A window opens for new mortgage deals: Stricter lending on hold

halight

A window opens for new mortgage deals: Stricter lending on hold


Read more: http://www.dailymail.co.uk/money/article-1331624/A-window-opens-new-mortgage-deals-Stricter-rules-bank-lending-hold.html#ixzz15uSu2ZKc

Millions of borrowers who feared that they could be shut out of the property market have been thrown a lifeline.


Read more: http://www.dailymail.co.uk/money/article-1331624/A-window-opens-new-mortgage-deals-Stricter-rules-bank-lending-hold.html#ixzz15uT0Y6ZT



Good news for some,

May keep HPI stable for a while.

Graham_Devon

Give it time, people will be complaining that the FSA didn't do enough, and blaming regulation for irresponsible lending.

The criteria was very hard to argue against.

It would, however, have stumped out lax lending, which is absolutely critical for further growth and bigger debts for the nation.

The only reason these proposals would have hit hard is because houses are overpriced, and therefore, the regulation would have made it difficult to be able to afford these houses. If house prices reduced, the regulation would be absolutely fine.

dopester

What sort of special function was that door made for?

The pic in the first link.

tomterm8

dopester wrote: »

What sort of special function was that door made for?

The pic in the first link.

Horses. It used to be a stable door. And they converted the stable, but kept the character of the building.

It is also quite good for letting theives in.

BringtheStoneshome

halight wrote: »

A window opens for new mortgage deals: Stricter lending on hold


Read more: http://www.dailymail.co.uk/money/article-1331624/A-window-opens-new-mortgage-deals-Stricter-rules-bank-lending-hold.html#ixzz15uSu2ZKc

Millions of borrowers who feared that they could be shut out of the property market have been thrown a lifeline.


Read more: http://www.dailymail.co.uk/money/article-1331624/A-window-opens-new-mortgage-deals-Stricter-rules-bank-lending-hold.html#ixzz15uT0Y6ZT



Good news for some,

May keep HPI stable for a while.

This is pretty poor news overall. What has driven house prices to ridiculously overvalued prices in the last ten years is allowing people to have mortgages that they could not afford to pay. What has then been concentrated on by banks is not affordability but equity. i.e. I could probably get a £200k house if I put down £50k despite the fact that I would get decimated by the repayments on £150k mortgage.

Affordability criteria would stop people getting into trouble, reposessed, racking up ludicrous debt.

Personally, we were offered £140k mortgage when we trotted along to a bank. I stuck to 3 x joint salary (£106k at the time). We don't have such a nice house but we can at least afford it, even with some interest rate rises.

halight

BringtheStoneshome wrote: »

This is pretty poor news overall. What has driven house prices to ridiculously overvalued prices in the last ten years is allowing people to have mortgages that they could not afford to pay. What has then been concentrated on by banks is not affordability but equity. i.e. I could probably get a £200k house if I put down £50k despite the fact that I would get decimated by the repayments on £150k mortgage.

Affordability criteria would stop people getting into trouble, reposessed, racking up ludicrous debt.

Personally, we were offered £140k mortgage when we trotted along to a bank. I stuck to 3 x joint salary (£106k at the time). We don't have such a nice house but we can at least afford it, even with some interest rate rises.

We also did not buy the house that we realkly wont. We went for a cheeper one at the time because we also wont to have a baby. We ended haveing twins and we are now in a house that really is too small for the four of us. But we have a cheeper mortgage than we would have had. So its a trade off really.

System

BringtheStoneshome wrote: »

This is pretty poor news overall. What has driven house prices to ridiculously overvalued prices in the last ten years is allowing people to have mortgages that they could not afford to pay

What percentage of people couldn't afford to pay?

Graham_Devon

Joeskeppi wrote: »

What percentage of people couldn't afford to pay?

All those 2.5% in arrears.

All those "would be in arrears" if it wasn't for extended SMI policies.

The wilsons. They couldn't afford to pay, but were too big to go under, so on a very preferencial rate as the lender had no real option but to change their terms mid term otherwise the lender would have gone down with them.

And many many more of the "Zombie" households, if it wasn't for such low base rates.

Let's not pretend there isn't a problem just because all of the above is propping people up.

Rinoa

Joeskeppi wrote: »

What percentage of people couldn't afford to pay?

Each year one in 400 homes are repossessed according to CML.

Evidently 99.75% can afford to pay using the current rules and regs.

Graham_Devon

Rinoa wrote: »

Each year one in 400 homes are repossessed according to CML.

Evidently 99.75% can afford to pay using the current rules and regs.

Ok, let's pretend.

Rinoa

Graham_Devon wrote: »

Ok, let's pretend.

You mean "...lets pretend there is a massive problem leading to 1 in 400 homes being repossessed that can only be fixed be limiting mortgages to 50% of those who were eligible previously."

BTW if they cant afford a mortgage how can they afford to rent?