Official. No more Liar loans. Celf cert banned.

leveller2911

Dan: wrote: »

Self Cert was introduced for people who are self employed and do not have regular pay slips.

After 12 months self employed fill out a tax return and when accepted by HMRC have proof of income.. Its very easy really nothing difficult in proving earnings........Self cert was a form of fast tracking which in turn propped up the housing bubble IMO..........

shortchanged_2

HAMISH_MCTAVISH wrote: »

So then why have ultra-low interest rates done no good at all for Ireland and the USA?

Ireland down 48% from peak and still falling. USA down 38% from peak and still falling.

UK down just 10% from peak and effectively stable for over 2 years now.

All three countries had ultra-low rates, help for homeowners, bank bailouts, liquidity support, etc.

Because in Ireland the property bubble was much, much worse than the UK, therefore there is going to be a much greater correction.

The_White_Horse

newDude wrote: »

Yes they have, so get your facts strait.

your spelling is dire

brit1234

HAMISH_MCTAVISH wrote: »

But the truth is that as always the bears like to take a tiny problem and inflate it out of all proportion to reality.

So Hamish on the TV program how many Ealing mortgage brokers encouraged the potential home buyer to inflate his salary from £30k to £52k+?

You use the world tiny problem, so by tiny do you mean one broker out of ten? One in ten is pretty smallish, still a problem though. However the show showed it was more than one in ten. More like all of them, that's a 100%.

So Hamish if 100% of Ealing mortgage brokers are encouraging people on an average salary to inflate their salaries is that a tiny problem or a giant one?

Tiny, my !!!!.:rotfl:

brit1234

shortchanged wrote: »

Because in Ireland the property bubble was much, much worse than the UK, therefore there is going to be a much greater correction.

However the UK bubble was bigger than the US. However the US was 2 years ahead of us with the crash and it took them by surprise as they were first hit. Our vested interests got together far quicker with the advance warning and gave us the dead cat bounce. However that is over now and UK prices are crashing again.

Constant temporary measures won't stop the pain just delay and elongate it.

DervProf

http://www.youtube.com/watch?v=vT1UnGS91BY

I suspect that those who could and should have took action to prevent this sort of practice where out when it was broadcast, or thought that the programme makers were just lucky to have caught a few cases of dodgy dealings.

wotsthat

geneer wrote: »

Self cert and sup prime. Dress it up any way you like but basically people taking on loans they couldn't reasonably afford.

Where's the evidence? Sounds like a geneer meme.

I'd expect that arrears rates would be on the increase if significant numbers had been in receipt of loans they couldn't afford.

StevieJ

leveller2911 wrote: »

I would flip that question back at you and ask If you can afford the loan why would you need self cert as opposed to the usual affordability checks?..

With self cert there was a distinct lack of honesty......... Human nature i'm afraid

I will flip that back to you 'why would a bank lend money to someone who can't afford to pay it back after the experience of 2007-2008? just wondered

ruggedtoast

HAMISH_MCTAVISH wrote: »

But ultimately to see how big a nonsense this whole issue of self-cert is, and how little impact it had on the market, you don't need to look any further than the fact house prices are now just 10% below peak and stable despite the fact these mortgages haven't been issued for almost 2 years now.

10% on an average house in the SE is about £20,000. I know twenty grand is a mere trifle in Aberdeen, but down here that's quite a lot of money to lose without much hope of any rises on the horizon.

ukcarper

ruggedtoast wrote: »

10% on an average house in the SE is about £20,000. I know twenty grand is a mere trifle in Aberdeen, but down here that's quite a lot of money to lose without much hope of any rises on the horizon.

how much is 4 years rent in the southeast?