Looks like my prediction of a tougher 2012 is becoming mainstream

RenovationMan

useless_git_requires_wife wrote: »

<TARDIS PIC>

Oh. Is that geneer on another house purchase? Going back to 2000 to buy a BTL?

Cleaver

shortchanged wrote: »

Well if mortgage lending remains sensible (pre boom levels) added to eventual interest rate rises I don't really see house prices going up. As long as banks don't open the floodgates and mess things up again then over time hopefully we will see prices come back in line more with earnings, not the ridiculous situations for example where we have people earning £20,000 and having £100,000+ mortgages etc, etc.

Most people taking out mortgages didn't borrow five times their salary though, did they?

RenovationMan

Cleaver wrote: »

Most people taking out mortgages didn't borrow five times their salary though, did they?

I did! So far, so the best thing I ever did.

Cleaver

RenovationMan wrote: »

I did! So far, so the best thing I ever did.

The best thing you ever did was get a loan?

RenovationMan

Cleaver wrote: »

The best thing you ever did was get a loan?

Kinda, because the loan allowed us to get the house and the house has opened up other avenues for us. Not least enough land to have our own allotment/small holding on to grow veggies. We had a decent crop last year and have only just run out of plum jam.

Loans are a means to an end. If used wisely they can enhance your entire life.

Cleaver

RenovationMan wrote: »

Kinda, because the loan allowed us to get the house and the house has opened up other avenues for us. Not least enough land to have our own allotment/small holding on to grow veggies. We had a decent crop last year and have only just run out of plum jam.

You can grow veggies without a loan.

RenovationMan

Cleaver wrote: »

You can grow veggies without a loan.

Do I really need to provide you with the long list of life enhancing factors realised by our decision to buy a farmhouse in a rural village?

homelessskilledworker

julieq wrote: »

For two reasons. Firstly I think there will be increasing political pressure to increase lending to first time buyers, and secondly because it makes commercial sense that lenders start lending. Hardly going to be an opening of the floodgates, but we're talking about small incremental improvements combining.

Point taken, but should any government been seen to have stuck their noses in something that causes the taxpayer to bail out lenders to the tune of £100 Billions again, they might as well say hello to 15 years of oppostion.

Fact is Banks are not lending anything like pre 2007 because they are scared, also government are not getting involved for the same reason.

And what are they fearfull of, a property crash, there can be no other reason.

Dan:_4

homelessskilledworker wrote: »

Point taken, but should any government been seen to have stuck their noses in something that causes the taxpayer to bail out lenders to the tune of £100 Billions again, they might as well say hello to 15 years of oppostion.

Fact is Banks are not lending anything like pre 2007 because they are scared, also government are not getting involved for the same reason.

And what are they fearfull of, a property crash, there can be no other reason.

Banks are not scared of lending - just skint. Same goes for the Government.

shortchanged_2

Cleaver wrote: »

Most people taking out mortgages didn't borrow five times their salary though, did they?

But many first time buyers needed these sorts of multiples to get on the ladder. People further up the ladder usually gained from the extra equity during the rampant HPI.

This is where the problem stems from now. There is a stagnant, slowly dropping market. So to move up the ladder now people have to usually take a larger mortgage out but with banks being stricter with their lending this is becoming more difficult.
The same problem exists with FTB's in that they have been frozen out of the market because house prices remain high, therefore many FTB's can't get mortgages large enough with the current lending criteria to purchase a house.