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Debate House Prices
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Funding for Lending failing miserably...
Comments
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HAMISH_MCTAVISH wrote: »Millions of creditworthy people want to borrow, but can't get loans.
Well, had the banks behaved more responsibly up until 2007 (or the FSA/Government had acted to make the banks "behave"), then maybe the banks would be in a better position to lend today.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
HAMISH_MCTAVISH wrote: »Millions of creditworthy people want to borrow, but can't get loans.
Just 1.8% of mortgages issued last year were for 10% or lower deposits.
That tells you all you need to know.
Banks still rationing mortgage lending with absurd deposit levels well above the 5% to 10% that is historically normal, sensible and prudent.
Every day I get cases declined where it is stated the application is at odds with core lending PRINCIPLES as laid down by the FSA.
No one in Gov't recognises this.0 -
Well, had the banks behaved more responsibly up until 2007 (or the FSA/Government had acted to make the banks "behave"), then maybe the banks would be in a better position to lend today.
The vast majority of UK lending pre-2007 was extremely responsible.
As evidenced by the extremely low arrears and default rates, despite the wider economic crisis, high unemployment, and banks profiteering by raising mortgage rates and SVR-s to subvert the intent of the BOE for low rates.
Remember, UK banks lost £15 on overseas mortgages for every £1 they lost in the UK.
It was not UK mortgage lending standards that caused the problem.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »The vast majority of UK lending pre-2007 was extremely responsible.
As evidenced by the extremely low arrears and default rates, despite the wider economic crisis, high unemployment, and banks profiteering by raising mortgage rates and SVR-s to subvert the intent of the BOE for low rates.
Remember, UK banks lost £15 on overseas mortgages for every £1 they lost in the UK.
It was not UK mortgage lending standards that caused the problem.
Surely the evidence of low arrears and default rates might have something to do with a record low base rate and a "go easy" approach to those who are falling behind on their repayments.
High unemployement. If loads of people with mortgages have become long term unemployed, then arrears and defaults would be much higher. The only conclusion I can draw is that many of the people who have become unemplyed did not have a mortgage, or only a small one. Maybe some had mortgage protection insurance.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
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Surely the evidence of low arrears and default rates might have something to do with a record low base rate and a "go easy" approach to those who are falling behind on their repayments.
Not when banks are profiteering by raising mortgage rates and SVR-s to subvert the intent of the BOE for low rates.
Remember all the articles posted here when the banks started putting up SVR rates, claiming that this would be the nail in the coffin for house prices?
I do....;)“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Every day I get cases declined where it is stated the application is at odds with core lending PRINCIPLES as laid down by the FSA.
No one in Gov't recognises this.
What sort of principles?
Are they all nonsensical or or are they based on some sensible one too?
LTV, deposit, repayment sustainability, property suitability?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
HAMISH_MCTAVISH wrote: »
Banks still rationing mortgage lending with absurd deposit levels well above the 5% to 10% that is historically normal, sensible and prudent.
95% isn't sensible and prudent it is a a real risk even 10% is risky just less so."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
HAMISH_MCTAVISH wrote: »Millions of creditworthy people want to borrow, but can't get loans.
Right.
So they are not creditworthy then.
Your problem Hamish is simple. You see the pinicle of lax lending and the pinicle of high prices as being "normal" and you want it back. I mean, really want it back.
It's not normal. Normal is somewhere between the pinicle and the old days of trundling off to grovel face to face with your bank manager pouring over your bank account with a fine tooth comb.0 -
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