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

Really2

GDB2222 wrote: »

You are right, the previous link does not mention that. But this link does:
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/4995778/FSA-to-cap-mortgage-borrowing.html


"As part of a wide-ranging package of announcements for banking regulation following the near-collapse of the financial system, Lord Turner, chairman of the Financial Services Authority, will also declare a ban on 100 per cent mortgages.In all but the most exceptional circumstances, it will become "normal practice" again for loans to limited to a maximum of three times the borrower's salary.
And as part of their deal, prospective home owners will have to provide a deposit of at least 5 per cent - with many banks and building societies expected to ask for even larger amounts."

So larger deposit = greater multiple

Is this a big non-story

STOP PRESS- 100% FTB Mortgages at 5X Salary withdrawn from market!!!

They have not been available for the last 18 months!!!

mbga9pgf

Really2 wrote: »

So larger deposit = greater multiple

Is this a big non-story

STOP PRESS- 100% FTB Mortgages at 5X Salary withdrawn from market!!!

They have not been available for the last 18 months!!!

And do you want to remind us of what house prices have done in the last 18 months?

The important factor is this kills HPI outside of that directly linked to wage rises.

Which is a beautiful thing!

GDB2222

Really2 wrote: »

So larger deposit = greater multiple

Is this a big non-story

STOP PRESS- 100% FTB Mortgages at 5X Salary withdrawn from market!!!

They have not been available for the last 18 months!!!

The big story is limiting the multiple for a normal mortgage to three times salary. That is an enormous change. I do not think that a 5% deposit will make all that much difference. 25% would, but not 5%.

Reaper

I thoroughly approve of a x3 mortgage limit, despite the effect it would have on my house price.

However I think the Telegraph is indulging in guesswork. None of the other papers are putting a figure on it. The Financial Times says:

Later this year the regulator will issue proposals as part of a review of the mortgage market that could include restricting loans to an amount based on a specified ratio to a borrower’s income.

Notice terms like "proposal", "later this year" and "could". Don't get too excited yet, the Telegraph has leapt to a conclusion not justified by the facts.

Really2

mbga9pgf wrote: »

And do you want to remind us of what house prices have done in the last 18 months?

The important factor is this kills HPI outside of that directly linked to wage rises.

Which is a beautiful thing!

If you would want to add the rmoval of credit from the market to only the safest bets.

The article is talking about 3X Salary and 5%. That would be geting propertys sold in most areas.

4X and 10-25% would have houses flying.

Credit as been removed from all areas of lending not just mortgages.

Have we all forgoton what "credit crunch" actualy means?

mbga9pgf

Well, I have emailed all the other broadsheets with the article this morning seeing if they can confirm the story.

IN other words, juicy story that will drive down HPI for your front-page tomorrow.

IF it gets widespread coverage over the next few days, its a safe bet that there is no smoke without fire.

Really2

GDB2222 wrote: »

The big story is limiting the multiple for a normal mortgage to three times salary. That is an enormous change. I do not think that a 5% deposit will make all that much difference. 25% would, but not 5%.

Ok you seem to making 1+1 and making 20

It is saying the lower the deposit the lower the multiple

5% = 3X (if it ever happens)

Anything else would be considered for more, sorry that is just pre-04 mortgage market.

Really2

mbga9pgf wrote: »

Well, I have emailed all the other broadsheets with the article this morning seeing if they can confirm the story.

IN other words, juicy story that will drive down HPI for your front-page tomorrow.

IF it gets widespread coverage over the next few days, its a safe bet that there is no smoke without fire.

Excellent all news paper articles are true and law.

We are all saved.;)

mbga9pgf

Really2 wrote: »

If you would want to add the rmoval of credit from the market to only the safest bets.

The article is talking about 3X Salary and 5%. That would be geting propertys sold in most areas.

4X and 10-25% would have houses flying.

Credit as been removed from all areas of lending not just mortgages.

Have we all forgoton what "credit crunch" actualy means?

Well, yes, if you dont have a 30% deposit like me, it could be a problem!

mbga9pgf

Really2 wrote: »

Ok you seem to making 1+1 and making 20

It is saying the lower the deposit the lower the multiple

5% = 3X (if it ever happens)

Anything else would be considered for more, sorry that is just pre-04 mortgage market.

YEp, pre-04 prices here we come!