Ashes to Ashes

Orpheo

Mortgage lending back to the 80s.

http://www.24dash.com/news/housing/2010-12-22-UK-mortgage-lending-to-slip-to-lowest-level-since-1980-CML

"Right, let's fire up the Quattro."

Conrad

As a broker I feel like a tommy in the trench in 1916. The Generals and that in this case means the Politicians and media do not appreciate whats going on down here in the trench.

I ahev as amany people want to buy as ever but regulation barrs them.

dopester

Conrad wrote: »

As a broker I feel like a tommy in the trench in 1916. The Generals and that in this case means the Politicians and media do not appreciate whats going on down here in the trench.

I ahev as amany people want to buy as ever but regulation barrs them.

Regulation ?

Conrad

dopester wrote: »

Regulation ?

Many good credit risks are unable to get a mortgage due to tightened regulation.

One example - the divorcee in her late 50s without a pension as big as her earned income at 65, is forced get a mortgage over 7 years so it then fails affordability tests. The only option is PURE interest only (an ISA is no good as the contribution level over 7 years again fails affordability), but then it is very hard and nusualy inpossible to get pure IO past a lender now.

Now here is the key point; Less than 1% of homeowners ever get repo'd yet now millions of hitherto good creit risks are frozen out.

In the past our divorcee according to the stats would not have been repo'd and would have found a way of paying down her mortgage (letting a room / inheritance etc) but now Vince Cable with his back to basics lending is throwing millions of people into the rental sector. As ever the Genrals are not in tocu with the trenches so are blisfuly unaware.

This is merely making landlords richer.

A great unseen injustice is underway and no one knows.

Before I get the usual 'sour grapes broker' comment, I am doing well as people need me more than ever, so this is not about me.

AD9898_2

Conrad wrote: »

As a broker I feel like a tommy in the trench in 1916. The Generals and that in this case means the Politicians and media do not appreciate whats going on down here in the trench.

I ahev as amany people want to buy as ever but regulation barrs them.

You just don't get it do you ? These people are being saved from themselves, saved from the national brainwashing that has taken place over the past decade.

Here's a question, if you had £10 million in your bank account would 'you' lend all your money out to these people over a 25 year period at this time ? I bet you wouldn't, and if you wouldn't why should the banks ?

Prices need to come down or there needs to be significant wage inflation, until that time the housing market will continue in it's current state, unless of course IRs rise then the dam will break and all those people you wish send into a lifetime of debt enslavement will be washed away, but hey you will have trousered your commission so what would you care.

michaels

I was hoping this was the cricket thread but oh well...

Ok - so in the case of the borrower mentioned I suspect over 7 years (or longer) the cost of owning the property (interest, nominal price changes etc) would be cheaper than renting the equivalent property.

AD9898 wrote: »

You just don't get it do you ? These people are being saved from themselves, saved from the national brainwashing that has taken place over the past decade.

StevieJ

AD9898 wrote: »

You just don't get it do you ? These people are being saved from themselves, saved from the national brainwashing that has taken place over the past decade.

Here's a question, if you had £10 million in your bank account would 'you' lend all your money out to these people over a 25 year period at this time ? I bet you wouldn't, and if you wouldn't why should the banks ?

It may be safer lending it out

dopester

AD9898 wrote: »

Here's a question, if you had £10 million in your bank account would 'you' lend all your money out to these people over a 25 year period at this time ? I bet you wouldn't, and if you wouldn't why should the banks ?

If they were all as 'safe' lending prospects as Conrad implies, I would have thought there would be growth in niche lenders, charging just a little premium for the unusual risks, willing to fill the void from the mainstream lenders.

Stevie is right. I'd be looking for returns with some of that £10m... but right now I wouldn't risk it in anything other than gilts and treasuries and other (supposedly) safe instruments even at a micro return. Definately not that oil share they are discussing on another thread in the £3.60 range which Cleaver sees going to £8. $10 per barrel in the coming deflationary cascade. "You’re not getting much from savings these days but earning 0% is better than losing 50%."

Additional: If it were my own £10m then I'd be prepared to take more risks, especially helping start up companies. Gilts and treasuries if clients money.

markharding557

Conrad wrote

One example - the divorcee in her late 50s without a pension as big as her earned income at 65, is forced get a mortgage over 7 years so it then fails affordability tests.

The woman in this example has too few years to retirement for a long mortgage in my view
Properly regulated is how it was and it is not before time that it goes back that way.
before any one wonders i can't afford a mortgage either due to financial problems and i wouldn't expect a lender to give me one either

PaulW1965

Conrad are you suggesting your 50+ year old should be able to get a 25 year mortgage? 'cos I think that is just wrong.

IMHO people should be Mortgage free by 50.

doire_2

Conrad wrote: »

As a broker I feel like a tommy in the trench in 1916. The Generals and that in this case means the Politicians and media do not appreciate whats going on down here in the trench.

I ahev as amany people want to buy as ever but regulation barrs them.

You mean no deposit? Tough!