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One Million FTB-s prevented from buying
Comments
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More crocodile tears from hamish *yawn*
And that brings up an interesting question..... Do crocodiles really shed tears ?
Answer : Only when they've just devoured a FTBer. (Tears of joy).30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Or you could say: One million people who cannot prove their stability and ability to pay a debt are prevented from getting one.0
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He could, but he won't.
Because it's false.
No sane person doubts that the vast majority of those people are perfectly able to safely and reliably pay a mortgage.“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: »No sane person doubts that the vast majority of those people are perfectly able to safely and reliably pay a mortgage.
No sane person believes that the banks should lend money they haven't got.
No sane person would have thought that there would have been no negative consequences of the credit boom.
No sane person that believes that there is a property shortage, would think that bringing an extra million people into the market is going to make that shortgage any smaller.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: »Because it's false.
No sane person doubts that the vast majority of those people are perfectly able to safely and reliably pay a mortgage.
Unless of couse, interest rates go up, and house prices come down. But to hell with it, lets get back to 100% mortgages... what harm could it possibly do?0 -
HAMISH_MCTAVISH wrote: »Because it's patently false.
Well I guess that clears it up, with Hamish the infallible has spoken.0 -
No sane person that believes that there is a property shortage, would think that bringing an extra million people into the market is going to make that shortgage any smaller.
Those people exist already. Living in overcrowded conditions or competing for rentals and driving up those prices instead.
Whilst the houses they should be moving into aren't getting built because of the mortgage famine.
Giving them access to mortgage funding will increase the number of houses being built, and decrease the shortage of housing.
Builders won't build what they can't sell....
Without an increase in mortgage funding, the shortage will continue to worsen rapidly. Just as it has in the last few years since the majority of mortgage funding was withdrawn.“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 -
It isn't mortgage rationing but risk mitigation by lenders and increased capital requirements on them post NR. I don't believe that lenders want this simply because by lending money they make money via the margins they receive, margins which are a record levels, so why would they want to ration it?
To the poster who asked which bank, rather than Building Society post HP statistics, what about the Halifax? They are (were!) a bank.0 -
HAMISH_MCTAVISH wrote: »Those people exist already. Living in overcrowded conditions or competing for rentals and driving up those prices instead.
Whilst the houses they should be moving into aren't getting built because of the mortgage famine.
Giving them access to mortgage funding will increase the number of houses being built, and decrease the shortage of housing.
Builders won't build what they can't sell....
Without an increase in mortgage funding, the shortage will continue to worsen rapidly. Just as it has in the last few years since the majority of mortgage funding was withdrawn.
I think we need to be careful here. I might be wrong, but I think you might be thinking - "if FTBs can get access to funds, that'll push prices up, which will benefit me". However, let's put our moral differences aside, and try get some agreement here.
I see what you are saying Hamish, and I will say that on first glance, it makes sense. Instead of simply pumping in the £££ and hoping for the best, how about this........
A scheme, coordinated by the government (but a good one this time, I think).
Banks offer a scheme to builders/FTBs which ties the 3 together. The bank lends money to the builder to build a house, but only if there is a suitable FTBer who will sign up to buy that house. When all 3 parties are in agreement, the bank lends to the builder. The builder builds the house. The bank lends the money to the FTBer to buy the house from the builder.
That's probably an idea that will be torn to pieces, but it seems kind of sensible to me. If you just lend to builders, they will be concerned about where the buyers will come from, or just build the wrong kind of properties. If you just lend to FTBers, you are putting more pressure on limited supply. If you lend to both, that might do the trick, but you can't guarantee that the builders will use the money to build suitable properties for FTBs. My idea might be the best option.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
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