Banks about to lend again..........

Sibley

I really think thae banks are trying to ceate another housing bubble. As soon as they relax lending criteria there will be a mass buying spree. People think houses won't increase in value but I bet they do.

I predict that when money is available easily, house prices will rise sharply. You will go back to the guzumping days overnight. Sellers ought to box clever and just wait a short while. Don't sell cheaply now. It will affect the rest of your life.

MORTGAGE LENDERS URGED TO ACT FOR FIRST-TIME BUYERS

Grant Shapps has called a top-level “brain-storming ­session” to get the market moving

Sunday February 13,2011

By Kirsty Buchanan

Have your say(1)

MORTGAGE lenders will be called to Whitehall this week for a summit to help Britain’s first-time house buyers.

With lending to new homeowners at a fresh low, Housing Minister Grant Shapps has called a top-level “brain-storming ­session” to get the market moving.
Lenders, bankers and political think-tanks will be asked to find ways to remove barriers to home ownership that have seen the average age of a first-time buyer rising to 37.
Mr Shapps said: “Home ownership is such a basic right, it is not like some ­luxury item you can easily live without.
“I am not ideologically attached to any particular form of home ownership but it is important to meet people’s aspirations.
“The job of government is not to tell ­people where to live or how to live but it is to try to meet the aspirations that your citizens have.
“In our case, a lot of people quite rightly want to own their own home. I think people appreciate the security of home ownership and it is therefore ­the Government’s job to find ways to make that happen.”

‘Home ownership is such a basic right’

Grant Shapps

He said Tuesday’s summit would not be about laying down the law to lenders but finding “creative solutions” to ending the mortgage drought for 1.4 million first-time buyers. Top of the agenda would be exploring ways to roll out an expansion of shared ownership schemes, which allow buyers to gain a foothold by purchasing a percentage of a property.
The summit will also look at ways to save first-time buyers from having to find deposits of more than 20 per cent.
Proposals will be drawn up to restore trust in mortgage insurance schemes which would reduce risk and encourage banks to lend. Mr Shapps said: “It is not really used in this country, even at its height only one in five buyers insured themselves, but it would be one way to say to lenders it reduces the risk.
SEARCH UK NEWS for:

“If buyers are prepared to take mortgage insurance then you can afford to lend because even if there was a default everyone is insured.”
The minister described the situation facing young buyers as “horrendous” and warned without a steady flow of people on to the property ladder the whole market could freeze up.
He said: “First-time buyers have a ­leveraging effect on the housing market and it so happens that first-time buyers disproportionately go for new homes so it’s an important economic driver. It is all part of the growth agenda.”
The summit comes amid fears that regulations proposed by the Financial Service Authority’s Mortgage Market Review could see first-time buyers reclassified as a risk category. Mr Shapps has urged the FSA to relax its proposals.

Read more: http://www.express.co.uk/posts/view/228754/Mortgage-lenders-urged-to-act-for-first-time-buyersMortgage-lenders-urged-to-act-for-first-time-buyers#ixzz1DowpwB8Z

AD9898_2

Lending is at a third of what it was at peak, so thats roughly an annual £200 billion funding gap, I don't see that being plugged anytime soon.

House prices were in huge bubble territory back then and to he honest they still are, but rather than prices coming off 40-50% so that the market could start to rebuild, prices have been kept artificially high by low IRs and it's approvals that have been allowed to fall off a cliff.

I think what was hoped for is instead of prices falling, inflation would have done it's job and reduced the price in 'real terms'.

Unfortunately that only works when wage inflation matches normal inflation, it obviously isn't so is actually making the problem worse by squeezing incomes.

Money that homeowners were jumping for joy at that was saved when they reduced IRs to current levels is now disappearing on fuel, food and other essentials.

I'd hate to be a forced seller at this time, you really are screwed unless you have the equity to drop your price.

Turnbull2000

The next upwards swing will be very different IMO, as prices are already relatively high. I'd say the future of the market is more like this...

1. Transactions will remain relatively low as funds will still not match that of the noughties.

2. First-time buyers will be largely limited to those with parental hand-outs and shared-ownership, the latter in particular being a key to house building.

3. There will be a permanent swing in lower rung purchases towards investors, from both BTL amateurs and large scale foreign investors.

4. Aside from share-ownership new build, home building levels will remain at their lowest levels ever, particularly with the Tories localism charter taking hold.

5. Those without parental handouts and single people will largely be confined to renting and insecure tenancies.

Turnbull2000

AD9898 wrote: »

House prices were in huge bubble territory back then and to he honest they still are, but rather than prices coming off 40-50% so that the market could start to rebuild, prices have been kept artificially high by low IRs and it's approvals that have been allowed to fall off a cliff.

I've been saying for years that there's no fundamental reason for prices to fall heavily in nominal terms. Forced sellers setting prices at the margin and salary inflation have always been the key.

Ok, we had 20% nominal falls in 2008, but this was based on very few sales and a massive shock to the economy. Government intervention soon put a stop to this, and at least half these losses were recovered the year after.

The_Fox_3

Sibley wrote: »

I really think thae banks are trying to ceate another housing bubble. As soon as they relax lending criteria there will be a mass buying spree. People think houses won't increase in value but I bet they do.

I predict that when money is available easily, house prices will rise sharply. You will go back to the guzumping days overnight. Sellers ought to box clever and just wait a short while. Don't sell cheaply now. It will affect the rest of your life.

MORTGAGE LENDERS URGED TO ACT FOR FIRST-TIME BUYERS

Grant Shapps has called a top-level “brain-storming !session” to get the market moving

Sunday February 13,2011

By Kirsty Buchanan

Have your say(1)

MORTGAGE lenders will be called to Whitehall this week for a summit to help Britain’s first-time house buyers.

With lending to new homeowners at a fresh low, Housing Minister Grant Shapps has called a top-level “brain-storming !session” to get the market moving.
Lenders, bankers and political think-tanks will be asked to find ways to remove barriers to home ownership that have seen the average age of a first-time buyer rising to 37.
Mr Shapps said: “Home ownership is such a basic right, it is not like some !luxury item you can easily live without.
“I am not ideologically attached to any particular form of home ownership but it is important to meet people’s aspirations.
“The job of government is not to tell !people where to live or how to live but it is to try to meet the aspirations that your citizens have.
“In our case, a lot of people quite rightly want to own their own home. I think people appreciate the security of home ownership and it is therefore !the Government’s job to find ways to make that happen.”

‘Home ownership is such a basic right’

Grant Shapps

He said Tuesday’s summit would not be about laying down the law to lenders but finding “creative solutions” to ending the mortgage drought for 1.4 million first-time buyers. Top of the agenda would be exploring ways to roll out an expansion of shared ownership schemes, which allow buyers to gain a foothold by purchasing a percentage of a property.
The summit will also look at ways to save first-time buyers from having to find deposits of more than 20 per cent.
Proposals will be drawn up to restore trust in mortgage insurance schemes which would reduce risk and encourage banks to lend. Mr Shapps said: “It is not really used in this country, even at its height only one in five buyers insured themselves, but it would be one way to say to lenders it reduces the risk.
SEARCH UK NEWS for:

“If buyers are prepared to take mortgage insurance then you can afford to lend because even if there was a default everyone is insured.”
The minister described the situation facing young buyers as “horrendous” and warned without a steady flow of people on to the property ladder the whole market could freeze up.
He said: “First-time buyers have a !leveraging effect on the housing market and it so happens that first-time buyers disproportionately go for new homes so it’s an important economic driver. It is all part of the growth agenda.”
The summit comes amid fears that regulations proposed by the Financial Service Authority’s Mortgage Market Review could see first-time buyers reclassified as a risk category. Mr Shapps has urged the FSA to relax its proposals.

Read more: http://www.express.co.uk/posts/view/228754/Mortgage-lenders-urged-to-act-for-first-time-buyersMortgage-lenders-urged-to-act-for-first-time-buyers#ixzz1DowpwB8Z

Sibley

you really are quite a frightened little man, it is blantly obvious to me(and i am sure others) that all your posts are just counterpunches to what are your own fears on the forthcoming property crash.

doire_2

What a complete muppet you are Sibley.

Yes banks are going to hand out easy money again. And do it when IR can only go up. Kepp hoping because it will never happen

Check out the BBC NI iplayer and see what the British Banking Assoication have said on this mornings Polticis show about thier lending

And i did like this part of your post. What does that tell you?

He said Tuesday’s summit would not be about laying down the law to lenders but finding “creative solutions” to ending the mortgage drought for 1.4 million first-time buyers. Top of the agenda would be exploring ways to roll out an expansion of shared ownership schemes, which allow buyers to gain a foothold by purchasing a percentage of a property.

abaxas

It doesnt matter how much the traditional banks lend it still wont fill the funding gap.

Lots of players have left the market, do you really think the traditional banks are going to left 50% more more than they did the the boom?

If you do, stop eating that paper with the smiley face on.

nollag2006

abaxas wrote: »

... do you really think the traditional banks are going to left 50% more more than they did the the boom?

What does this question mean?

The bears seem to be getting increasingly incoherent by the day, as the market turns north again.

Prices are now at their 2007 level round my way, and rising slowly

abaxas

nollag2006 wrote: »

What does this question mean?

The bears seem to be getting increasingly incoherent by the day, as the market turns north again.

Prices are now at their 2007 level round my way, and rising slowly

Depending on who you beleive 30-50% of the uk mortgage market was taken up by no traditional lenders (ge money etc etc).

This money has disappeared from the market, the staff laid off with little chance of returning within the next 5-10 years.

Even if the traditional mortgage lenders were lending at boom time amounts, there would still be a huge shortfall.

Unless you want them to stop lending to business instead?

Graham_Devon

Turnbull2000 wrote: »

The next upwards swing will be very different IMO, as prices are already relatively high. I'd say the future of the market is more like this...

1. Transactions will remain relatively low as funds will still not match that of the noughties.

2. First-time buyers will be largely limited to those with parental hand-outs and shared-ownership, the latter in particular being a key to house building.

3. There will be a permanent swing in lower rung purchases towards investors, from both BTL amateurs and large scale foreign investors.

4. Aside from share-ownership new build, home building levels will remain at their lowest levels ever, particularly with the Tories localism charter taking hold.

5. Those without parental handouts and single people will largely be confined to renting and insecure tenancies.

Unfortunately, you may actually be right.

Let's face it, no one wants to lose their equity, and would rather see others suffer. In this case, it's the younger generation.

The younger generation in part owned housing, and single / divorced people in inseucre tennancies for the rest of their life, is probably seen as a price worth paying for others to keep their equity....

I hope it doesn't go that way....but am mindful that it could very well do.

wherediditallgothen

Has anyone fetched Sibley some kleenex?