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Debate House Prices
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Availability of Credit or are We just Skint?
Comments
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Thrugelmir wrote: »You, I and our neighbours in our streets need to save the 90% to fund the mortgage.
Thats where the money comes from.
We dont save. Theres no money to lend.
Whether people can afford it doesnt matter. By everybody saving for bigger deposits. Then the system of mortgage funding becomes sustainable. The principle that Building Societies were built on.
Maybe they can lend some of the money that was printed out of thin air.0 -
mr.broderick wrote: »Maybe they can lend some of the money that was printed out of thin air.
The oxygen boost is only temporary. Once plant life resumes growth and green shoots appear. The oxygen will be sucked from the atmosphere. So won't be around for the 25 years that is required for the plants to reach maturity. Stunting growth.0 -
Its complicated alright.
Does this mean we will have a mini boom in 12-18 months though? More people are overpaying their mortgages inlight of the interest rate drop and theres bound to be a decent amount of FTBs knuckling down to bigger deposits.
Im not saying its going to happen over night but a guy can have dreams right?0 -
Its complicated alright.
Does this mean we will have a mini boom in 12-18 months though? More people are overpaying their mortgages inlight of the interest rate drop and theres bound to be a decent amount of FTBs knuckling down to bigger deposits.
Im not saying its going to happen over night but a guy can have dreams right?
Quick answer is no.
The overpayments aren't all flowing back into the UK banks.
NR, B&B, HBOS and RBS ( to name a few) used securisation to fund their mortgage lending. In simple terms they sold their mortgages on, in the main to overseas investors.
So the mortgage repayments you are making isnt going to HBOS for eg. Its being passed on more than likely to somewhere in Asia. As they hold your mortgage debt even though you dont realise it. HBOS just manages it.
Sorry to deflate your balloon. But the situation is far more complex than what you'd expect.
It will take some years for repayments to have a major impact on funding levels. Maybe 10 or so.0 -
Thrugelmir wrote: »You, I and our neighbours in our streets need to save the 90% to fund the mortgage.
Thats where the money comes from.
We dont save. Theres no money to lend.
Whether people can afford it doesnt matter. By everybody saving for bigger deposits. Then the system of mortgage funding becomes sustainable. The principle that Building Societies were built on.
When have banks had to capitalize 100% of loans with savings, we do not have to save 90%. You and the banks are adopting an over cautious attitude along with the rest of the sheep and the FTB's are being punished for it!
Surely I am not suggesting that these big institutions are adopting the wrong business model??? that would never happen!
FTB's were always allowed a bit of room when comes to their deposit as the banks knew they were just starting out and by securing the business now they could make loads of extra cash out of them throughout other moves and their life in general. What the banks, the Daily mail readers and the rest of the "we are doomed crowd" are advocating is very unhelpful to FTB's, they are punishing the wrong people as the real culprits they cannot get off their yachts in the Bahamas!!!.0 -
Is it the mortgage lenders fault for being so strict these days or are we all too skint to trade up anyway?
What was once 150K in 2008 is now £120K. But why cant those who bought their propertys pre 2007/2006 not afford to trade up? Surely theres a generation of buyers from 2000-2005 that will still have made a few bob on their places as well as accumulated equity. Arent they looking at the bargains right now?
I'm sure you have noticed the unemployment figures.
If you are unemployed or have risk of unemployment you are not going to trade up.
The only people I personally know not worried about their jobs with this current government work in the public sector.
And only 2 of those I know have "traded up" the others have had no reason to get a bigger property as they don't need or want one.I'm not cynical I'm realistic
(If a link I give opens pop ups I won't know I don't use windows)0 -
When have banks had to capitalize 100% of loans with savings, we do not have to save 90%. You and the banks are adopting an over cautious attitude along with the rest of the sheep and the FTB's are being punished for it!
Surely I am not suggesting that these big institutions are adopting the wrong business model??? that would never happen!
FTB's were always allowed a bit of room when comes to their deposit as the banks knew they were just starting out and by securing the business now they could make loads of extra cash out of them throughout other moves and their life in general. What the banks, the Daily mail readers and the rest of the "we are doomed crowd" are advocating is very unhelpful to FTB's, they are punishing the wrong people as the real culprits they cannot get off their yachts in the Bahamas!!!.
Read the real facts of the financial meltdown. The credit illusion.
Building societies are currently suffering net withdrawals of savings.
Thats why 90% mortgages are beyond a point unsustainable. You want a house save for it. Just like people have before you.
Or is your point that house prices are too high pushing them of reach? Thats a different issue.0 -
Thrugelmir wrote: »Read the real facts of the financial meltdown. The credit illusion.
Building societies are currently suffering net withdrawals of savings.
Thats why 90% mortgages are beyond a point unsustainable. You want a house save for it. Just like people have before you.
Or is your point that house prices are too high pushing them of reach? Thats a different issue.
No my point is that deposit is not the be all and end all! mortgages should be based on affordabilty if the guy is only buying a 70k house and his affordabilty is ok then the banks should stop following equally stupid business models and lend to these people. If he wants 200K then by all means 50k deposit would be reasonable.
I really do not know where you are going with this pious attitude that in order to buy a home you should be first made to prove that you can save therefore must be responsible!
But you seem to agree with what the banks are doing and as we all know the guys at the banks never get it wrong do they?0 -
Graham_Devon wrote: »I very highly doubt 10k is just another year saving on 23k.
How is the person supposed to live while they save more than half their take home pay!?
Last month I saved 90% of our joint salary after rent payments.
Its called making sacrifices.0
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