MSE News: Nationwide says house prices at 2008 levels

IveSeenTheLight

the_ash_and_the_oak wrote: »

I think 90% LTV coming back (a good thing) increases demand but the ones that have been shown here seemed to be around the 3.5x level. Think this is pretty good for everyone really. It should increase the demand but at a capped level.

Just checked the HSBC as they currently offer 5 year fixes from 4.95% on the amount (income multiple) they would provide.

https://hsss1.hsbc.co.uk/bankinguk/mortgageAIP/ourservice.jsp

I entered a joint application both on £30,000 and looking for a property valued at £400k.
HSBC came back saying they would lend £270k. This is 4.58 times the joint income.
It does seem for that ratio, they are looking at a 75% LTV maximum though.

the_ash_and_the_oak

The problem my parents have been finding is that they have had a huge amount of interest in their house and many offers over the last year (and at asking price) but that each person has had to sell somewhere first. This has yet to materialize. A sideways mover might have been ok but the majority were moving up the ladder and this seemed to be the problem.

Its off the market now (for this reason not because of lower IR - they've owned it for 24 years so obv doesnt matter about that)

the_ash_and_the_oak

IveSeenTheLight wrote: »

Just checked the HSBC as they currently offer 5 year fixes from 4.95% on the amount (income multiple) they would provide.

https://hsss1.hsbc.co.uk/bankinguk/mortgageAIP/ourservice.jsp

I entered a joint application both on £30,000 and looking for a property valued at £400k.
HSBC came back saying they would lend £270k. This is 4.58 times the joint income.
It does seem for that ratio, they are looking at a 75% LTV maximum though.

Yes I don't think the 75% and 60% LTV people have ever really had a problem! Its the multiple for 90% people that is more important imo

Generali

Really2 wrote: »

But the current rises are on lack of supply, how much more supply will we need for this to become neutral (no rises no falls).
With 90% LTV coming back it is going to add more demand again.

I really do feel we need to get some family homes built fast or we are going to be in this perpetual cycle forever and never reaching the goal of a stable affordable market.

Unfortunately the UK demand never seems to drop unless prices drop off a cliff.

I agree that building more houses would be sensible, especially in the towns and villages in the Green Belt around London and shift the Green Belt outwards.

90% mortgages and 100% mortgages are very different things. I don't know about in the UK but over here the banks are being very picky about credit quality and also about earnings ratios and affordability. I think it's those things, along with mass unemployment, that will put a big dent in demand.

Time will tell of course.

mitchaa

I posted this a few days back....

mitchaa wrote: »

Nationwide will report a 0.9% rise for Sept on friday. Was leaked yesterday

Do I win a prize

Really2

Generali wrote: »

I agree that building more houses would be sensible, especially in the towns and villages in the Green Belt around London and shift the Green Belt outwards.

90% mortgages and 100% mortgages are very different things. I don't know about in the UK but over here the banks are being very picky about credit quality and also about earnings ratios and affordability. I think it's those things, along with mass unemployment, that will put a big dent in demand.

Time will tell of course.

Don't forget we are all mad and for some reason all desperate to own in this country.:)

time will indeed tell, but I honestly thought unemployment and repos were going to drive down the market this year.

I am going back to a dart board method.
I think with all this is keep an eye on the ball and react when you can. I have learnt to my benefit this year the buying part is the small part. Making the finance cheap and repayment quick is the best way of reducing the TCO.

Really2

mitchaa wrote: »

I posted this a few days back....



Do I win a prize

A Day arguing with GD. congratulations.

chucky

Cleaver wrote: »

Monthly data is just noise.

Wait for the unemployment figures to hit.

It's going to be a long, hard winter.

I only look at Land Registry stats.

This is a sign that the housing market is back to normal. Get in now before it's too late.

You bears have missed the boat.

You can't compare anything at this level of transactions.

Wait until interest rates rise.

Etc. Etc. Etc.

I'm still sticking my complex, financial theory that people love houses, they are still a bit cheaper now than they have been for a while, hence these rises.

this is just another nail in the HPC coffin

the_ash_and_the_oak

chucky wrote: »

this is just another nail in the HPC coffin

You can't put a price on being able to hang pets on your own walls

chucky

the_ash_and_the_oak wrote: »

You can't put a price on being able to hang pets on your own walls

i've got more than a few bear heads on mine - they're not the brightest creatures, very one dimensional :rolleyes: