The property boom is well underway now.

Conrad

Thrugelmir wrote: »

Particularly the tunnel vision approach of ignoring the hard facts.

Which hard facts rock your boat then?

Let me guess....... they involve a frightening budget defecit, unemployment and the 'fact' we don't make anything anymore:rotfl:

Kohoutek

I think it's the fact about bank credit inevitably contracting - according to the CML, and the fact about taxes increasing, and the fact about interest rates eventually increasing.

Council_of_Mortgage_Lenders wrote:

At the moment we cannot see how to square the circle between increasing demand for housing, constraints on the necessary finance to deliver it, the repayment of £300 billion of lending support between 2011 and 2014, and reductions in public spending as the fiscal deficit is addressed. And all of these features apply at a time when more people are going to need housing help.

http://www.cml.org.uk/cml/media/press/2572

How do you 'square the circle'? The HPI fairy?

Conrad

Kohoutek wrote: »

I think it's the fact about bank credit inevitably contracting - according to the CML, and the fact about taxes increasing, and the fact about interest rates eventually increasing.

Lending is super profitable and this WILL attract investment. TMW (Nationwide) charge 3.5% fees on 1 year money and people are queuing up for it. Never in my time has lending been anything like as profitable.

Taxes increasing - people wont notice over time - we just come to accept them and indeed many will find ways around them. For example high earning directors pay thier spouse' more (to benefit form new Tax free threshold) and themselves less.

Rates rising - yep again we just cope as we always do and less than 1% of mortgagees will be repo'd. Ho hum:A

twadge_face

Conrad wrote: »

I do not give advice - my service is 'information only' (as per FSA service level options) so the clients make thier own decisions.

You implicitly guide people toward fraud.

They're going to love you when the market resumes its crash! NOT.

99% of mortgagees do NOT get repossessed - can someone let all the dailywail readers in on this

What does this mean? If someone takes a mortgage out now they have only got a 1% chance of failure to keep up repayments without government backup, thus become subject to repossession? No, it is meaningless twaddle.

Also if you're criticising the Mail (a paper I similarly dislike) could you please elucidate us on what press you read? I recommend the Economist, an balanced publication which acknowledge the dire straits this country is in and its prolonged property bubble in relation to global real estate.

The best salespeople are always those who believe their own nonsense. Trust me, I sold home insurance for 2 years very successfully... so glad I don't do it anymore. To permit oneself to look at things from an unbiased and balanced point of view is a transcendental spiritual revelation. May God bless you.

You'll be in my prayers.

Kohoutek

Conrad wrote: »

Lending is super profitable and this WILL attract investment.

Raising £300 billion+ is a pretty tall order though, especially to lend to our esteemed financial 'institutions'? The whole UK mortgage market in terms of loans outstanding is only £1.2 trillion.

Jonathan Pierce, from Credit Suisse, believes UK banks will have to reduce the size of their balance sheets by as much as £530bn over the next three to four years to meet new regulations.

According to his analysis, British banks need to issue £420bn-£750bn of long-term wholesale funds. "We don't think this is plausible and hence we expect balance sheet footings to fall by 6pc-18pc to compensate," he said. He predicts a minimum reduction in credit of £200bn.

UK banks gorged on cheap wholesale funding during the boom to finance a glut of mortgages and commercial property loans. However, the wholesale markets slammed shut after Northern Rock's collapse and are only just reopening.

http://www.telegraph.co.uk/finance/economics/7409166/New-credit-crunch-risk-as-banks-face-funding-crisis.html

Conrad wrote: »

Rates rising - yep again we just cope as we always do and less than 1% of mortgagees will be repo'd.

In the wake of the last recession BoE rates hit 15% - how do think the housing market would cope with even a third of that? I'm guessing more than 1% repossessions.

Thrugelmir

Conrad wrote: »

Which hard facts rock your boat then?

Let me guess....... they involve a frightening budget defecit, unemployment and the 'fact' we don't make anything anymore:rotfl:

Regulation of mortgage brokers......:D

Lending is super profitable and this WILL attract investment.

Investment from where? According to you everybody should take out an interest only mortgage. :think:

Taxes increasing - people wont notice over time - we just come to accept them and indeed many will find ways around them

People are noticing petrol prices already.... For a business with high usage this is adding a considerable burden to operating costs. So I guess you are suggesting pilfering petrol in this instance.......

Thrugelmir

Kohoutek wrote: »

Raising £300 billion+ is a pretty tall order though, especially to lend to our esteemed financial 'institutions'? The whole UK mortgage market in terms of loans outstanding is only £1.2 trillion.

I'm surprised the bulls haven't mentioned yet the "banks" that are going to materialise and fill the void. As lending in the UK mortgage market is so profitable and an opportunity people shouldn't miss.

Probably too busy getting their calculators out to see how much they squeeze their rents up by, while they still can.

Graham_Devon

Conrad wrote: »

I do not give advice - my service is 'information only' (as per FSA service level options) so the clients make thier own decisions.

Exactly what those selling sub prime mortgages said.

Conrad, you are doing an injustice to all mortgage advisors out there. Seriously. Personally like I have said, I think you are just enjoying the responses you are getting from your flaming.

However, is this is seriously how you run your business, I am lost for words.

silvercar

Going interest only keeps your options only. Pay off chunks as and when you can, just pay IO when times are tight. Keeps the ball in your court.

All the offset mortgages are IO and plenty of people use them to build up savings without paying tax on interest. They then have the money to borrow as and when needed at mortgage rates - forget the car loans and unsecured loans at 9%+.

Going IO and trading up along the way gives you opportunities in retirement. If you've saved the cash over the years you can pay off the mortgage and stay put; need the money for your pension or because you have had some tough times and you can sell up and buy something smaller with the HPI.

Graham_Devon

silvercar wrote: »

Going interest only keeps your options only. Pay off chunks as and when you can, just pay IO when times are tight. Keeps the ball in your court.

All the offset mortgages are IO and plenty of people use them to build up savings without paying tax on interest. They then have the money to borrow as and when needed at mortgage rates - forget the car loans and unsecured loans at 9%+.

Going IO and trading up along the way gives you opportunities in retirement. If you've saved the cash over the years you can pay off the mortgage and stay put; need the money for your pension or because you have had some tough times and you can sell up and buy something smaller with the HPI.

Is this how IO has really been used though?

It's usually been used because those buying simply cannot afford the equivalent repayment each month.