Cameron blames lenders for weak UK housing market

ninky_2

Really2 wrote: »

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.

a look here suggests there are still many options with a 15 percent deposit with rates a lot lower than i was offered in 2004.

http://www.moneysupermarket.com/mortgages/

myhouse_2

Really2 wrote: »

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

What you say is quite true - there would be plenty of demand. But it's irrelevant in that the market is not about supply/demand of properties anymore, but about supply of money and risk - the banks are consciously trying to reduce their exposure to the property market and do not have the unlimited funds they had during the bubble. The logical conclusion is what we are seeing now.
I suspect the banks believe that housing is overpriced and therefore they want owners to absorb the negative equity by putting down a healthy deposit.

IveSeenTheLight

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? :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?

Demand for me is the desire and the ability to pay for something.
If you don't have the ability, it's simply desire

Therefore you don;t demand a Meemer M5, but desire one.

Emy1501

'If you are a single person, you are earning a decent salary. You go to the bank or building society, you are actually quite a good risk - they won't give you 80 per cent of the value, they won't give you four times your salary.'


Last time I went to a broker a few months ago you could get 3.5-4x salary with a 10% deposit. and 4-5x joint salary with a 15-20% depost.

If the PM new the actual truth then maybe he would actually start to understand the problem.

ninky_2

myhouse wrote: »

I suspect the banks believe that housing is overpriced and therefore they want owners to absorb the negative equity by putting down a healthy deposit.

exactly. if they thought property was going up they'd be back to easy lending. banks / lenders want to maximise profit and limit risk (to themselves and shareholders).

Really2

ninky wrote: »

a look here suggests there are still many options with a 15 percent deposit with rates a lot lower than i was offered in 2004.

http://www.moneysupermarket.com/mortgages/

Was it 2%+ over base then for a discounted Variable reverting to 4.5% over base? What was that compared to base in 2004?

Also I would say it is far harder to get a mortgage now than 2004.
Being availabe does not mean people can get it.

chucky

Thrugelmir wrote: »

But has been pro-actively making himself visible in the media.

Trying to spin out the VAT story.

So I guess the Tory media machine decided to get Cameron to say not a lot to change the headlines.

as opposed to Clegg saying that he wouldn't implement VAT and was against it or Cameron saying he is opposed to increasing the rate of VAT.

i guess it must be ok for these two to lie then...

good piece of spin there Thruglmeir, i'm impressed.

Emy1501

Really2 wrote: »

Also I would say it is far harder to get a mortgage now than 2004.
Being availabe does not mean people can get it.

When we were buying in 2004 no lender would lend more than 3x joint now you can get up to 5x. Difference then was Self Cert and subprime were starting to make their name. In my experience as long as you have 10-15% deposit and a good credit history you can get more now than in 2004 and a better rate especially fixed.

ninky_2

Really2 wrote: »

Was it 2%+ over base then for a discounted Variable reverting to 4.5% over base? What was that compared to base in 2004?

Also I would say it is far harder to get a mortgage now than 2004.
Being availabe does not mean people can get it.

can't remember exactly but it was around 6 percent from what i remember. mind you it was a self cert product.:D

it was only around 2007 i got a standard product based on the fact i could get enough income multiples for my net income.

ninky_2

Emy1501 wrote: »

When we were buying in 2004 no lender would lend more than 3x joint now you can get up to 5x. Difference then was Self Cert and subprime were starting to make their name. In my experience as long as you have 10-15% deposit and a good credit history you can get more now than in 2004 and a better rate especially fixed.

i agree. the problem isn't first time buyers. they've been struggling for a while. a bigger reason for the slump is the absence of self cert and more importantly less generous buy to let products. the heat in the market had been generated by those.