Funding for Lending on mortgages is ended

Loughton_Monkey

Graham_Devon wrote: »

.....If you would just stop creating scenarios, inventing imaginary situations (and this goes for chucky and loughton too) things would be a lot easier around here. This nitpicking, the outright pedantry and continual creation of slurs is boring. You keep having to say "I think you", "I imagine you", I suspect you".

Theres something wrong there when you have to keep using those words in front of your explanation of what you believe i have said. I don't do it to you, and there are plenty of other posters who I would imagine don't particularly like each thread being taken up by this same stuff.

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

Ashamed to admit it, but I really did wet myself on this one!

Keep 'em coming......

:T:T:T

Thrugelmir

wotsthat wrote: »

Latest Land Reg data shows an annual increase of 3.1%.

What's that? Six years where house prices have fallen in real terms.

I really don't understand the hysteria.

More worryingly is the nature of growth in the UK. Too consumer focused. One imagines that this is the BOE influencing financial stability for once. BOE has no political allegiance. So can counter pre general election games. Under Carney's stewardship looks like we can expect a more pro business style from the BOE. With hindsight King was overly focused on inflation. Rather than the wider health of the economy. In particular business investment.

wotsthat

Thrugelmir wrote: »

More worryingly is the nature of growth in the UK. Too consumer focused. One imagines that this is the BOE influencing financial stability for once. BOE has no political allegiance. So can counter pre general election games. Under Carney's stewardship looks like we can expect a more pro business style from the BOE. With hindsight King was overly focused on inflation. Rather than the wider health of the economy. In particular business investment.

To be honest I struggle to worry about unbalanced growth too. I just look at Greece or travel to Portugal and realise that, at this stage of the recovery, it's like complaining about the colour of the icing on the cake.

Mark Carney is doing the same as King and thats ensuring the BoE remain steady and reliable. I look at headlines about how Carney has criticised or slighted Osborne and then look at the words he's used and you can see it's just made up. He must be wondering why we're mad about house prices. To paraphrase the stability report 'Canada has half the population and builds twice the number of homes. If everyone is so worried about bubbles isn't the answer bleeding obvious?'

the_flying_pig

http://coppolacomment.blogspot.co.uk/2013/11/fls-and-bank-of-englands-independence.html

Scrootum

wotsthat wrote: »

To be honest I struggle to worry about unbalanced growth too. I just look at Greece or travel to Portugal and realise that, at this stage of the recovery, it's like complaining about the colour of the icing on the cake.

Mark Carney is doing the same as King and thats ensuring the BoE remain steady and reliable. I look at headlines about how Carney has criticised or slighted Osborne and then look at the words he's used and you can see it's just made up. He must be wondering why we're mad about house prices. To paraphrase the stability report 'Canada has half the population and builds twice the number of homes. If everyone is so worried about bubbles isn't the answer bleeding obvious?'

Apparently. over here builders will not build if they can only make the level of profits (per unit) that Canadian builders will settle for.

wotsthat

Scrootum wrote: »

Apparently. over here builders will not build if they can only make the level of profits (per unit) that Canadian builders will settle for.

So the UK building industry is choosing zero profit instead? Of course not.

HAMISH_MCTAVISH

wymondham wrote: »

That's one prop gone then!

Just need the others to go to see house prices find their own more sensible level!

And what will you say if that level is higher than now?

As the economy recovers, unemployment falls, growth accelerates, lending returns to normal, etc, we'll continue to see various support and stimulus withdrawn.

As it will no longer be needed.

This does not however mean prices will fall.

Just the opposite in fact.

macaque_2

HAMISH_MCTAVISH wrote: »

And what will you say if that level is higher than now?

As the economy recovers, unemployment falls, growth accelerates, lending returns to normal, etc, we'll continue to see various support and stimulus withdrawn.

As it will no longer be needed.

This does not however mean prices will fall.

Just the opposite in fact.

Economic recovery and growing economic activity are not the same thing. When the government can demonstrate growth in economic activity without printing money, borrowing at biblical levels and pillaging peoples savings (with base rates below inflation) I might believe that we are seeing economic growth.

blinko

HAMISH_MCTAVISH wrote: »

And what will you say if that level is higher than now?

As the economy recovers, unemployment falls, growth accelerates, lending returns to normal, etc, we'll continue to see various support and stimulus withdrawn.

As it will no longer be needed.

This does not however mean prices will fall.

Just the opposite in fact.

as interest rates increase, as stimulus and support for the housing market is with drawn the affect will be 2 fold

1. the cost of debt will increase
2. the amount of deposit will be required.

these 2 will ensure the house prices will fall certainly from the run away levels they are currently experiencing.

The bank of england has just started the tightening, next will be interest rate movements and then withdrawal of help to buy

Yorkie1

It seems pretty widely accepted that FFL had a bad impact on savings rates as lenders didn't need to attract savers in the same way as they previously needed to.

What I'm not as convinced by, is that the withdrawal of FFL will lead to a bounce back in savings rates - unless and until the capital requirements for banks change again (requiring them to hold more capital).

I think (but might have misunderstood) that the banks have already met the capital requirements for next April, so the impetus to attract savers is not there at present.

HTB will continue to assist lenders in their desire to lend.