London Has Peaked

Bubble_and_Squeak

chewmylegoff wrote: »

4.2% of income? TIMBERRRRRR!

doesn't apply to, yes, you've guessed it: BTL mortgages

System

chewmylegoff wrote: »

4.2% of income? TIMBERRRRRR!

:laugh: 4.2%, yikes.

ukcarper

Bubble_and_Squeak wrote: »

a colleague was telling me yesterday of new mortgage restrictions coming in this month limiting the size of loans to 4.2% of income.
anyone know anything about this?

That will have an effect you would need to be earning £4.2 million to get a 100% mortgage on the average house.

Fraise

People seem to love talking about London property prices and they do fluctuate sometimes, but time and time again we are proven wrong (or right depending on your hopes), when saying london prices are going to plummet..bal bal bal. They're not. It's not going to happen.

Anywhere within the M25 which is all of Greater London and also the suburbs like Surrey, Hertfordshire etc..the South East, basically, is much more expensive than the rest if the country. I don't know why people keep talking about it. It's not going to change anything.

You can either afford to live in London or you can't. If you can't then look somewhere else instead of beating yourself up about it. It's a complete waste of time and only serves to make you feel frustrated.

Bubble_and_Squeak

Fraise wrote: »

People seem to love talking about London property prices and they do fluctuate sometimes, but time and time again we are proven wrong (or right depending on your hopes), when saying london prices are going to plummet..bal bal bal. They're not. It's not going to happen.

Anywhere within the M25 which is all of Greater London and also the suburbs like Surrey, Hertfordshire etc..the South East, basically, is much more expensive than the rest if the country. I don't know why people keep talking about it. It's not going to change anything.

You can either afford to live in London or you can't. If you can't then look somewhere else instead of beating yourself up about it. It's a complete waste of time and only serves to make you feel frustrated.

where do you think the money is going to come from to sustain such high london property prices?

wotsthat

Bubble_and_Squeak wrote: »

where do you think the money is going to come from to sustain such high london property prices?

The wise owls on HPC were asking this very same question and they then watched with bemusement as London prices continued to hit new all time highs.

NorthFin

Bubble_and_Squeak wrote: »

a colleague was telling me yesterday of new mortgage restrictions coming in this month limiting the size of loans to 4.2% of income.
anyone know anything about this?

Yes I am hearing this from another place.

Cant find anything concrete yet, anybody else have uptodate info?

Sounds desperate. If they are worried about London getting overheated they shouldnt have let it get so overvalued in the first place.

Bubble_and_Squeak

wotsthat wrote: »

The wise owls on HPC were asking this very same question and they then watched with bemusement as London prices continued to hit new all time highs.

indeed, record low interest rates, funding for lending and H2B pushed prices to all time highs. back to my original question:
where will the money come from to sustain these high prices?

Bubble_and_Squeak

NorthFin wrote: »

Yes I am hearing this from another place.

Cant find anything concrete yet, anybody else have uptodate info?

Sounds desperate. If they are worried about London getting overheated they shouldnt have let it get so overvalued in the first place.

its a restriction on how many jumbo sized mortgages banks can dole out. from october only 15% of a banks mortgages can exceed 4.5% income. BTL not included.
don't think it'll have much impact.

lisyloo

Do you mean 4.5 times income?