Mortgage Lending for new purchase up 19%.

chucky

DervProf wrote: »

Wait long enough, and the banks will say "ooh look, property is no longer too much of a risk for us to lend on. Instead of dishing out £100K to one borrower for one property, we can now lend £50K each to two borrowers for two different properties. That seems like less of a risk. Let`s do it !".

Makes sense ?

of course it makes sense if the banks balance sheets and debt portfolios weren't exposed to property.

if we get to the 50% off property levels most of the banks would be bust and there would be no where to get a mortgage anyway.

chucky

Graham_Devon wrote: »

This one?



Theres probably some reason as to why this does not count.

it means 1,000 less people have purchased a property in a month using a mortgage.

what do you think it means?

DervProf

chucky wrote: »

of course it makes sense if the banks balance sheets and debt portfolios weren't exposed to property.

if we get to the 50% off property levels most of the banks would be bust and there would be no where to get a mortgage anyway.

Conclusion : It`s a mess.

Really2

DervProf wrote: »

Wait long enough, and the banks will say "ooh look, property is no longer too much of a risk for us to lend on. Instead of dishing out £100K to one borrower for one property, we can now lend £50K each to two borrowers for two different properties. That seems like less of a risk. Let`s do it !".

Makes sense ?

2 People are more likely to lose there job than one so more likely to default.

I was told that about 2 incomes being less risk for a bank by some on here some time ago. I was corrected that 2 incomes were more risk as one was statistically more likely to lose their job.

So the same must ring true in your scenario, they stand more chance of a default if they lend to 2 not one.

chucky

DervProf wrote: »

Conclusion : It`s a mess.

of course it is - that's my whole point that the lower the house price the fewer people that will buy property.

but you should have come back to me and said that the bank stress tests were done using 40%-50% house price drops and they all passed... i have the answer for why they passed that one too btw

Henry_P_Chester

chucky wrote: »

that's the whole point.

house prices falling mean that less people will buy property.

house prices falling mean that less people will be able to buy property.

So now they are falling you are saying they will fall further as no one can buy?

the tired argument of house prices falling and the deposit amount being smaller may be correct but it falls over right at the begining because if house prices were that low you wouldn't be able to get a mortgage or the banks would already be bust.

The banks already are bust, that's why you and I had to bail them out Chucky.
Mortgages are already very difficult to get for the vast majority.

chucky

Henry_P_Chester wrote: »

So now they are falling you are saying they will fall further as no one can buy?

no that's not what i said

Henry_P_Chester wrote: »

The banks already are bust, that's why you and I had to bail them out Chucky.
Mortgages are already very difficult to get for the vast majority.

you've made my point i made on page 2 on this thread that made the Professor of Devonian Economics all frothy and disagree with it all.

please explain that to Mr Muddle

Graham_Devon

chucky wrote: »

thanks for the sound bite post but i will only do so when people get personal with me.

Really?

chucky wrote: »

you've made my point i made on page 2 on this thread that made the Professor of Devonian Economics all frothy and disagree with it all.

Fail.

Henry_P_Chester

Originally Posted by chucky
that's the whole point.

house prices falling mean that less people will buy property.

house prices falling mean that less people will be able to buy property.

If less are people are buying and less people can buy what happens to prices?

It's plain for all to see what you said, no need to make a fool of yourself denying it.

I suppose now you'll try and switch to arguing another point which is completely irrelevant as per usual...

Really2

Henry_P_Chester wrote: »

If less are people are buying and less people can buy what happens to prices?

neverdespairgirl wrote: »

:mad::mad::mad::mad::mad::mad::mad::mad::mad::mad:

You will make some very angry.