How the ban on 'liar-loans' will hit house prices

MikeJ74

None of this is to say that the collapsed mortgage approval numbers don't show a mortgage famine out there – talk to any estate agent and he'll tell you credit problems are killing deals. But, clearly, the market is still a lot more accommodating to liars, tax dodgers and those who just can't really afford a house than I thought it was (and than it should be). That's important because it means that the implementation of the FSA rules (which will insist borrowers properly prove their income via tax returns and the like) really will wipe out a large proportion of the demand for mortgages – and that prices will fall further as a result.
Add credit to a housing market and you get a boom. Take it away and you get a bust.


http://www.moneyweek.com/investments/property/fsa-liar-loan-ban-will-hit-house-prices-03903.aspx

Blacklight

Moneyweek.

I don't even need to click the link to know that it's some boring mumbo-jumbo from Merryn about how the banks going back to lending some irrelevant multiplier of earnings will cause complete collapse of the market. Of course she'll completely omit the fact that she's just bought herself a nice Georgian mansion and probably in the market for a BTL or two as rates are so low you'd be stupid not to.

doire_2

Blacklight wrote: »

Moneyweek.

I don't even need to click the link to know that it's some boring mumbo-jumbo from Merryn about how the banks going back to lending some irrelevant multiplier of earnings will cause complete collapse of the market. Of course she'll completely omit the fact that she's just bought herself a nice Georgian mansion and probably in the market for a BTL or two as rates are so low you'd be stupid not to.

Thats it....let it all out. You will feel better

1984ReturnsForReal_2

Isnt there already:

1) A liar loans thread

2) A Merryn thread

3) A letter to MP thread about liar loans thread

4) A STACK LOAD OF OTHERS

StevieJ

I was going so well until I saw your link

StevieJ

Blacklight wrote: »

Moneyweek.

I don't even need to click the link to know that it's some boring mumbo-jumbo from Merryn about how the banks going back to lending some irrelevant multiplier of earnings will cause complete collapse of the market. Of course she'll completely omit the fact that she's just bought herself a nice Georgian mansion and probably in the market for a BTL or two as rates are so low you'd be stupid not to.

It's her job, she doesn't have to believe it.