Cameron blames lenders for weak UK housing market

Jim_B_3

Perhaps Cameron would like to fund the mortgages out of this own pocket? How private companies choose to conduct business within the law is none of his concern, and if they choose not to lend money to people in their pursuit of profit, that's entirely their decision. They're not a public service and their remit does not include elevating house prices.

Really2

jamespmg44 wrote: »

But was easy mortgages not one of the main reasons for the credit crunch happening.

It should be hard to get a mortgage in my opinion - a sizeable deposit and cast iron proof of income should be required.

100%+ was the problem and high multiples. not 5% or 10% deposits.

FantomX

Really2 wrote: »

TBF there is still demand

Yep...and there has always been demand for Ferraris, Porsches, McLarens, Mansions, Villas abroad, etc...but only those with the means to pay and "wealth" to support such demands have been able to get them.

So your point is what exactly? Please don't drop the "Obvious Bombshell" that is: just about EVERYONE wants a house? :eek:

Not everyone can have what they want and that is why DEMAND means nothing without the means to back it up!

I demand a Beemer M5...but I won't get one because I CANNOT AFFORD a BMW M5 and I don't have the means to pay the debt back...but do you see BMW taking my demand into account and building more M5s? NO! Now times that analogy by about a couple of Million others who want BMW M5s but cannot afford them...the demand is there...but BMW are not increasing production?

I wonder why?

FantomX

Really2 wrote: »

100%+ was the problem and high multiples. not 5% or 10% deposits.

Nonsense! Easy credit, low interest rates, fraud in all areas of the Ponzi scheme AND lax procedures was (and in many cases STILL is) the problem.

chucky

FantomX wrote: »

Nonsense! Easy credit, low interest rates, fraud in all areas of the Ponzi scheme AND lax procedures was (and in many cases STILL is) the problem.

that's the correct answer for this forum but nothing really happened to US banks that caused them to have massive holes in their balance sheets sucking the liquidity out of the money markets that forced the economic downturn was there... no wait

Really2

FantomX wrote: »

Yep...and there has always been demand for Ferraris, Porsches, McLarens, Mansions, Villas abroad, etc...but only those with the means to pay and "wealth" to support such demands have been able to get them.

So your point is what exactly? Please don't drop the "Obvious Bombshell" that is: just about EVERYONE wants a house?

Not everyone can have what they want and that is why DEMAND means nothing!

Yep and there as always been a sales price where supply and demand meet.

The point is obvious, there are people out there with jobs and deposits of 5%, 10%, 15%, 20% just not 25%.

The restricted lending at reasonable rates puts people off buying.

Do you think transaction would be so low if there were still 0.59% BOE trackers about with a 10% deposit?


As for your BMW part, I will leave that as you can't understand supply and demand.

There is such a thing as COG'S, you would not rachet up supply if you could only sell below COG'S.

M5s are the price they are as Supply = Demand and it goes past their cost of production.

But relate that to house prices, I presume you will not agree house prices are so high because of supply and demand?

Really2

FantomX wrote: »

Nonsense! Easy credit, low interest rates, fraud in all areas of the Ponzi scheme AND lax procedures was (and in many cases STILL is) the problem.

:rotfl:
100%+ and high multiples was not easy credit then???????? what was it constricted lending then.
A 5% or 10% deposit at 4.5X income was never a problem, but I dare say you think that is easy credit.


who and the ponzi scheme again, which site did you get kicked off? let me guess.

FantomX

Hmm...I have misunderstood you and waded in without reading your posts properly. Apologies for that!

I haven't been kicked off any site but do post a lot on HPC.

Really2

FantomX wrote: »

but do post a lot on HPC.

I had guessed

It's like a finger print.

FantomX

Really2 wrote: »

I had guessed

It's like a finger print.

LOL! :rotfl: