Things getting worse?

pandamonia

Bf109 wrote: »

Britannia is not a bank.

so what?

im not talking about them being forced to lend im talking the ones that have had help.

its shameful that the best ones on the market were from a building society.

now they are disappearing too

pandamonia

Bf109 wrote: »

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.

How about the £1500 fees on some mortgages? the rates at 5-7 times the baserate. 40% deposit required. This amounts to profiteering.

im not talking about money from taxpayers im talking in general.

the market cannot be sustained for prolonged periods of this criteria.

people with 40% deposit will have their equity eroded to nothing because banks are being over protective now.

ad9898_3

pandamonia wrote: »

so what?

im not talking about them being forced to lend im talking the ones that have had help.

I as a taxpayer, would hope that the banks that have been given taxpayer money would have a good business model and only lend to people who are of a good risk (which means nobody with less than 25% deposit), in the hope that I, as a taxpayer will get my money back.

ad9898_3

pandamonia wrote: »

How about the £1500 fees on some mortgages? the rates at 5-7 times the baserate. 40% deposit required. This amounts to profiteering.

I know you wouldn't believe it at the moment but banks have responsibilites to savers as well as borrowers, thats why the BoE reducing base rates to near 0% is an exercise in futility. The banks won't/can't pass these kind of cuts on.

pandamonia

ad9898 wrote: »

I as a taxpayer, would hope that the banks that have been given taxpayer money would have a good business model and only lend to people who are of a good risk (which means nobody with less than 25% deposit), in the hope that I, as a taxpayer will get my money back.

what you fail to understand is that this market is built on people with 10% deposit. a sudden shift to 25% will cause a lack of buyers and prolonged period of sustained falling prices.

imagine a 22yo who needs to start saving. they will be forced to save for 2-3 times as long causing a lack of buyers. so prices will have to fall to reflect the lack of new buyers

pandamonia

ad9898 wrote: »

I know you wouldn't believe it at the moment but banks have responsibilites to savers as well as borrowers, thats why the BoE reducing base rates to near 0% is an exercise in futility. The banks won't/can't pass these kind of cuts on.

savings rates dont reflect the market any way, they reduce the rates for savers to increase their margins.

go check ISA rates.

mower5

pandamonia wrote: »

what you fail to understand is that this market is built on people with 10% deposit. a sudden shift to 25% will cause a lack of buyers and prolonged period of sustained falling prices.

imagine a 22yo who needs to start saving. they will be forced to save for 2-3 times as long causing a lack of buyers. so prices will have to fall to reflect the lack of new buyers

and what's the problem with that?

pandamonia

mower5 wrote: »

and what's the problem with that?

well its good for me looking to buy "eventually" but the majority are home owners and they wont be happy with their home losing 50% of its value.

bankruptcies will rocket and the economy will get worse.

ad9898_3

pandamonia wrote: »

what you fail to understand is that this market is built on people with 10% deposit. a sudden shift to 25% will cause a lack of buyers and prolonged period of sustained falling prices.

I understand it perfectly, the result is excellent.

pandamonia

ad9898 wrote: »

I understand it perfectly, the result is excellent.

im in the same boat as you so i like it too but its the negative effects that get handed down the line which can still hurt everyone.