House price fall hits hopes of remortgaging for millions

Graham_Devon

HAMISH_MCTAVISH wrote: »

Banks price high LTV mortgages the way they do not because they think prices will fall, but because they are forced to because of new capital adequacy regulations requiring them to withhold 6 times as much capital for a 95% loan as for a 60% loan.

Stephen Hester not long back referenced the possibility of falling asset values as a prime reason for vigourously checking high LTV mortgages. Was all in response to the furore over lending more, but banks being told to have reserves etc.

Based on what you now say, he's a liar?

NEO72

HAMISH_MCTAVISH wrote: »

The high prices on 90% mortgages eliminates most potential FTB-s, and then banks reject a majority of applicants on top of that.

I'm sure like most of your assertions, this is based on strong evidence - you can just post the link and I'll take a peek myself eh?

HAMISH_MCTAVISH wrote: »

Banks price high LTV mortgages the way they do not because they think prices will fall, but because they are forced to because of new capital adequacy regulations requiring them to withhold 6 times as much capital for a 95% loan as for a 60% loan.

Hence why I said:

Its at least partly because they are pricing in the risk of falling prices

HAMISH_MCTAVISH wrote: »

Unless the government changes the rules, and intervenes to significantly increase lending, then FTB-s will remain just as screwed even if prices fall.

And of course your concern is completely altruistic and not at all based on the fact that with no new entrants to the ponzi, those last in such as yourself will lose out. Gee what a guy!

Mr._Pricklepants

RenovationMan wrote: »

I have seen thrugelmir give this sort of 'advice' before and this time it cost someone money.

I have noticed the same with brit1234 in the house buying forum a couple of times. Giving potential FTBs 'advice' to hold off from house purchases on several occasions.
We all know brit as the laughing stock of this discussion forum with his ludicrous forecasts, but when those guys start giving 'advice' in the other forums they should be picked up on it, and swiftly. It's about real lives, real people, real money there.

RenovationMan

Mr._Pricklepants wrote: »

I have noticed the same with brit1234 in the house buying forum a couple of times. Giving potential FTBs 'advice' to hold off from house purchases on several occasions.
We all know brit as the laughing stock of this discussion forum with his ludicrous forecasts, but when those guys start giving 'advice' in the other forums they should be picked up on it, and swiftly. It's about real lives, real people, real money there.

People need to try and remember what MSE is really all about - it's people with problems helping each other. This forum is for discussion and it's hidden, so the regulars can climb onto their hobby horses and push their VI as much as they like. If they start doing this on the 'advice' forums then they need to be picked up.

chewmylegoff

RenovationMan wrote: »

People need to try and remember what MSE is really all about - it's people with problems helping each other. This forum is for discussion and it's hidden, so the regulars can climb onto their hobby horses and push their VI as much as they like. If they start doing this on the 'advice' forums then they need to be picked up.

surely as long as you are not disingenuous in whatever 'advice' you give, then there isn't a problem. i've seen brit pedal what i think is nonsense on multiple occassions on the house buying and renting board, but i'm sure, given brit's posting history, that brit genuinely believes what he/she is saying is true. you can be wrong without deliberately trying to mislead and cause harm to others.

if anyone takes on board any 'advice' from an internet forum in respect of anything important without checking it properly then they deserve all they get anyway. there are a fascinating number of people on here who want to engage in complex financial transactions who seem unwilling to seek proper legal/financial advice and would much rather listen to the ramblings of idiots on the internet.

MacMickster

And the moderators response was to remind people that this is a forum for people to give opinions and they should check any opinion given before acting on it.

A forum would be pretty pointless if everyone always agreed with everything said.

The only people on here who seem to claim specialist knowledge when replying to posts are those who state that they are mortgage advisors - and even then MSE publish a disclaimer. Most seem to be what they claim, but some (The J for example) appear to express rather bizarre views.

RenovationMan

MacMickster wrote: »

And the moderators response was to remind people that this is a forum for people to give opinions and they should check any opinion given before acting on it.

A forum would be pretty pointless if everyone always agreed with everything said.

The only people on here who seem to claim specialist knowledge when replying to posts are those who state that they are mortgage advisors - and even then MSE publish a disclaimer. Most seem to be what they claim, but some (The J for example) appear to express rather bizarre views.

Exactly, so the mods dealt with it. I'm sure if further complaints are heard they will deal with those, possibly more harshly. If you don't raise these issues than nothing gets done.

As I said, it's often easy to tell the cranks, but not every time and especially not for newbies who might not have seen the crank's posting history.

As an aside, if the 'bear' gang had a problem with what I posted on that thread, then why not respond on that thread? Surely thy're not so afraid of moving to a different board away from their 'backup' tag team?

grizzly1911

RenovationMan wrote: »

The incentive is there for the banks to undervalue properties and to force homeowners to move to higher mortgage rates - increasing the bank's profit for lending the same amount of money. One wonders if this will become the next miss-selling scandal?

The incentive for the bank is to err on the safe side not to over egg the valuation. Always has been always will. If you want something overvalued go and see an estate agent.

The fact that the property may not be valued for as much as you like is the reality check. If you don't like it shop around see if anyone else agrees with you.

If there is greater risk then yes the cost to borrow will increase. No different to any other insurance premium. Just because they are lending the same amount of money doesn't mean to say the risk profile hasn't changed especially when you are in the75%+ LTV arena.

Difficult to see how it could be miss-selling, they are just pricing against the way they perceive risk. That price will be different between institutions. If they are out of line then the borrower can look elsewhere.

NB:- you does not refer to you personally.;)

mystic_trev

Mr._Pricklepants wrote: »

I have noticed the same with brit1234 in the house buying forum a couple of times. Giving potential FTBs 'advice' to hold off from house purchases on several occasions.
We all know brit as the laughing stock of this discussion forum with his ludicrous forecasts, but when those guys start giving 'advice' in the other forums they should be picked up on it, and swiftly. It's about real lives, real people, real money there.

That's pointless, what about your 'friend';) MrRee telling people to buy now, house prices are only going up, that's advice too, and they're many more like him. If anyones dim enough to take advice from someone on the internet without doing their own research, tough luck.

Percy1983

I must have been really lucky to have got a 90% mortgage.