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Buy to let replacing first time buyers
Comments
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Graham_Devon wrote: »Yer, and mobile phone contracts are rationed..
Stupid comparison.
Is there a limit to how many mobile phone contracts are available? Of course not.
If there is suddenly a shortage of mobile phones, and companies decide to increase the strictness of credit terms to reduce demand to match the limited supply (as has happened with mortgages), then that would be rationing.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Graham_Devon wrote: »If you are going to describe mortgage rationing in the way you are, unless you get the above, mortgages will always be "rationed".
I do have to say, it's a pathetic term to describe eligibility requirements.
I think Hamish uses the term "rationed" from his own persepective. He would like to see more lending taking palce, but it is not happening. Therefore, as far as he is concerned, lending is being rationed.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
HAMISH_MCTAVISH wrote: »Stupid comparison.
Is there a limit to how many mobile phone contracts are available? Of course not.
If there is suddenly a shortage of mobile phones, and companies decide to increase the strictness of credit terms to reduce demand to match the limited supply (as has happened with mortgages), then that would be rationing.
So are you saying that there is a shortgage of money for mortgage lending ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
I think Hamish uses the term "rationed" from his own persepective. He would like to see more lending taking palce, but it is not happening. Therefore, as far as he is concerned, lending is being rationed.
No, I'm using it in the correct definition of the word.
Rationing is defined as:
"The controlled distribution of scarce resources, goods, or services."
And I'm not the only one who sees it. The mainstream media and even the mortgage industry themselves admit rationing is going on.
The Telegraph:
Mortgage rationing 'likely to continue'
http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/6200760/Mortgage-rationing-likely-to-continue.html
The BBC:
Mortgage deals still being rationed by lenders
http://www.bbc.co.uk/news/business-10836519
ThisIsMoney:
Mortgage rationing leaves borrowers stuck
http://www.thisismoney.co.uk/mortgages-and-homes/mortgages-features/article.html?in_article_id=461109&in_page_id=58
The Guardian:
Mortgage industry raises alarm over loans 'rationing'
http://www.guardian.co.uk/money/2008/dec/03/mortgages-loans-michael-coogan-cml
The Council of Mortgage Lenders:
The Council of Mortgage Lenders has recently warned that mortgage rationing in the UK could continue to get worse
http://www.themoneystop.co.uk/012009/mortgage-rationing-could-get-worse-states-cml.html“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Graham_Devon wrote: »Yer, and mobile phone contracts are rationed.
Car loans are rationed.
Credit cards are rationed.
I do have to say, it's a pathetic term to describe eligibility requirements.
Exactly right - although you would have been better using Apple I phone 4 rather than a mobile phone contract as it allows Hamish to continue his fatuous arguments.
The problem is the world "rationing" makes it sound so unfair and implicates the big bad government in denying people their wants.
Back in the real world - if the UK government had not flooded the system with liquidity, then next to no-one would have been able to get a mortgage at all.0 -
So are you saying that there is a shortgage of money for mortgage lending ?
Are you being deliberately obtuse?“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Back in the real world - if the UK government had not flooded the system with liquidity, then next to no-one would have been able to get a mortgage at all.
Mortgage lending is still down 65% from peak.
Because the banks don't have the funds to lend.
If the market had been "flooded with liquidity" then we wouldn't have this problem. The liquidity never made it past the banks balance sheets.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Are you being deliberately obtuse?
A little.
However, if your mobile phone analogy is correct, then you are suggesting that there is a shortage of money for mortgage lending, and therefore the banks are rationing mortgages with tighter lending criteria.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
HAMISH_MCTAVISH wrote: »No, I'm using it in the correct definition of the word.
Rationing is defined as:
"The controlled distribution of scarce resources, goods, or services."
You conveniently forgot to paste the rest of the wiki definition.
"Rationing controls the size of the ration, one's allotted portion of the resources being distributed on a particular day or at a particular time".
What you are describing is the normal operation of a market where there is supply, demand and price. There may be huge demand for 95% mortgages at 1.79% above base, sadly the supply of mortgages demand 40% deposits at this price.
It basic economics Hamish - it ain't rationing.0 -
A little.
However, if your mobile phone analogy is correct, then you are suggesting that there is a shortage of money for mortgage lending, and therefore the banks are rationing mortgages with tighter lending criteria.
I'm not suggesting anything. I'm stating it as a fact.
There is a shortage of money for mortgage lending, and the banks are rationing it with onerous deposit requirements and absurdly tight credit standards.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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