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Debate House Prices
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There could be a high price for creating a price boom
Comments
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HAMISH_MCTAVISH wrote: »Did you manage to borrow that £3K form your mum then?:rotfl:
Is that the best you can do? You do not disagree with anything then? Or should I say you can not reason why? You keep looking at the world through rose tinted specs :T Green shoots and all?real50pcclub0 -
HAMISH_MCTAVISH wrote: »Did you manage to borrow that £3K form your mum then?:rotfl:
Didn't you do similar?0 -
bulccp05laer wrote: »Is that the best you can do?
Hows that Silver investment working out now that it's down over 50%?
Why aren't people lining up to take it off your hands at way above peak price, now that the government has issued billions and billions more units of currency?
If the currency has devalued, and Silver has devalued even more against the currency, how awful an investment did that make Silver?:rotfl:“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 -
grizzly1911 wrote: »Couldn't you take a higher rate and swerve the ERP?
You seem to be thinking that there is an abundance of Self Build Mortgage products available.
That is my point, there is not the choice and availability there was 6 months ago.
This is restricting options for those that want to build their own properties.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »Are they?
I'm trying to build a house and whilst I found some parts easier than expected (planning permission, building warrants etc), I've found the self build mortgage market collapse in the last 6 months.
The availability of self build mortgage products is so restricted, that even though I own the land and have a 40% deposit for the building costs, I'm still likely to be hit with a circa £3,000 arrangement fee and interest rates almost 3 times what I could in the conventional market.
From that perspective, it's not encouraging building new properties.
That sounds like a reasonable reflection of the risk the bank's taking on. Once you've finished you can remortgage and get a proper rate.
It's hardly the Government's job to subsidise your new build, merely to have laws that allow it.0 -
It's hardly the Government's job to subsidise your new build, merely to have laws that allow it.
It is however the government's job to ensure that dysfunctional markets are restored to functionality, and to create a regulatory environment where effective competition amongst lenders is established for the benefit of the consumer.
You could argue they have failed on both those counts with the mainstream mortgage/lending markets, let alone with specialist lending like self-build.“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: »It is however the government's job to ensure that dysfunctional markets are restored to functionality, and to create a regulatory environment where effective competition amongst lenders is established for the benefit of the consumer.
You could argue they have failed on both those counts with the mainstream mortgage/lending markets, let alone with specialist lending like self-build.
The problem is the banks is the 'push you-pull me' approach to regulation.
We want banks to carry on lending at old levels while taking fewer risks. We can't have both as they're mutually exclusive.
TBH, the only solution under Basel 3 that is feasible would be some kind of Fannie Mae/Freddie Mac arrangement where conforming loans would be bought by the Government at a small discount.
The better idea would be to tear up Basel 3 and make banks back into unlimited liability partnerships but then what do I know?0 -
That sounds like a reasonable reflection of the risk the bank's taking on. Once you've finished you can remortgage and get a proper rate.
It's hardly the Government's job to subsidise your new build, merely to have laws that allow it.
Generali,
I'm not asking the government to subsidise my new build.
I'm simply articulating that the availability of mortgage products has significantly shrunk in the last 6 months.
This at a time when they are apparently trying to encourage homebuilding.
With regards to risk, I'm requesting a less than 50% LTV whilst owning the land outright.
The level of risk is far lower than most mortgage products are geared to, yet the costs (which were comparible 6 months ago) are now worse than 90% LTV deals.:wall:
What we've got here is....... failure to communicate.
Some men you just can't reach.
:wall:0 -
IveSeenTheLight wrote: »Generali,
I'm not asking the government to subsidise my new build.
I'm simply articulating that the availability of mortgage products has significantly shrunk in the last 6 months.
This at a time when they are apparently trying to encourage homebuilding.
With regards to risk, I'm requesting a less than 50% LTV whilst owning the land outright.
The level of risk is far lower than most mortgage products are geared to, yet the costs (which were comparible 6 months ago) are now worse than 90% LTV deals.
My apologies. When you said that the Government wasn't encouraging new builds because you had to pay a lot for your mortgage I took the mental leap that you expected them to do something about it.0 -
We want banks to carry on lending at old levels while taking fewer risks.
We can't have both as they're mutually exclusive.
Given that UK banks lost £15 on overseas mortgages for every £1 they lost here, and that mortgage losses of just 1/16th what they were would hardly have required a bailout of much significance, I think the risk issue around UK mortgage lending standards has been seriously overplayed.“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
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