Why house prices aint rising anytime soon

chucky

Cat695 wrote: »

This means borrowers who have no equity – or even owe more than the value of their home – are qualifying for loans aimed at customers with deposits of at least 5 per cent.

QUOTE]


So what you are saying is the banks are going to start lending again at 100% + ??

erm didn't we get into this trouble because of that??

yep - something like that. logical or not - it's going to happen and going to continue happening.

many people may not agree with it or believe it however but it will happen.

Cat695

chucky wrote: »

Cat695 wrote: »

yep - something like that. logical or not - it's going to happen and going to continue happening. many people may not agree with it or believe it however but it will happen.

Jesus this country is a joke.....so all that will happen is that we will end up in trouble AGAIN just sooner.

Graham_Devon

Cat695 wrote: »

chucky wrote: »

Jesus this country is a joke.....so all that will happen is that we will end up in trouble AGAIN just sooner.

No surprise that its halifax and lloyds.

Going to be a political thing. Won't help many at all though. Wont help people move and wont help people onto the market. Will simply mean someone has to have 5% available to put into negative equity to get a marginally lower rate maybe of currently 5%+ with most likely, a hefty arrangement fee attached.

Not something I would be entering in to!

Dan:_4

Towards the end of the 90s crash lenders started to allow re-mortgages (only for existing customers) for people in negative equity. You had to have a good history with them and never missed a payment but its a pretty good scheme for these customers to avoid the uncertainly of the SVR.

I said months ago that this would start to happen, and I expect to see other lenders to follow.

dervish

chucky wrote: »

i don't really classify my self as a bull but i'll have a go Graham and say from the start that average prices have another 10% to 15% to drop. i don't go for the 50% from peak that AD says - not across the country anyway.

in saying that, there will be some areas that will be flattening out or increasing over the spring already. however, there will be areas like Northern Ireland, Wales and maybe the North East or the South West that will be hit most, with respect to everyone that lives there . these are where the biggest bubbles were in my view. these are the ones that will struggle the most to cope with all of your points above.

other areas will be less impacted by what you are saying and house prices will not be affected as much.

this is perhaps the WOSRT EVER POST I have ever read on this website.

It is a load of rubbish., :mad:

ad9898_3

Dan: wrote: »

Towards the end of the 90s crash lenders started to allow re-mortgages (only for existing customers) for people in negative equity. You had to have a good history with them and never missed a payment but its a pretty good scheme for these customers to avoid the uncertainly of the SVR.

I said months ago that this would start to happen, and I expect to see other lenders to follow.

I would imagine it's being offered now to stop the repo avalanche when the base rate goes up, which is fair enough, I want to buy a house as cheaply as possible but not at the expense of thousands of people that just bought at the wrong time, and that's all it's designed to do, as it won't necessarily impact on price falls anyway.

Dan:_4

ad9898 wrote: »

I would imagine it's being offered now to stop the repo avalanche when the base rate goes up, which is fair enough, I want to buy a house as cheaply as possible but not at the expense of thousands of people that just bought at the wrong time, and that's all it's designed to do, as it won't necessarily impact on price falls anyway.

absoletley spot on.

matbe

dervish wrote: »

this is perhaps the WOSRT EVER POST I have ever read on this website.

It is a load of rubbish., :mad:

I dont know some of yours are absolute nonsense and you come across as a complete racist.

This is from someone who's views are slightly left of Adolf.

God knows what the bleeding heart lefties think of you?

Dan:_4

dervish wrote: »

this is perhaps the WOSRT EVER POST I have ever read on this website.

It is a load of rubbish., :mad:

would you care to explain?

and what about your rubbish posts, infact i've never seen a decent post by you?

StevieJ

ad9898 wrote: »

The first thing the bulls will say is that, 2 people buy houses these days so it should be 3.5x both, thats 3.5x 25k +10% gives about 190k...... so their you go.:beer:

However I don't suscribe to this fantasy, huge swathes of the country have nowhere near a 50k household income, another factor is what are the chances of the couple who buy the house together at 3.5x joint salary avoiding illness, accident, unemployment, pregnancy, children or even death etc.... for the 25 year life of the mortgage 0%, I would probably say, so that mortgage turns into a 7x single at that point, not good news.

I agree with your summary Graham, and when it's all laid out like that, 50% falls from peak almost seem like a forgone conclusion by 2013-14. <puts on flame suit>:D, after all we had 200-300% inflation over the decade from 97-07, so what goes up, can come down by the same amount.

Ramp, Ramp, Ramp