which party protected our homes more in recession?

MissMoneypenny

ninky wrote: »

presumably they could afford the mortgage when they took it out otherwise they wouldn't have got it.

That wasn't how mortgages were working for the last few years. People have been able to lie to buy and/or have taken out interest only mortgages with no repayment vehicle in place.

There were plenty of warnings about "can you afford this mortgage if the interest rate goes to 12%" but some stuck their heads in the financial sand.

chucky

Kohoutek wrote: »

I'm just asking people to apply common sense, which you and others are incapable of doing.

why do you think you are correct and the one applying common sense Mr Coconut?
are other peoples views not common sense and only yours are common sense

take those blinkers off before you get run over crossing the road

Kohoutek

chucky wrote: »

why do you think you are correct and the one applying common sense Mr Coconut?
are other peoples views not common sense and only yours are common sense

take those blinkers off before you get run over crossing the road

All I'm saying is that lenders repaying £300 billion to the government, higher interest rates and the end of QE, two to three years down the line is not going to be positive for the housing market.

You can call that blinkered, I'll call it common sense.

I'm only repeating what the Council of Mortgage Lender's most recent report says (someone posted it a while ago).

I guess you know better than them.

Dan:_4

The_White_Horse wrote: »

they are under Labour whose idea of fairness is not to give everyone the same chance, but simply to take from those who have to give to those who have not. That is not fairness at all.

lifes not fair mate.

MissMoneypenny

Dan: wrote: »

lifes not fair mate.

Try telling that to those that are going to lose their house.

chucky

Kohoutek wrote: »

All I'm saying is that lenders repaying £300 billion to the government, higher interest rates and the end of QE, two to three years down the line is not going to be positive for the housing market.

You can call that blinkered, I'll call it common sense.

I'm only repeating what the Council of Mortgage Lender's most recent report says (someone posted it a while ago).

I guess you know better than them.

lol - no. but what i do know is that whatever government comes into power they're not going to be putting the country back into recession or forcing house prices downwards.before it happens the issue will be solved by the CML.

do you really think that they will allow this to happen?

Dan:_4

MissMoneypenny wrote: »

Try telling that to those that are going to lose their house.

This is far worse then the poster above moaning about his savings taking a hit due to current interest rates.

MissMoneypenny

chucky wrote: »

lol or forcing house prices downwards.

Forcing house prices downwards??? In the previous busts, nobody forced house prices down.

Graham_Devon

No one will force house prices down.

That doesn't mean that house prices will not be naturally pulled down by economic conditions without stimulus. Hecne the very reason of stimulus.

Kohoutek

chucky wrote: »

lol - no. but what i do know is that whatever government comes into power they're not going to be putting the country back into recession or forcing house prices downwards.before it happens the issue will be solved by the CML.

do you really think that they will allow this to happen?

The government won't continue QE and 0.5% interest rates in the medium term, even if they know it will negatively impact house prices.

The CML don't have a solution to the funding gap that will fully support the mortgage market.

"The loss of investor confidence in wholesale debt markets left a £300 billion funding gap that has only been filled on a temporary basis by government funds under the special liquidity and credit guarantee schemes. These schemes expire between 2011 and 2014, leaving uncertainty about how far, and through what sources, lenders will be able to refinance this funding.

Retail deposits will not be large enough to fill the gap. But the government has not yet recognised the need for a strategy to put mortgage funding markets back on a sustainable footing. Unless it does so, the likelihood is that the mortgage market will shrink."

http://www.cml.org.uk/cml/media/press/2527

It's not a question of allowing it to happen, it's the absence of any solutions. The government could make more loans but I think it's very unlikely given by 2012-2014 they'll be reducing the deficit and looking to unwind the bank bailout guarantees etc too.

I'm sure the government accepts that protecting the housing market is important, but not at the expense of our currency (QE + ZIRP) and reducing the deficit in the future (continuing bailouts and guarantees like the CML one).