"It shows funding for lending is working"

HAMISH_MCTAVISH

DervProf wrote: »

He obviously thought this was an entirely positive thing,

It mostly was....

and was fishing for votes.

And it worked.

It'll work again too... which is why I fear the recovery may be too late for the Tories and we'll be stuck with another 15 years of Labour after the next election.

HAMISH_MCTAVISH

Graham_Devon wrote: »

Then stop banging on about rationing!!!!

Stop suggesting lenders should have lending targets with fines imposed if they don't reach them!!!!

It is the job of regulators and governments to fix broken and dysfunctional markets.

When credit is rationed even to creditworthy borrowers, as is the case today, then it is the job of government to fix that problem.

Graham_Devon

HAMISH_MCTAVISH wrote: »

It is the job of regulators and governments to fix broken and dysfunctional markets.

When credit is rationed even to creditworthy borrowers, as is the case today, then it is the job of government to fix that problem.

It was just a market a moment ago, where supply and demand dictated the setting of prices.

Now you have come back and said "it's a broken / dysfunctional market".

It's only disfunctional when it isn't going the way you want it to.

You can't say both things Hamish, you are tripping over both of your feet when you do this. Either it's a market where supply and demand sets prices, or it's a market where that's not the case and you intervene with the supply and demand to create the direction.

You certainly can't have it both ways dependant upon the point you wish to achieve.

shortchanged_2

Hamish you know perfectly well that the current house prices are being propped up by a variety of things such as low interest rates, lender forbearance etc so we are not exactly seeing true market conditions now are we.

And yes FTB's are frozen out because of these reasons. The props are helping to keep house prices high and now the banks won't lend to pay these silly amounts anymore.

HAMISH_MCTAVISH

Graham_Devon wrote: »

It was just a market a moment ago, where supply and demand dictated the setting of prices.

Now you have come back and said "it's a broken / dysfunctional market". .

You still can't read.... Remarkable.

You can't try to muddle the issue by confusing the housing market, (which is only held back by artificially restricted lending), with the lending market, which is completely broken.

Builders are happy to build houses, and have several years supply of land, if buyers could get mortgages.

Perfectly creditworthy buyers cannot get mortgages however, so that needs to be fixed.

Simples.

HAMISH_MCTAVISH

shortchanged wrote: »

Hamish you know perfectly well that the current house prices are being propped up by a variety of things such as low interest rates, lender forbearance etc so we are not exactly seeing true market conditions now are we.

And yes FTB's are frozen out because of these reasons. The props are helping to keep house prices high and now the banks won't lend to pay these silly amounts anymore.

Wrong again Shorty....

The market is being artificially kept down by absurdly restricted lenidng, and FTB-s are being frozen out thanks to mortgage rationing, not prices.

shortchanged_2

HAMISH_MCTAVISH wrote: »

Wrong again Shorty....

The market is being artificially kept down by absurdly restricted lenidng, and FTB-s are being frozen out thanks to mortgage rationing, not prices.

Yes to an extent Hamish. But to loosen lending in combination with ultra low interest rates is a recipe for disaster because we all know how 'affordable' houses would be in the short term.

And seeing as the BoE doesn't consider housing as a part of it's remit when setting base rates :whistle: the economy needs to recover before the banks open the lending floodgates again, but lets hope they are more sensible this time around.

Graham_Devon

HAMISH_MCTAVISH wrote: »

You still can't read.... Remarkable.

You can't try to muddle the issue by confusing the housing market, (which is only held back by artificially restricted lending), with the lending market, which is completely broken.

Builders are happy to build houses, and have several years supply of land, if buyers could get mortgages.

Perfectly creditworthy buyers cannot get mortgages however, so that needs to be fixed.

Simples.

Oh, I've raised a point based on what you said....therefore I'm muddling...... again.

Remarkable! It's the same defence trotted out every single time!

HAMISH_MCTAVISH

shortchanged wrote: »

Yes to an extent Hamish. But to loosen lending in combination with ultra low interest rates is a recipe for disaster because we all know how 'affordable' houses would be in the short term.

But we don't have "ultra low interest rates" for new buyers!!!

Particularly not for FTB-s with 10% deposits!!!

Crack on with unlimited lending at normal 5% plus rates to FTB-s with decent jobs/credit scores at 10% deposits. No reason those mortgage rates should rise markedly when base rates do.

Indeed, the governor of the BOE has already said they shouldn't rise much, but rather that the gap between the two will decrease instead.

For that matter, you can already get a 25 year fix at slightly over 5% with a 20% deposit. Make that available to FTB-s with 10% deposits and job done!

And then more houses will get built, more furnishings/white goods/etc will get sold, more people will be employed, the economy will recover, and everyone's a winner.

Loughton_Monkey

HAMISH_MCTAVISH wrote: »

.....Make that available to FTB-s with 10% deposits and job done!

And then more houses will get built, more furnishings/white goods/etc will get sold, more people will be employed, the economy will recover, and everyone's a winner.

Sorted!

Ever thought of becoming Chancellor, Hamish?