Debate House Prices
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Breakfast : Cereal and freshly squeezed......
DervProf
Posts: 4,035 Forumite
Borrowers.
http://www.guardian.co.uk/money/2010/oct/05/lenders-say-mortgage-reform-squeeze
Weep, wail, moan.
So, 4mill mortgages wouldn`t have been granted in the run up to the crunch. I wonder if that would have done anything to prevent the likes of Northern Rock having to be bailed out ? After all, didn`t NR go from a relatively small lender to quite a large player in short space of time ? Some of those, no, all of those 125% mortgages that they so wisely dished out would not have been allowed. Maybe they would still be independant from taxpayer ownership.
And what about the effect on the property market ? Not such good news I`m afraid. I suppose it would have been disastrous. 4 million properties unsold, or thousands, if not millions of people unable to remortgage ? I doubt it. The property market would have adapted to the lending conditions. There wouldn`t have been a surge in multiple ownership and speculation. Prices would have not increased so rapidly. And as I pointed out before, it may have prevented the "fast and loose" lending activities of Northern Rock, Bradford and Bingley etc.
No way to prove if any of this would have played out, and the damage has been done. I said at the time, when lenders were lending like there was no tomorrow (which there nearly wasn`t), that the brakes should be gently applied. Instead, it was pedal to the metal, which often ends in a crash. I hope you enjoyed the ride.
http://www.guardian.co.uk/money/2010/oct/05/lenders-say-mortgage-reform-squeeze
Weep, wail, moan.
So, 4mill mortgages wouldn`t have been granted in the run up to the crunch. I wonder if that would have done anything to prevent the likes of Northern Rock having to be bailed out ? After all, didn`t NR go from a relatively small lender to quite a large player in short space of time ? Some of those, no, all of those 125% mortgages that they so wisely dished out would not have been allowed. Maybe they would still be independant from taxpayer ownership.
And what about the effect on the property market ? Not such good news I`m afraid. I suppose it would have been disastrous. 4 million properties unsold, or thousands, if not millions of people unable to remortgage ? I doubt it. The property market would have adapted to the lending conditions. There wouldn`t have been a surge in multiple ownership and speculation. Prices would have not increased so rapidly. And as I pointed out before, it may have prevented the "fast and loose" lending activities of Northern Rock, Bradford and Bingley etc.
No way to prove if any of this would have played out, and the damage has been done. I said at the time, when lenders were lending like there was no tomorrow (which there nearly wasn`t), that the brakes should be gently applied. Instead, it was pedal to the metal, which often ends in a crash. I hope you enjoyed the ride.
30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.
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Comments
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HOUSE_PRICE_CRASH_GHOULS wrote: »Where' this crash then you ghouls have been waiting and praying for, day after day, month after month, year after YEAR???
The thing about most crashes, is that if you knew exactly when they were going to occur, you`d be able to avoid them. And most crashes happen because people are oblivious to the danger that lies ahead. Maybe the FSA are taking precautions. I`d say they`re applying the brakes a little too late, we`ll have to wait and see.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
HOUSE_PRICE_CRASH_GHOULS wrote: »Where' this crash then you ghouls have been waiting and praying for, day after day, month after month, year after YEAR???
Look mate, you've already been banned once under username MadnessOfHPC now you've come back using another. Can't you just b ugger off back to HPC and leave those of us who want to enter into some sensible debate, alone?0 -
CML are trying everything to stop the stricter rules from coming in.0
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It doesn't really matter who's right here. The FSA has done it's own calculations and come up with 16% and the CML have done something else and come up with 50%.
If heavy handed regulation leads to every house builder shutting up shop again, leading to job losses and negative GDP, the government will just wade in and fix the problem.
Banks not lending money is not a good thing.0 -
Banks lending to people who can pay it back is a good thing0
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Blacklight wrote: »If heavy handed regulation leads to every house builder shutting up shop again, leading to job losses and negative GDP, the government will just wade in and fix the problem.
I thought we had a different Government now? No more return to Labour boom and bust :rotfl:0 -
Blacklight wrote: »If heavy handed regulation leads to every house builder shutting up shop again, leading to job losses and negative GDP
Negative GDP because houses aren`t being built ?
A sad reflection on the state of our economy.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Negative GDP because houses aren`t being built ?
A sad reflection on the state of our economy.
The very first thing that happened once the media started ramping up the "downturn" news in mid 2007 was that house builders shut up shop overnight. They are an excellent barometer.
Sites just closed down and thousands were made unemployed. They'd seen it all before in the 90's and were well prepared for it. If everyone they employed had stayed in the country instead of going back to Poland then the unemployment figures would have been much worse.
With little public sector work (no major projects, no roads, etc), Olympics almost complete and no house building, the construction industry comes to a halt. This then has obvious further repercussions leading to negative growth again.
Do you really think the government will sit back and just make further spending cuts while this is going on?0 -
Blacklight wrote: »The Do you really think the government will sit back and just make further spending cuts while this is going on?
Yes......!0 -
Mr @rse - it's good to have you around.Aberdeenangarse wrote: »Can't you just b ugger off back to HPC and leave those of us who want to enter into some sensible debate, alone?
you make people like doire look intelligent...0
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