new lending crackdown means lower UK house prices

IveSeenTheLight

Graham_Devon wrote: »

Who offers them then?

The first result on your search gives Ray Boulger backing up 35 year interest only mortgages in 2006. He's a silly boy.

Ha, you'd be screwed by now following that fools advice....who would you remortgage with?!

Another of his insights...He sounds liek MrRee.

Thanks for the link ISTL

There's more to one link in the web search.
P.S. I've never quoted Ray Boulger. You take his words as you like.

Another link shows

Lenders offering 30, 35, 40 year mortgages
Many lenders - catch up with a mortgage advisor for help.



30, 35, 40 year mortgages advice
Find out more about long term mortgages by requesting co-commitment mortgage advice.

I'm not interested in those products so have not followed up on them.
If you are genuinely interested, follow the links

Personally I don;t think they are a good idea as it simply means your paying of the capital slower and thus paying far more interest.

Graham_Devon

IveSeenTheLight wrote: »

There's more to one link in the web search.

Indeed. The one you have picked states:

Lenders offering 30, 35, 40 year mortgages
Many lenders - catch up with a mortgage advisor for help.

That's exactly what I did. Asked a mortgage advisor. :doh:

Anything else you wish to muscle in on and advise I do exactly what I did?

The-Joker

moneyinmypocket wrote: »

Joker by name joker by nature

House prices are the engine of the economy

macaque wrote: »

Like the furniture in a burning house.

Ha very true, this house price bear market is damaging everything on its way down.

Everything has been tried to prop up house prices there are no more bullets left to fire.

Inflation will force interest rates back up soon and then we will have an end to cheap easy credit, which will be the final straw that breaks the back.



Yes we do still have cheap easy credit, first we will see it getting harder as lending is restricted even more. Then we will see an end to low IRs maybe around 2014, this will then set new records for repossessions filling the auction houses.

The-Joker

What about the example of Sam Collett in investor chronical magazine . A typical BTL landlord.

Her loan costs will go up £196 per month.

She is typical BTL landlord already the victim of earlier rate increases.

The point is, this is nothing, we still have cheap easy credit still with us.

As the article points out most mortgages are still under 4.5% compared with 30yr average of 8.4%.

Its a case of when rates start to normalise not if.

Thrugelmir

The-Joker wrote: »

What about the example of Sam Collett in investor chronical magazine . A typical BTL landlord.

Her loan costs will go up £196 per month.

She is typical BTL landlord already the victim of earlier rate increases.

The point is, this is nothing, we still have cheap easy credit still with us.

As the article points out most mortgages are still under 4.5% compared with 30yr average of 8.4%.

Its a case of when rates start to normalise not if.

Running a business so this should have been factored in to her business plan.

If he's not using the after tax profit to reduce his mortgage but subsidising his lifestyle instead. Then he's foolish.

The-Joker

Thrugelmir wrote: »

Running a business so this should have been factored in to her business plan.

If he's not using the after tax profit to reduce his mortgage but subsidising his lifestyle instead. Then he's foolish.

First time you refer to Sam as her, then you call her him.

Any way yes you are admiting that its a very dangerous time to be in BTL. Cost of borrowing will only be going one way in years to come, and property is still in a bear market the bottom looks some way off.

Thrugelmir

The-Joker wrote: »

First time you refer to Sam as her, then you call her him.

I've no idea which. Do you?

The-Joker

Hamish wrote: »

Hamish predictions

Gold @ $500 an Oz...in a Bubble
Gold @ $700 an Oz...in a Bubble
Gold @ $900 an Oz...in a Bubble
Gold @ $1100 an Oz.in a Bubble
Gold @ $1300 an Oz..in a Bubble
Gold @ $1700 an Oz..in a Bubble
GOLD HITS $2K is in a bubble
Gold @ $1500 Bubble.
Gold @ $ 1774 an Oz(24/02/2012) in a Bubble
All this talk of Gold and silver being in a bubble means only one thing...i can buy more as Idiots think its in a Bubble!Talk about the "Haves" and the "Have Nots" !

What do the gold and silver bullion bears think, is it in a bubble still? Will it still be in a few years when the prices have doubled again?

michaels

Could you not post exactly equivalent figures and bubble claims for house prices? Kettle and pot.

The-Joker wrote: »

Hamish predictions

Gold @ $500 an Oz...in a Bubble
Gold @ $700 an Oz...in a Bubble
Gold @ $900 an Oz...in a Bubble
Gold @ $1100 an Oz.in a Bubble
Gold @ $1300 an Oz..in a Bubble
Gold @ $1700 an Oz..in a Bubble
GOLD HITS $2K is in a bubble
Gold @ $1500 Bubble.
Gold @ $ 1774 an Oz(24/02/2012) in a Bubble
All this talk of Gold and silver being in a bubble means only one thing...i can buy more as Idiots think its in a Bubble!Talk about the "Haves" and the "Have Nots" !

michaels

I don't understand - I would rather lend to a borrower with 40% equity and no repayment vehicle than one with 10% equity paying back a fraction a year of equity over 30 years. I can't see why the former is considered to be the most risky thing a bank could ever do and the later business as usual.

There seems to be a general consensus that I am wrong but no one has explained it to me yet.