to be a bad risk. Hence prices will continue to come down.

How are they to increase lending ?, they don't have it to lend.

I'm an FTB and they are helping me a huge amount, by keeping the deposits required as high as they are means more foolish FTB'rs who would rush in are kept out, thus saving themselves from themselves.

i suppose thats one way of looking at it, but its the lack of new buyers in the market which is pushing things down. i would of thought that they would of stopped this buy helping new buyers. even a further 10% fall would not leave people in negative equity.

so are they factoring in even bigger falls?

there is an argument that they are now being too protective which will cause bigger problems than we currently have. starving the market of money will put house prices under serious pressure.

i personally disagree with the way mortgages are blanket sold. as each persons circumstances are different.

i consider myself to be a buyer who the market would want but they are not making it easy.

jungli_jim

64% of products available of the market require at a deposit greater than 25%, says it all to me.....another 25% to come off house prices.:j

bo_drinker

There are going to be thousands in good jobs but in neg equity big time and for a loooooooooooooooooooooooooooooooooooooooooong time if they haven't got money to get out of it. Those that moved in to their places and thought they would be moving on within a couple of years are stuck now. Meanwhile prices are only going one way, and it aint up.

ad9898_3

pandamonia wrote: »

i suppose thats one way of looking at it, but its the lack of new buyers in the market which is pushing things down. i would of thought that they would of stopped this buy helping new buyers. even a further 10% fall would not leave people in negative equity.

so are they factoring in even bigger falls?

there is an argument that they are now being too protective which will cause bigger problems than we currently have. starving the market of money will put house prices under serious pressure.

i personally disagree with the way mortgages are blanket sold. as each persons circumstances are different.

i consider myself to be a buyer who the market would want but they are not making it easy.

I've said it loads of times on here, don't go catching falling knives, I have a 40% deposit saved on the type of house I would look at buying (3 bed detached), however the market is never going to 'get me' until the bottom is reached, if I decide to stay here. Don't forget you have to earn £3 before tax for every £1 that needs to be paid off a mortgage. Just think how much you are saving right now.

pandamonia

ad9898 wrote: »

I've said it loads of times on here, don't go catching falling knives, I have a 40% deposit saved on the type of house I would look at buying (3 bed detached), however the market is never going to 'get me' until the bottom is reached, if I decide to stay here. Don't forget you have to earn £3 before tax for every £1 that needs to be paid off a mortgage. Just think how much you are saving right now.

oh i know what your saying ive been saying it myself.

but you cant even plan anything in the current state. one min your doing your calculations on one mortgage then it gets taken off the market.

the banks are now profiteering with zero risk. they are making tons with no exposure at all which isnt right. most people are being treated like sub prime when they arent.

Bf109

pandamonia wrote: »

All of britannia's 90% LTV have gone which were some of the best around.

Britannia is not a bank.

Trollfever

There are going to be thousands in good jobs

And millions unemployed. Watch the figures soar.

Bf109

pandamonia wrote: »

The Government keeps giving the banks money and none of it is getting down to the people who need it. they just pay themselves bonuses with it.

Britannia is not a bank.

The Government doesnt have any money. None. What you mean to say is that the Government keeps stealing money from taxpayers and giving it to some, but not all, banks.

Bf109

pandamonia wrote: »

the banks are now profiteering with zero risk. they are making tons with no exposure at all which isnt right. most people are being treated like sub prime when they arent.

Evidence of this?

Please show me which banks have made enormous profits out of taxpayers money in the last year.

Please also show which banks have a zero risk business model.

The current lending criteria is beggining to approach normality. They just need to get the income multiples under control again. Its not a question of sub prime. Its a question of responsible lending.