House prices down to at least 115K... Thans FSA! 3X here we come!

mbga9pgf

:beer:

http://www.propertyweek.com/story.asp?sectioncode=297&storycode=3136243&c=1

Home buyers will be prevented from borrowing more than three times their annual salaries under new mortgage rules to be announced this week.

As part of a wide-ranging package of measures for banking regulation, Lord Turner, the chairman of the Financial Services Authority, will also declare a ban on 100% mortgages.

In all but the most exceptional circumstances, it will become 'normal practice' for loans to be limited to a maximum of three times the borrower’s salary.

Prospective home owners will have to provide a deposit of at least 5%, with many banks and building societies expected to ask for even larger amounts.

The move is in response to Gordon Brown’s request last month that the FSA look into banning risky mortgage lending.

Taking the bulls imaginary average wage of 36K (Yeah, right....)
plus the 5% deposit, prices WILL crash to at least 115,000 average... this is before the effects of any recession (depression) are factored in.

:rotfl::rotfl::rotfl::rotfl::rotfl:

before we start to go on about the same stuff repeated THIS IS NEW!!!!!


Everyone dance along with bowie now...

http://www.youtube.com/watch?v=30AVhf-ZLwM

obsessed_saver

Unless they also reign in "self-certified", it's not going to matter whether it's 3x or 10x.

saveallmymoney

This seems like a very good idea, have they actually got the bottle to do it though?

lostinrates

Similarly, how this would work with rural property as those who are buying farms etc to farm/for income, are competing against those who want a nice house and to see a buisness rather than domestic mortgage offers greater borrow-ability? Lots of sale and lease back?

mbga9pgf

Business loan?

Who cares? HPI is dead!

Really2

When did that law come in?:rolleyes:

There is no way that will get the nod. Bear food yes, reality no.

I would say remove that picture, it is not apropriate for an open board.

mbga9pgf

Its on sky news now.

was sourced from the torygraph

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/4996674/Lord-Turner-to-unveil-banking-crackdown.html

Who says it needs the nod? The FSA are an independent entity. they regulate the market. Its coming in.

Really2

mbga9pgf wrote: »

Who says it needs the nod? The FSA are an independent entity. they regulate the market. Its coming in.

:rotfl: Yes they have done such a good job so far.

PS The telegraph link does not even mention that.:)

mbga9pgf

Better late than never. Important point is this is going to slaughter house prices.

Down until we get to 3x salary!!!!

macaque_2

In all but the most exceptional circumstances, it will become 'normal practice' for loans to be limited to a maximum of three times the borrower’s salary.

This policy effectivey caps property values at less than half of todays prices. People negotiating to buy at the moment might like to wave a copy of this article under the noses of house sellers. I suspect this will do wonders to lubricate negotiations.

mbga9pgf

Really2 wrote: »

PS The telegraph link does not even mention that.:)

Wait and see!