No money no problem 100% mortgages are back in attempt to keep bubble inflating

Thrugelmir

Conrad wrote: »

We both expect lenders will soon back-track - I've seen this so many times - as their monthly sales targets start getting missed.

Lenders no longer sell cans of baked beans. Retailers no longer run banks. Banks lend for profit not sales volume.

Keep up with the changing times.

New BTL lending criteria that's being discussed may change the landscape .

Garethgrew

Anybody watch the new brad Pitt movie about the housing bubbles?

And now the bubble is even bigger?

Conrad

Thrugelmir wrote: »

Lenders no longer sell cans of baked beans. Retailers no longer run banks. Banks lend for profit not sales volume.

Keep up with the changing times.

.

I've yet to meet a Bank rep that wants less volume, indeed their whole careers depend on hitting sales numbers.


Not once do they ask "what value of mortgages do you think we can expect from you", it's always "how many".


Follow the money........

Filo25

Garethgrew wrote: »

Anybody watch the new brad Pitt movie about the housing bubbles?

And now the bubble is even bigger?

Is it?

Honestly I don't think anyone has much of an idea what fair value for property will be in a few years, I doubt we will see continuing double digit growth in London but beyond that I have no idea.

The crash back in 2007 had its roots in massive subprime mortgage exposures in the US and the resulting collapse in the financial sector had huge impacts around the world.

We don't really have a similar situation now which isn't to say a correction or crash isn't possible for different reasons, but if it happens its unlikely to look like 2007 and 2008.

You could argue that the UK wasn't even really in extreme bubble territory in 2007, its just that the financial collapse dried up credit and crashed the housing market due to events in the US.

Conrad

Personally I feel an obsession with crashes is a great misallocation of thought.


Since 1990 I've been through 2 crashes and one blip (Dotcom bust), and in that time I can see the very first home I bought for £77k now changes hands at £400k.

Furthermore hardly anyone I've met actually crystallised a loss.


This is why I feel crash obsessives are akin to later day Puritans that spent thier time warning people judgment day was around the next corner.


Surely 'the profligate' will be found wanting come judgement day, when the modern day Puritan cash hoarder is at last proven to be from the chosen, those of whom the Gods would approve for their puritan abstinence

westernpromise

To imagine you can profit by perfect timing of your entry and exit from the housing market is not MSE thinking anyway. It amounts to speculating with the roof over your head and the kind of people who do it are incapable of being honest with themselves about the maths.

There is a certain type of crashtroll who is terrified of mortgage debt but can’t see that future rental obligation is a debt that for most people is far larger, never ends and leaves you with nothing. That would scare me.

Thrugelmir

Conrad wrote: »

Personally I feel an obsession with crashes is a great misallocation of thought.


Since 1990 I've been through 2 crashes and one blip (Dotcom bust), and in that time I can see the very first home I bought for £77k now changes hands at £400k.

Furthermore hardly anyone I've met actually crystallised a loss.


This is why I feel crash obsessives are akin to later day Puritans that spent thier time warning people judgment day was around the next corner.


Surely 'the profligate' will be found wanting come judgement day, when the modern day Puritan cash hoarder is at last proven to be from the chosen, those of whom the Gods would approve for their puritan abstinence

Then you've never experienced what a real recession is, along with many other people of a certain generation.