And So It Begins.... High LTV lending to return

HAMISH_MCTAVISH

Yakubu22 wrote: »

Well that isnt sustainable. If prices rise so much that only an elite band of people can afford to buy, population (and skilled labour) will move away.

Then build more houses, because unless you do, it's inevitable.

Trying to limit HPI through artificial price controls or lending limits will never work. The rich, or couples, can always outbid the average single person. And with only 30% of houses being built as need to be, there will always be competition for them.

The only way to lower prices is to massively increase supply of houses.

HAMISH_MCTAVISH

mbga9pgf wrote: »

Your article is complete crap hamish and you know it.

Oh dear, somebody is getting worried....:rotfl:

No way will the Mortgage companies allow this to happen and if it goes ahead, they will do their upmost to stop it. It is complete lunacy.

Why on earth do you think they would stop it?

They are already lending at higher LTV's.... They are just charging more as every time they do, they have to leave more money on reserve.

PasturesNew

Graham_Devon wrote: »

The key, however, is unfortunately, these friends grandparents had died, so I guess the houses passed down to their parents allowed this to happen.

Ah, inheritance. We didn't have those in our family. One set were in a council house and poor as church mice; other set died 25 years apart and any money went in care home fees, in fact the family were paying those at the end as the money had run out.

I'd not thought about inheritance. I know one person who is about to inherit something from her husband's parents, not ever known anybody with an inheritance before now. I'd have never thought of that.

Yakubu22

HAMISH_MCTAVISH wrote: »

Then build more houses, because unless you do, it's inevitable.

Trying to limit HPI through artificial price controls or lending limits will never work. The rich, or couples, can always outbid the average single person. And with only 30% of houses being built as need to be, there will always be competition for them.

The only way to lower prices is to massively increase supply of houses.

I understand the nature of supply and demand. However using your theory there must be a saturation point. Where conditions for the majority begin to become undesirable. Who will eventually seek other places/countries to settle and buy. Thereby decreasing demand

PasturesNew

mewbie wrote: »

I didn't have any help. However I will probably be expected to cough up when required.

DAD!!!!

I'm available for adoption. Sealed bids though.

ginandtonic1988

Can't see it happening as soon as I spot an amount of money on a clients bank statement that looks like a loan or the money has originated from a loan its reported to Lender. The Lenders are scrutinising everything with a fine tooth coomb at present.

mbga9pgf

HAMISH_MCTAVISH wrote: »

Oh dear, somebody is getting worried....:rotfl:



Why on earth do you think they would stop it?

They are already lending at higher LTV's.... They are just charging more as every time they do, they have to leave more money on reserve.

Watch this space hamish. The FSA havent ruled out market controls yet, and your bacon is cooked as soon as a 3.5 -4 X limit on mortgages is established.

If this is such a good idea, why are the big banks not going along and lending at the 5-10% deposit level? Because they know its madness.

Another thing, the lending company wont get a penny when individuals get reposessed, not a penny, as it will be an unsecured loan and thus they have no right to any part of the house. The only way they can get a charging order on the property is if they are able to get the mortgage lender to agree and that isnt going to happen. Ever.

HAMISH_MCTAVISH

Yakubu22 wrote: »

I understand the nature of supply and demand. However using your theory there must be a saturation point. Where conditions for the majority begin to become undesirable. Who will eventually seek other places/countries to settle and buy. Thereby decreasing demand

Houses are already far cheaper elsewhere in the world.

And yet UK population grew by 408,000 people last year.

There is an upper limit to house prices though..... That point is reached when the cost of a house exceeds the cost of 60 years rent. Or about 300% of todays prices.

HAMISH_MCTAVISH

mbga9pgf wrote: »

If this is such a good idea, why are the big banks not going along and lending at the 5-10% deposit level? Because they know its madness.
.

Untrue. They are lending at 90% LTV today. They just charge more because they have to hold a higher proportion of capital on reserve.

The number of 90% LTV mortgage products available has risen substantially in the last 6 months.

The return of competition to the lending market, and increase of funding available, is slowly but surely raising availability of high LTV mortgages.

System

I had my solicitors fee paid for me by pop. Saved the £12k deposit myself though.

Of all my friends, I think they've all had help from parents.