HSBC calls end of crash, increases 90% mortgage funding

Really2

the_ash_and_the_oak wrote: »

Then this is a slightly different argument. But as long as 3.5x at 90% is what they are offering then the amount drops from 180 to 126. If you are right that others will follow with higher multiples then surely your argument is that this lower figure is temporary (but that it is current)

Could be but £126K will actually buy you a house in a lot of the country.

It's not only offered to the SE.

It will be relevent to those who will have a 10% deposit and who can afford a house in the area they want. It is only £500M, as I said it will be £500M of the best customers.

It will let those who can buy a property at 3.5X salary purchase. If it was not available they could not earlier this year.

Really2

the_ash_and_the_oak wrote: »

I guess it does depend kinda where the unemployment falls - if it falls entirely on people who are not in the FTB pool then it won't reduce that pool. But if it does fall on people in that pool - imo it removes them from that pool right then (nothing to say they won't return to the pool at a later date)

It will reduce the pool but if the over demand is bigger than the pool of unemployed it will have no effect on the market.

Perhaps a better way to look at is if you could explain why prices have risen along with unemployment. (they should have dropped because the pool as shrunk, yes ?)

the_ash_and_the_oak

Really2 wrote: »

Could be but £126K will actually buy you a house in a lot of the country.

It's not only offered to the SE.

It will be relevent to those who will have a 10% deposit and who can afford a house in the area they want. It is only £500M, as I said it will be £500M of the best customers.

It will let those who can buy a property at 3.5X salary purchase. If it was not available they could not earlier this year.

totally agree that a 40k salary goes a lot further in the country than in London imo

the_ash_and_the_oak

Really2 wrote: »

It will reduce the pool but if the over demand is bigger than the pool of unemployed it will have no effect on the market.

Perhaps a better way to look at is if you could explain why prices have risen along with unemployment. (they should have dropped because the pool as shrunk, yes ?)

Well I think unemployment is kinda overstated (esp when number of buyers and sellers are so low)

nearlynew

Really2 wrote: »

IF you are unemployed buying a house is never very realistic.

It was 3 years ago.

Pete111

the_ash_and_the_oak wrote: »

totally agree that a 40k salary goes a lot further in the country than in London imo

Indeed....

....but it's also true that 40k+ salarys are not uncommon in London/SE and joint incomes of 60k+ are quite usual amongst white collar workers (of which London/SE still has many - despite the recession) in their late 20's early 30's.

Suspect London and the SE housing will fare best rather than the other way round - it's also the most densely populated part of the UK

...at least that is my fervent hope!

chucky

Pete111 wrote: »

Indeed....

....but it's also true that 40k+ salarys are not uncommon in London/SE and joint incomes of 60k+ are quite usual amongst white collar workers (of which London/SE still has many - despite the recession) in their late 20's early 30's.

Suspect London and the SE housing will fare best rather than the other way round - it's also the most densely populated part of the UK

...at least that is my fervent hope!

you're right London YOY is somewhere around 5% down - it would compare much better to many other areas

Thrugelmir

StevieJ wrote: »

The Chinese have already started to dip a toe in the water.

A toe is someway from being an entire body.

Thrugelmir

chucky wrote: »

that sounds pretty good for an FTB... why didn't you do it on joint income :rolleyes:

how about

on a two £40k salary at just 3 times salary at 90% LTV = £240 plus a 10% deposit = property around £264k on 90% mortgage...

and when you talk about an FTB... will they be buying an average house?
you seem to be comparing and FTB with average house prices.
an FTB is not an average home buyer...

you're comparing oranges and apples... that isn't a very realistic or even balanced viewpoint :rolleyes:

Oh Mr C what total rubbish. The average UK salary is only £25k. So your example of 2 FTB's earning a joint £80k is pushing the boundaries somewhat. Visit the provinces once in a while. London and the South East will not remain immune.

Even for BTL bulls, heralding 90% loans on reduced income multiples is utter nonsense. As which ever way you address the point. Banks are finding ways of lending less. They have too.

And as an aside these HSBC mortgages will be on a repayment rather interest only basis.

The property iceberg is melting. As you know only 10% of an iceberg is visible above the water. What you need to realise is the bottom is being melted very quickly. The banks are quietly and effectively capping lending and putting it back onto a stable basis.

the_ash_and_the_oak

Pete111 wrote: »

Indeed....

....but it's also true that 40k+ salarys are not uncommon in London/SE and joint incomes of 60k+ are quite usual amongst white collar workers (of which London/SE still has many - despite the recession) in their late 20's early 30's.

Suspect London and the SE housing will fare best rather than the other way round - it's also the most densely populated part of the UK

...at least that is my fervent hope!

there are definitely places in the 3.5x salary w 10% deposit in London for the 40kers if they want to buy

http://www.rightmove.co.uk/property-for-sale/find.html?searchType=SALE&locationIdentifier=REGION^85199&radius=0.0&displayPropertyType=&minBedrooms=&maxBedrooms=&minPrice=&maxPrice=160000&maxDaysSinceAdded=&retirement=&partBuyPartRent=&_includeSSTC=on&x=58&y=12&sortByPriceDescending=&primaryDisplayPropertyType=&secondaryDisplayPropertyType=&oldDisplayPropertyType=&oldPrimaryDisplayPropertyType=&oldSecondaryDisplayPropertyType=&newHome=&auction=false