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Large Deposit Requirements Exclude a Generation of FTB's
Comments
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Yep. We gone full circle. Were back to 2008.
No point in pointing ANY of the stuff we did out to Hamish if were back at this point. US had the problems, we didn't...end of.
If were back to 2008, some interesting discussions coming up are:
- Interest rates need to be lower.
- Stimulus, and the need for printing money.
- Lack of supply should will hold prices up, only way to reduce prices is build more houses.
- Banks are being nasty, they are rationing credit therefore reducing demand.
- Aberdeen is ok.
- House prices are not to high, buy now, you'll save 1% on your mortgage payments.
- The US is at fault, not us
- Circle end / start.0 -
HAMISH_MCTAVISH wrote: »No, it really was almost nothing to do with us.
The international wholesale money markets, which completely froze up when the scale of the fraud and mis-selling that happened in America was uncovered.
The American market caused the problem. The global markets suffered the consequences, even though we had nothing to do with causing the problem.
So, why did banks such as HSBC, Barclays not require too much "help" (as far as I`m aware), but the likes of NR, B&B, Halifax required plenty of assistance from the taxpayer ?
It appears they were heavily exposed to what was going on in the States.
Yes, I agree that our property/mortgage market wasn`t so "out of control" as in the US, but I witnessed us going down the same path. IO mortgages, Self-Cert, 100%+ etc. If it hadn`t gone pear shaped in the US, where would our market be now ? I`d say closer to where the US ended up.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
HAMISH_MCTAVISH wrote: »We should have been as decisive as the Australians were in protecting their banks and stimulating their market to avoid a crash, and subsequent recession.
Just one more wafer thin mint............30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
So, why did banks such as HSBC, Barclays not require too much "help" (as far as I`m aware), but the likes of NR, B&B, Halifax required plenty of assistance from the taxpayer ?
Barclays sold part of itself to the Qatari royal family to inject capital.
HSBC had access to enormous capital deposits from it's Asia operations.It appears they were heavily exposed to what was going on in the States.
.
The UK banks that had problems were invariably heavily exposed to USA residential or European commercial lending.
No bank failed because of exposure to non performing UK mortgage lending.
http://forums.moneysavingexpert.com/showpost.php?p=37587616&postcount=9“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Totally agree. Let's go back to sanity.Graham_Devon wrote: »Theres less wrong with requiring 10% deposits, than there is with giving out 100% (and plus) mortgages.
It'll be interesting to see how the mortgage companies classify student debt, though. Presumably they'll expand the affordability models many of them already use to assess ability to pay.0 -
HAMISH_MCTAVISH wrote: »No bank failed because of exposure to non performing UK mortgage lending.
Good, let`s keep it that way.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
HAMISH_MCTAVISH wrote: »I've yet to see an FTB in the real world, outside of these forums, complain about high house prices.
With rent being more expensive than mortgage payments in most areas, it's obviously affordable to buy. IF you can get a mortgage, which many can't because of mortgage rationing and absurd deposit requirements.
How is an FTB supposed to save 30K, 40K, 50K for a deposit when rent is more expensive than a mortgage payment? I've yet to hear a good answer....
Now this is bizzare...
Same thread...HAMISH_MCTAVISH wrote: »The one thing that first time buyers pray for to help them achieve their goal will, ironically, probably make the situation even worse.
So you were saying what Hamish? It must be that praying for lax lending will make the problems worse. Afterall, you don't know any FTB's praying for lower prices. So it's the only conclusion I can come to.0 -
Good, let`s keep it that way.
In fairness, even 2007 UK mortgage lending standards were exponentially better than the USA lending standards that caused the crisis.
There is no risk-based reason why UK banks could not revert to 90% and 95% lending tomorrow. It's purely a matter of funding. They don't have access to the funds to lend, and so must ration the funds they have.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
A FTB that hasn't run up a ton of debt and is in stable employment can get 10% deposit mortgage, as said before, What is the problem?0
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Graham_Devon wrote: »Now this is bizzare...
.
Graham, serously, get help.
I'd suggest starting here.....
http://www.mentalhealth.org.uk/information/“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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