Halifax -0.5% MoM -2.3% YoY

Dan:_4

nearlynew wrote: »

Lower prices are a good thing all round.

Nothing will be fixed until prices fall, the over-leveraged take the hit and banks are allowed to fail.

You can't let the banks fail - it will cause far worse problems then house price falls.

wotsthat

Originally Posted by HAMISH_MCTAVISH
Also worth noting that typical mortgage payments for a new borrower have fallen from 48% of average disposable earnings in mid 2007 to 26% in 2011 Quarter 3.

This is significantly below the average of 37% over the past 25 years and is at its lowest since 1997.

Graham_Devon wrote: »

Not really surprising with only the higher earners able to secure a mortgage.

Halifax use average disposable earnings to get the 26% figure NOT the average earnings of the people they've given mortgages to.

It might be correct to say that the average recipient of a mortgage is richer than the average person but incorrect to say this is skewing the affordability calculation downwards.

Housing (buying) is as affordable as it has been since 1997.

Graham_Devon

wotsthat wrote: »

Halifax use average disposable earnings to get the 26% figure NOT the average earnings of the people they've given mortgages to.

Evidence? Proof?

Seems a bit strange to say "a new borrower" and talk about the mortgage payments of that new borrower if that's not what they mean.

wotsthat

Graham_Devon wrote: »

Evidence? Proof?

Seems a bit strange to say "a new borrower" if that's not what they mean.

It's what Halifax say in the press release..

Don't know what new borrower means. A new customer I suppose rather than someone remortgaging from one halifax mortgage to another?

Typical mortgage payments for a new borrower have fallen from a peak of 48% of average disposable earnings in mid 2007 to 26% in 2011 Quarter 3. This is significantly below the average of 37% over the past 25 years and is at its lowest since 1997.

Really2

nearlynew wrote: »

Nothing will be fixed until prices fall, the over-leveraged take the hit and banks are allowed to fail.

Does that not mean anyone with savings takes a hit also, of all their savings?

Before anyone says the government cover them, if the banks fail, they won't. They could not afford too.

Graham_Devon

wotsthat wrote: »

It's what Halifax say in the press release..

Don't know what new borrower means. A new customer I suppose rather than someone remortgaging from one halifax mortgage to another?

You have totally contradicted yourself.

Higher earners will have higher disposable income. It's also likely they can afford a lower LTV, meaning they have lower mortgage payments.

Stop trying so hard.

abaxas

wotsthat wrote: »

Halifax use average disposable earnings to get the 26% figure NOT the average earnings of the people they've given mortgages to.

It might be correct to say that the average recipient of a mortgage is richer than the average person but incorrect to say this is skewing the affordability calculation downwards.

Housing (buying) is as affordable as it has been since 1997.

Buying a house is NOT the same as paying a mortgage.

It may be as affordable in terms of mortgage payments, but there is a much larger cost of entry.

JonnyBravo

Graham_Devon wrote: »

Not really surprising with only the higher earners able to secure a mortgage.

While you will bang on about rationing, it more to do with high prices.

So why didn't this apply when prices were even higher?

Graham_Devon

JonnyBravo wrote: »

So why didn't this apply when prices were even higher?

It did. But Hamish refers to it as "penalising the poor".

It's not banks who are penalising the poor for fun. They simply won't lend what they used to, and I doubt they would be allowed even if they tried.

Really2

Graham_Devon wrote: »

The support is merely dragging the whole process out. Gravity is too strong. It's become a game of how long can interest rates stay low, as we all know deep down, when that changes, the current status quo is !!!!ed.

Why do people keep banging on about interest rates, they wont move until the economy looks better or in the unlikely event QE causes a wage spiral.
Both would in general be more beneficial to owners than the current situation.