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Debate House Prices


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Mortgage lenders call for restrictions on lending to be watered down.

135

Comments

  • ninky_2
    ninky_2 Posts: 5,872 Forumite
    one good reason for keeping housing costs to a minimum (mortgage expenditure to income in particular) is this frees up a whole load more disposable income to be injected into the economy. if you have a population totally indebted to mortgage repayment for most of their lives that's not going to leave much extra dosh for retailers etc.
    Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron
  • satchmeister
    satchmeister Posts: 372 Forumite
    edited 5 November 2010 at 12:01PM
    ninky wrote: »
    one good reason for keeping housing costs to a minimum (mortgage expenditure to income in particular) is this frees up a whole load more disposable income to be injected into the economy. if you have a population totally indebted to mortgage repayment for most of their lives that's not going to leave much extra dosh for retailers etc.
    You don't understand, houses are the economy :rotfl:. Selling piles of bricks to each other at higher and higher prices is what the UK does. The banking sector was rescued so we could continue doing this. QE is there to keep mortgage rates low. In the meantime we can export manufacturing jobs abroad and outsource services.

    Look how good things were when there were 125% mortgages at 6x salaries, now all we have is doom and gloom. At least under Gordon there were plenty of public sector jobs and rising house prices.
  • The requirement for 25% deposit,
    What requirement for a 25% deposit? There are 90% mortgages out there.

    Personally I think the standard 10% is rather low and that people should save 15%, preferably 20%. It leaves you with a smaller mortgage and in a better financial position.
  • A._Badger
    A._Badger Posts: 5,882 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    What requirement for a 25% deposit? There are 90% mortgages out there.

    Personally I think the standard 10% is rather low and that people should save 15%, preferably 20%. It leaves you with a smaller mortgage and in a better financial position.

    Why not just let people make up their own minds, instead of trying to control their every move?
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    What requirement for a 25% deposit? There are 90% mortgages out there.

    Personally I think the standard 10% is rather low and that people should save 15%, preferably 20%. It leaves you with a smaller mortgage and in a better financial position.

    It may be a much larger mortgage and worse financial position if house prices have increased while you have been saving (chasing your tail) icon7.gif
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    A._Badger wrote: »
    Why not just let people make up their own minds, instead of trying to control their every move?

    Fine.

    So long as we haven't got to bail them all out. But were bailing out not only the banks, but also the borrowers.
  • ILW
    ILW Posts: 18,333 Forumite
    A._Badger wrote: »
    Why not just let people make up their own minds, instead of trying to control their every move?

    Possibly because the taxpayers ends up propping them up when things go wrong. This applies to both the lender and borrower it appears.
  • A._Badger
    A._Badger Posts: 5,882 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    ILW wrote: »
    Possibly because the taxpayers ends up propping them up when things go wrong. This applies to both the lender and borrower it appears.

    How many times does it need to be said that, with the possible exception of NR, the bail-outs weren't brought about by defaults on UK mortgage business?
  • AD9898_2
    AD9898_2 Posts: 527 Forumite
    I know there are people on here that don't agree, but I'd still like to see rigid wage multiples being adhered to, what we would have then is no one over extending, house prices would rise with wage inflation which is good for everyone. People nearing retirement and downsizing would still make a tidy profit, but people buying in at the bottom wouldn't suffer as prices would have risen with wages meaning they wouldn't be any worse off than the previous generation.

    Of course many people who've owned for decades don't want this, they want to maximise any price rises they can while sticking the middle finger at the people born later.

    To me this is blatantly unfair and greedy. Prices have risen too much too quickly, as a result hundreds of thousands of families are forced to dump their kids into 12 hour childcare so both parents can go out to work to pay the banks their mortgage interest.
    Have owned outright since Sept 2009, however I'm of the firm belief that high prices are a cancer on society, they have sucked money out of the economy, handing it to banks who've squandered it.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    A._Badger wrote: »
    How many times does it need to be said that, with the possible exception of NR, the bail-outs weren't brought about by defaults on UK mortgage business?
    add the "massive" Bradford & Bingley and the "massive" random scottich (Dumfernline was it??) building society to that list please.
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