What is worse than a 3x cap on borrowing? The FSA of course

michaels

Some would argue a 3x salary cap on borrowing is a good idea

Others would say the proportion of income that someone spends on housing is their business not the states

Hopefully all would agree that rather than announcing a decsion on this, announcing that a consultation period will start in a few months time is probably the worst thing that could happen to the housing market. Look what happened last year when the Govt floated the idea of a stamp duty change but did not announce the details, the market froze overnight.

This change could potentially impact house prices much more if it happens so who in their right mind would make a house purchase decsion with this hanging over the market? (And which lender would lend more than about 50% LTV on what may soon be highly devalued property)

The Govt/FSA really just do not get it...

Really2

I thought it was fairly clear they will not set a 3X multiple if any.

They will not even stop 100% mortgages.

The banks have already adjusted what is there to change at the moment.

I cant see it having any effect as everyone know in reality they will do nothing. They will stop 5X and 6X but they will not limit to 3X or they would have done it already.

ad9898_3

michaels wrote: »

who in their right mind would make a house purchase decsion with this hanging over the market? (And which lender would lend more than about 50% LTV on what may soon be highly devalued property)

The Govt/FSA really just do not get it...

Who in their right mind would buy now anyway ??, and I say that as a person who has a close relative that picks the keys up for a house on Friday that they think they had a good deal on, wait for it..... 6% off 2007 peak. I guess some people don't read the papers/watch the news/read websites like this one.

I did try to tell him but I was banging my head against a brick wall, oh well you live and learn I guess.

chewmylegoff

so damned if they don't regulate, and damned if they do.

probably should just let the general public get on with it and borrow whatever they like.

what could possibly go wrong.

Really2

ad9898 wrote: »

I say that as a person who has a close relative that picks the keys up for a house on Friday that they think they had a good deal on, wait for it..... 6% off 2007 peak.

Oh yea is this like going to the doctors and saying "by the way my friend as a problem with his [cough]"

You have purchased, you can tell us we are all friends really.:D

Graham_Devon

Why would they hold off buying now, if they think they will be restricted in a few months time?

Surely "now is the time to buy" in this sense only, i.e. if you need to borrow 4x your income to afford the house you want.

I dunno who would buy now anyway, unless they HAD to.

Unless you are talking from a view that the 3x regulation if done, would crash prices beyond anything we have ever seen? So this will make people wait for the crash?

ad9898_3

Really2 wrote: »

Oh yea is this like going to the doctors and saying "by the way my friend as a problem with his [cough]"

You have purchased, you can tell us we are all friends really.:D

:rotfl:, ok I admit it, someone did a lobotomy on me while I was asleep, I got up the next day and signed. I even have a framed and signed picture of Phil & Kirstie on the mantlepiece, prices only ever go up.... ooooo...errrrr... looks like the lobotomy took away my memory for the last 2 years as well.:D

Really2

chewmylegoff wrote: »

so damned if they don't regulate, and damned if they do.

probably should just let the general public get on with it and borrow whatever they like.

what could possibly go wrong.

To me regulate means adjust to run evenly.
They have showed pre-bust and post-bust they are fairly inept at both if they leak ideas like 3x salary.

Kenny4315

Lord Turnip, Mr Clown & Hs Darling et al, couldn't even run a bath never mind an economy and banking system. They should be shot at dawn....

ad9898_3

Kenny4315 wrote: »

Lord Turnip, Mr Clown & Hs Darling et al, couldn't even run a bath never mind an economy and banking system. They should be shot at dawn....

Now that's the kind of talk we need , although I don't think Darling is a bad bloke, Clown on the other hand, well he should rail gunned.*



* For the uninitiated, a Rail Gun fires depleted uranium shells and is most commonly found in computer games like Quake.:D

JonnyBravo

ad9898 wrote: »

Clown on the other hand, well he should rail gunned.*



* For the uninitiated, a Rail Gun fires depleted uranium shells and is most commonly found in computer games like Quake.:D

What with this and your avatar I sense a lot of anger in you ad.

Relax a little. Have a drink. Deep breaths. there..... that's better.





(Incidentally I whole heartedly agree with you.)