60% of Mortgage Applications Refused

Conrad

doire wrote: »

Get used to it and stop moaning :T

Your'e pleased more and more would be owners are forced to make landlords rich?

ILW

Road_Hog wrote: »

Shortage is when there is physically not enough of something to go around. Rationing is where there is plenty/enough supply, but those that control the supply release less than is required by the market. There are a number of reasons, but one reason could be profit, to keep the price artificially high, a bit like OPEC restrict oil production/supply when the price drops too low.

Does not rationing generally imply some sort of equality in distribution?

doire_2

Conrad wrote: »

Your'e pleased more and more would be owners are forced to make landlords rich?

No. Im pleased that at last the banks have woken up to sensible lending.

Can you,hamish and co stop bleating on about the poor down trodden FTB. Its not hard to see through why you want the banks to turn the easy credit taps back on.

Percy1983

Conrad wrote: »

Your'e pleased more and more would be owners are forced to make landlords rich?

We know Hamish wants rental income and HPI but this 'rationing' his killing is HPI chances.

I am would be owner and don't feel forced to enrich a landlord.

FTBFun

doire wrote: »

No. Im pleased that at last the banks have woken up to sensible lending.

It is arguable they've gone a little too far the other way, though.

Conrad

Percy1983 wrote: »

We know Hamish wants rental income and HPI but this 'rationing' his killing is HPI chances.

I am would be owner and don't feel forced to enrich a landlord.

So how do you explain the CML figures showing a considerable and inexorable increase in the number of B2L mortgage since 2007, if lanlords aren't making hay?

HPI is only one part of the investment case, and if it doesn't feature, who cares, as long as yields against debt service costs are so substantial?

By all means keep cheering the handover of property to landlords, if thats what turns you on.

Road_Hog

ILW wrote: »

Does not rationing generally imply some sort of equality in distribution?

Not really. Quite often rationing means only the rich can afford to pay the increased price driven by lack of supply.

For example, when one hears the phrase 'rationing', one tends to think about food rationing during the Second World War. However, food was not rationed in restaurants, therefore if you could afford the wartime increased restaurant prices, you could eat very well.

If you think that was equitable, then your statement is correct. However that is not my definition of equitable and therefore I disagree with your statement.

To give you a more on topic example would be housing and the housing new build shortage. There isn't a shortage, it's just being rationed because the demand is low (at the market price) therefore the house builders have no incentive to build until demand (at market prices) picks up. There may be many factors effecting demand (such as mortgage supply) but that is no concern of the builders, they're interested in the symptom not the cause.

http://www.telegraph.co.uk/earth/hands-off-our-land/8763931/Hands-Off-Our-Land-the-300000-new-homes-already-in-the-bank.html

Now, if you're in the market for a large detached multi-bedroomed property with cash to match, then I'm sure you'll find that there isn't too much rationing going on there. However if you want a cheap starter home then I think you'll find that rationing is very much in force.

ILW

It is purely a matter of symantics, my opinion is just that rationing is not the best word for the current mortgage situation. As said earlier "cherry picking" seems a better definition.

abaxas

HAMISH_MCTAVISH wrote: »

Mortgage rationing continues.

Or in the real world....

The continued recovery in mortgage underwriting shows no signs if being derailed.

Percy1983

Conrad wrote: »

So how do you explain the CML figures showing a considerable and inexorable increase in the number of B2L mortgage since 2007, if lanlords aren't making hay?

By all means yes there is still money to be made, just point out many want good yields AND HPI.