Funding for Lending on mortgages is ended

macaque_2

HAMISH_MCTAVISH wrote: »

Because you don't have one.

Rates rising back to normal levels, when the economy is also recovering, will not cause house prices to fall.

Simple as that really.

Each year, disposable incomes in the UK fall as wage inflation lags behind price inflation. Your expectations that house prices can withstand the combined effects of rising interest rates and falling disposable incomes is just not credible (and particularly so in the context of current house prices).

CLAPTON

macaque wrote: »

Each year, disposable incomes in the UK fall as wage inflation lags behind price inflation. Your expectations that house prices can withstand the combined effects of rising interest rates and falling disposable incomes is just not credible (and particularly so in the context of current house prices).

That would seem a sensible conclusion if the housing market as limited by mortgage 'affordability'

if however, the market was limited by large deposit requirements and mortgage availability then that conclusion wouldn't necessarily be the right conclusion.

2010

Funding for Lending on mortgages is ended

This is great news and should never have happened in the first place.
Why should taxpayers subsidise people to bite off more than they can chew to buy a house.
The sooner that other crackpot scheme, "Help to Buy" is stopped the better.

A few years back you got a mortgage of no more than three and a half times your earnings, which you had to prove.
Get back to those days and you`ll see house prices tumble.
Why do you have to pay £250k for a £100k house?
Answer: CHEAP BORROWING.

AndyGuil

Interestingly I have noticed that bank interest rates on mortgages has gone down a little.

blinko

HAMISH_MCTAVISH wrote: »

Because you don't have one.

Rates rising back to normal levels, when the economy is also recovering, will not cause house prices to fall.

Simple as that really.

So what will the affect be in your opinion....????

its obvious to everyone except you who is stuck in negative equity because you have over borrowed and are relying on housing increasing :rotfl: :rotfl:;)


interest rates increase
Amount of deposit required increases

DOWNWARD pressure on house prices

HAMISH_MCTAVISH

blinko wrote: »

So what will the affect be in your opinion....????

House prices will keep rising.

It's been explained to you several times as to why.

Rates will only rise meaningfully as the economy recovers, leading to falling unemployment, rising wages, and increasing confidence.

Which combined with the housing shortage means prices are only going one way over the long term, and it ain't down.

its obvious to everyone except you who is stuck in negative equity because you have over borrowed and are relying on housing increasing

One house is mortgage free, the other now less than 50% LTV, at around one times income. And Aberdeen prices are now higher than they were in 2007.

Prices could fall 50% from here and I still wouldn't be in negative equity.

But don't let the facts get in the way of your petty attacks.....;)

wotsthat

grizzly1911 wrote: »

I find it difficult it difficult calling following the law corruption.

If the cost of local development is significant it should be reflected in the price paid for the land. developers aren't stupid they know what liabilities are likely to be attached to a proposal. in the same way they ask for x properties on a development and settle for y less.

I am not sure bankers were blameless. You throw corruption around I am not sure that is productive either.

Legalised corruption is just the 'acceptable' face of corruption.

Yes the builders will know the likely size of bribe involved and build this into their calculations. The fact remains - the home buyer pays. Like any system that involves corruption it takes someone brave to opt- out - any builder refusing to pay for a councillor's pet project is going to find it difficult to ply their trade.

You want to talk about bankers again. How many have been prosecuted - using your logic therefore I presume you don't accept there's a sniff of corruption in the financial services industry?

There's been a long saga in Derby involving Tesco wanting to build a 24 hour store. Media reported most of the council being minded to reject as they didn't think a new store was needed - an offer by Tesco to redevelop an outdoor market resolved these concerns. Then the council deferred decisions because they were worried about traffic - £250k soon got the planning on track. The council members will have been celebrating the extraction of cash from Tesco but little realised they were just increasing the food bills of their constituents.

wotsthat

Graham_Devon wrote: »

It is, incredibly simple. And thank you for letting us know all this after the event.

I'd now be incredibly suprised if I found you suggesting that the only reason for improving mortgage conditions was FFL which was a result of the US policy....in say, August?

I'd be even more surprised if I saw you talking of the "dysfunctional" market in say November, as this is such a simple concept, I just cannot imagine you saying anything else?

I'd be, somewhat less surprised if I saw you cheering on the bringing forward of help to buy as a result of a "dysfunctional market" and the government doing their job to "provide liquidity to a dysfunctional mortgage market"..in say, the last couple of months?

Blimey Hamish, you change your tune more than someone with a hygiene OCD changes their underpants.

Must be raining on your parade to find the people who should be crying into their copies of the Express are seeing this as pretty good news.

It's a sign that things are returning to normal - we should all rejoice.

I've a horrible feeling you aren't going to like normal when it arrives.

grizzly1911

wotsthat wrote: »

Legalised corruption is just the 'acceptable' face of corruption.

Yes the builders will know the likely size of bribe involved and build this into their calculations. The fact remains - the home buyer pays. Like any system that involves corruption it takes someone brave to opt- out - any builder refusing to pay for a councillor's pet project is going to find it difficult to ply their trade.

You want to talk about bankers again. How many have been prosecuted - using your logic therefore I presume you don't accept there's a sniff of corruption in the financial services industry?

There's been a long saga in Derby involving Tesco wanting to build a 24 hour store. Media reported most of the council being minded to reject as they didn't think a new store was needed - an offer by Tesco to redevelop an outdoor market resolved these concerns. Then the council deferred decisions because they were worried about traffic - £250k soon got the planning on track. The council members will have been celebrating the extraction of cash from Tesco but little realised they were just increasing the food bills of their constituents.

Legalised corruption introduced by a democratically elected government. That wouldn't happen would it?

At the end of the day Joe Punter pays whether it is through higher prices or taxation. It is just a question of which is most equitable and at what point it has to be paid.

In your Derby example if the market needed redevelopment the council would have loaded local taxes or reduced services elsewhere to pay for it. Arguably a vibrant local market or high street close by will also improve custom for Tesco.

If I want a gas or telephone supply to a virgin site is it provided for nothing?

AndyGuil

I see there is a lot of talk of a stamp duty holiday in the news. Perhaps something that will be announced on Thursday.