Debate House Prices
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MSE News: Risky mortgages to face new crackdown, George Osborne says

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The Bank of England will be given greater powers to restrict mortgage loans to fix Britain's housing market ...
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Risky mortgages to face new crackdown, George Osborne says

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Risky mortgages to face new crackdown, George Osborne says

Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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An average property in somewhere like Twickenham would require something like 6 x average income.
Another gift for the landlords.
Before anyone says it, the impact on prices will be minor as landlords, wealthy parents and the rest of the already owning class will mop up the property the excluded buyers are denied by lenders.
I doubt the people that buy the house require 6x income. Isn't the average below 4 anyway?
Mortgage lending consistantly sits around the 3.2x level as an average.
"Going to work at 7am this morning I drove out of my drive straight into a bus. The bus was 5 minutes early.".
Put in a five runway airport near Southampton, to compete with Schiphol. Southampton is good for boarding the cruise ships, and HS3 would make it less than one hour to Waterloo.
Plenty of land out there, nice weather, just need some transport infrastructure. Should be a lot more affordable than London.
Pretty sure average income isn't £100k
Having excluded the people who can't buy anything at 3.5 multiple, effectively calling them sluts and spoilt goods, no doubt we will call them prostitutes for borrowing at even higher rates, from lenders we will call pimps.
They really have to let go, and allow higher risk loans at higher rates.
and allow the possibility that some of them will hit bad luck and default. You can't nursemaid people forever.
I'ld be surprise if the BoE cares a damn about a poor chap that has to default.
They are concerned that sufficient people may default to upset the integrity of our banking system and to cause lose of confidence in the economy (falling sales, rising unemployment etc).