Availability of Credit or are We just Skint?

the_ash_and_the_oak

Then it really becomes a question not of if ftbs are ABLE to save, but if they ARE saving, and if sufficient numbers of them have 10% of whatever the average price of a first rung property is. I was under the impression that savings rates towards the end of the bubble at least were at all time lows. Perhaps this is changing. I'm not convinced but I could be persuaded otherwise

mbga9pgf

If every FTB is saving for a 20% deposit, its going to have a pretty profound impact on the UK drinks/retail industry no doubt!

Reverse leverage, dont you just luurve it!

Thrugelmir

the_ash_and_the_oak wrote: »

Then it really becomes a question not of if ftbs are ABLE to save, but if they ARE saving, and if sufficient numbers of them have 10% of whatever the average price of a first rung property is. I was under the impression that savings rates towards the end of the bubble at least were at all time lows. Perhaps this is changing. I'm not convinced but I could be persuaded otherwise

If FTB's don't save. Then the demand won't be there to support the bottom rungs of the ladder. So property prices will fall. This then might be the encouragement and incentive too save. As the objective will become achievable for those they choose to do so.

The property market is going through a profound change in the next 5 years!

the_ash_and_the_oak

Thrugelmir wrote: »

If FTB's don't save. Then the demand won't be there to support the bottom rungs of the ladder. So property prices will fall. This then might be the encouragement and incentive too save. As the objective will become achievable for those they choose to do so.

The property market is going through a profound change in the next 5 years!

sometimes I wonder - its almost as if the banks policies during the later years of the booms were partly designed to factor in a much lower level of saving by prospective ftbs as general savings levels continued to fall

izzybusy23

Dan: wrote: »

Some of us like to have a life.

Don't normally agree with you, but do on this case!

Thrugelmir

the_ash_and_the_oak wrote: »

sometimes I wonder - its almost as if the banks policies during the later years of the booms were partly designed to factor in a much lower level of saving by prospective ftbs as general savings levels continued to fall

.

All the banks that hit the wall were reliant on wholesale funds rather than retail. When wholesale funds ran out, the banks could no longer had funds to lend.

the_ash_and_the_oak

true - but I meant more the lowering and eventual removal of requirement for deposits for borrowers (to compensate for insufficient numbers of borrowers with necessary deposits due to lower saving)

Thrugelmir

the_ash_and_the_oak wrote: »

true - but I meant more the lowering and eventual removal of requirement for deposits for borrowers (to compensate for insufficient numbers of borrowers with necessary deposits due to lower saving)

Yes totally agree. The lending by NR, Lehmans and GMAC was subprime at the peak of the boom. Forget deposits even proving an ability to repay a mortgage!