FSA advisers urge delay to mortgage reform and more 'flexible' lending

Emy1501

Ticket price is huge now in view of affordability calculators. The amount some can borow has reduced by anything between 20-30% and by up to 50% if you take into account liar loan.

Therefore there is now a ceiling as to how high prices can rise something we saw in 2004-2005 when the max any highstreet lender would offer was 3x joint.

ukcarper

Emy1501 wrote: »

Ticket price is huge now in view of affordability calculators. The amount some can borow has reduced by anything between 20-30% and by up to 50% if you take into account liar loan.

Therefore there is now a ceiling as to how high prices can rise something we saw in 2004-2005 when the max any highstreet lender would offer was 3x joint.

Male full time median £28k, female £22k, total £50k, 3x £150k,

Average house price £163k so affordable with a 10% deposit.

shortchanged_2

ukcarper wrote: »

Male full time median £28k, female £22k, total £50k, 3x £150k,

Average house price £163k so affordable with a 10% deposit.

It isn't a very forward looking example though ukcarper.

Full time female may well have children and become part time with added childcare costs.

This combined with potential interest rate rises.

ukcarper

shortchanged wrote: »

It isn't a very forward looking example though ukcarper.

Full time female may well have children and become part time with added childcare costs.

This combined with potential interest rate rises.

I'm not drawing any conclusions just saying you could get a big enough mortgage to buy average house.

Really2

Graham_Devon wrote: »

People were sitting around a table discussing new ways of providing the means for people to buy. This discussion was solely due to the fact that many people cannot buy due to the price.

Therefore, the price problem, has people discussing a way around the issue, through other market factors, such as new, higher lending, with funds set aside incase of default or negative equity (due to prices falling).

Odd you said 30/40 year mortgages would cause HPI.

75% of potential buyers see lending restrictions as the main restriction for not being able to buy.

If it was all about the price 30/40 year mortgages, any amount of tinkering 150% mortgages should not increase sales as in yours and many others view they are too expensive.

They don't get less expensive by changing the measures you believe would cause HPI, why? Because you know the demand will outstrip supply should anything change.

So it is the market factors dictating the price not the price dictating market factors.

Back to ebay tickets again,
Ticket sold retail £30, gig gets sold out, tickets sell for £500 in an auction.
What dictates the price of resold tickets?

Is it the supply, demand, and persons available cash willing to pay?

Or is it the price?

I would love an explanation how that is the price setting the market factors and not the market factors setting the resale price.

A £500 ticket may be overpriced for someone not willing to spend that much. But I can't see how lowering the price changes the market factors in the same situation? They will still be bid up and purchased by those willing to pay the most.

Really2

Emy1501 wrote: »

Ticket price is huge now in view of affordability calculators. The amount some can borow has reduced by anything between 20-30% and by up to 50% if you take into account liar loan.

Therefore there is now a ceiling as to how high prices can rise something we saw in 2004-2005 when the max any highstreet lender would offer was 3x joint.

So those sold p[rices are set by market factors not the ticket price. :beer:

shortchanged_2

ukcarper wrote: »

I'm not drawing any conclusions just saying you could get a big enough mortgage to buy average house.

But surely that is part of the problem in that people are really stretching themselves just to get that foot on the ladder and are not really looking at the longer term, bigger picture.

ukcarper

shortchanged wrote: »

But surely that is part of the problem in that people are really stretching themselves just to get that foot on the ladder and are not really looking at the longer term, bigger picture.

Take home pay £3226, £150k at 6% £977 a month at 8% £1170 a month so still over £2k a month left.

DervProf

chucky wrote: »

that's lovely but little to do with the floored point that it is all about the price

A flawed reply.

Graham_Devon

Crikey, is this still being argued?