Lenders Stopping Lending

ACG

I have just spoken with a few lenders and they seem to think they can carry on lending for at least 12 months as they have enough money in the bank to do that. That puts us in a very different world to 2007. 

There are clearly going to be causalities that is showing already but I am not convinced it will be as bad as 13 years ago. The government are doing a LOT more to support businesses this time around. The only people who got bails outs last time were the banks, this time it is small businesses, medium business, homeowners, renters pretty much everyone. 

csgohan4

Conversely I think with being laid off, the demand for house buying will reduce, possibly leading to reduced housing prices

Cell_666

ACG said:

I have just spoken with a few lenders and they seem to think they can carry on lending for at least 12 months as they have enough money in the bank to do that. That puts us in a very different world to 2007. 

There are clearly going to be causalities that is showing already but I am not convinced it will be as bad as 13 years ago. The government are doing a LOT more to support businesses this time around. The only people who got bails outs last time were the banks, this time it is small businesses, medium business, homeowners, renters pretty much everyone. 

With tonights announcement it helps short term with a large group. Not so sure about self employed, jury is out, again. The main thing in all this is nothing is going to be the same for a long ling while. My wife and I have decided we'll not buy but still complete the sale on our house, take the profit and rent, let things settle down and see what state I am business wise. 

ACG

Im self employed too and I think today they have just announced an outline of what is on offer. I am sure more details will come out next week and hopefully there will be some support for self employed people. 

I am self employed and have a couple of people who work for me, in the long run I can see out this period. I was prepared for 2020 being a bad one as I was not sure how brexit would affect things. But if this does hit for a long time, then yes I might have to look at going back to a one man band for a while. I am happy to give it 6 months though as I think the govt in fact all major governments are doing a lot more than they have ever done. There is no reason why the world can not bounce back from this sooner rather than later. 

I suppose like anything, time will tell. Presumably you are taking the gamble of paying rent in the "hope" (I put it in speechmarks as house prices dropping are usually a sign of bigger problems) house prices drop? I suppose if nothing else having cash in the bank gives you a lot more flexibility. 

csgohan4

ACG said:

Im self employed too and I think today they have just announced an outline of what is on offer. I am sure more details will come out next week and hopefully there will be some support for self employed people. 

I am self employed and have a couple of people who work for me, in the long run I can see out this period. I was prepared for 2020 being a bad one as I was not sure how brexit would affect things. But if this does hit for a long time, then yes I might have to look at going back to a one man band for a while. I am happy to give it 6 months though as I think the govt in fact all major governments are doing a lot more than they have ever done. There is no reason why the world can not bounce back from this sooner rather than later. 

I suppose like anything, time will tell. Presumably you are taking the gamble of paying rent in the "hope" (I put it in speechmarks as house prices dropping are usually a sign of bigger problems) house prices drop? I suppose if nothing else having cash in the bank gives you a lot more flexibility. 

At least you know there will be a few on here who have used your services and happy to vouch for you and continue to give you business

Cell_666

ACG said:

Im self employed too and I think today they have just announced an outline of what is on offer. I am sure more details will come out next week and hopefully there will be some support for self employed people. 

I am self employed and have a couple of people who work for me, in the long run I can see out this period. I was prepared for 2020 being a bad one as I was not sure how brexit would affect things. But if this does hit for a long time, then yes I might have to look at going back to a one man band for a while. I am happy to give it 6 months though as I think the govt in fact all major governments are doing a lot more than they have ever done. There is no reason why the world can not bounce back from this sooner rather than later. 

I suppose like anything, time will tell. Presumably you are taking the gamble of paying rent in the "hope" (I put it in speechmarks as house prices dropping are usually a sign of bigger problems) house prices drop? I suppose if nothing else having cash in the bank gives you a lot more flexibility. 

I guess living cheap with a lump in the bank for a year makes better sense than bury our necks in a big mortgage. Our problem will start to compound as I’m 51 and my wife is 53, and I don’t  have a pension after 27 years of being self employed.  

To he fair I’m pretty chilled out about things even though we stand to lose just about everything. There many people who will be far worse off after all this so While I have nothing to do I’ll throw myself into social help with the community. Better than sat at home doing !!!!!! all.

ACG

Difficult isnt it. The main thing is you can feed yourself. See where we are in 2-3 months once it has all started to die down. 

Thrugelmir

ACG said:

I have just spoken with a few lenders and they seem to think they can carry on lending for at least 12 months as they have enough money in the bank to do that. That puts us in a very different world to 2007. 

Northern Rock was underwriting around 18% of new mortgage business in the lead up to it's demise. All on an interest only basis. Very different situation now. Likewise the quality of underwriting has greatly improved across the lenders that remained in the market. Around a third of mortgage lenders left the market following the GFC including all the US banks. . 

MovingForwards

ACG said:

I have just spoken with a few lenders and they seem to think they can carry on lending for at least 12 months as they have enough money in the bank to do that. That puts us in a very different world to 2007. 

That's very reassuring to read that!