Proposed mortgage cap 'suicidal' say 'property experts'

chewmylegoff

Kenny4315 wrote: »

the deposits where released from know doubt sales of houses that were going up in value ?????

What's your estimate of the average house price if a 3 times salary cap were strictly imposed. With average salaries likely to be somewhere in the region of £25k nationwide ?

around £150k i suppose.

the average salary of a homebuyer, and the average national salary are not the same thing at all, and never have been.

Kenny4315

chewmylegoff wrote: »

i am an ACA. i work in banking.

isn't it irritating when you have to explain how bad debt provisions work in your industry sector, and the person to whom your explaining them just doesn't get it.

still, practice what you preach eh.

Is this the industry sector that did not provide adequate provisions for bad debt in the first place, obviously did not scrutinise its investment risks, and can't tell who has the toxic debt and how much it is, and suddenly businesses that were blue chip, and in solid health, where scr3wed in the matter of a few months. Thus had to come cap in hand to the government , when all of the sudden, there finances collasped, for multi-billion guarantees, etc.

I'd hardly be chirping about the quality of my control practices if I were an ACA in banking given the mess the UK is in, it is obvious that they are CR&P.

Maybe you should have said something at a meeting a few years ago and suggested that there are a few problems with the estimating of provisions, then there would not be suddenly billions of write-down all of a sudden.

Or maybe someone should have analysed to investements and cottoned on the 3 piles of sub-prime sh8te is not triple A, it's one pile big pile of SH8TE. I hardly think that you can say that banks accounts have been true and fair in recent years, when local councils are taking them to court for misleading them, etc, etc, etc.

Kenny4315

chewmylegoff wrote: »

around £150k i suppose.

the average salary of a homebuyer, and the average national salary are not the same thing at all, and never have been.

R u seriously suggesting average prices will drop to £150k from there peak ?

There's plenty of pensioner who buy houses on alot less the £25k. So lets use £25k as a rule of thumb.

Entertainer

However, the suggestions in the forthcoming Turner Review have alarmed leading estate agents and mortgage brokers

Some objective opinion there.

Kenny4315

UK HOUSE PRICES FEB 2009
ANNUAL CHANGE -17.7%
MONTHLY CHANGE -2.3%

AVERAGE PRICE £160,327

Lloyds banking group

So only another £10k to come off then even with a 3 times cap. We are obviously talking about house prices on a different planet. I was talking about the united kingdom, .... on planet EARTH ... ring any bells.

That's without salary caps of 3 X.

dopester

There are 3 qualified accountants disagreeing with each other in this thread, and for some reason I find that very amusing. :rotfl:

dopester

chewmylegoff wrote: »

around £150k i suppose.

the average salary of a homebuyer, and the average national salary are not the same thing at all, and never have been.

They are around that level already (average house prices) aren't they?

Halifax = £160,327

Nationwide = £147,746

chewmylegoff

Kenny4315 wrote: »

Is this the industry sector that did not provide adequate provisions for bad debt in the first place, obviously did not scrutinise its investment risks, and can't tell who has the toxic debt and how much it is, and suddenly businesses that were blue chip, and in solid health, where scr3wed in the matter of a few months. Thus had to come cap in hand to the government , when all of the sudden, there finances collasped, for multi-billion guarantees, etc.

I'd hardly be chirping about the quality of my control practices if I were an ACA in banking given the mess the UK is in, it is obvious that they are CR&P.

Maybe you should have said something at a meeting a few years ago and suggested that there are a few problems with the estimating of provisions, then there would not be suddenly billions of write-down all of a sudden.

Or maybe someone should have analysed to investements and cottoned on the 3 piles of sub-prime sh8te is not triple A, it's one pile big pile of SH8TE. I hardly think that you can say that banks accounts have been true and fair in recent years, when local councils are taking them to court for misleading them, etc, etc, etc.

i wasn't boasting about my "control practices", i was simply saying that i know how to calculate a bad debt provision against a mortgage book. you do not.

further, the issues in the banking sector, as any fule kno, were not born out of an inability to correctly provision against bad debt on retail banking assets. i have already referred to the difference between what we are talking about and write-downs on mortgage backed securities, so no point repeating myself. i should probably make some knowing comment about the the relative quality of management accounting qualifications at this point, just to keep up with your theme of lowering the tone.

chewmylegoff

dopester wrote: »

They are around that level already (average house prices) aren't they?

Halifax = £160,327

Nationwide = £147,746

i thought we were at about £180k per land registry.

chewmylegoff

Kenny4315 wrote: »

There's plenty of pensioner who buy houses on alot less the £25k. So lets use £25k as a rule of thumb.

ok, well that's scientific isn't it. is that how you do the bad debt provisioning round your way?