Barclays just rang and told me all new mortgages require 40% deposits now

graphs

Prices are on the way down, big time 📉

anonymous12124

Crashy_Time said:

Why would anyone panic at the prospect of lower house prices?

Those selfish people who profit from the housing market. Hopefully some stricter rules are put in place the housing prices drop so that people who will actually live in them get the best chance. It's so sad that an entire generation has been priced out of the market in the South East.

bigmortgage

graphs said:

Prices are on the way down, big time 📉

Just like in 2008. Oh wait...

Mickygg

graphs said:

Prices are on the way down, big time 📉

Which crystal ball are you using? Mine has run out of batteries recently so thank you for ensuring everyone stays well informed.

Mickygg

Withdrawing high ltv mortgages makes sense. There is a slight whiff of 2008 in the air so banks wont want to be caught short in this period of total uncertainty. 

Thrugelmir

hazyjo said:

lalna said:

Just to update Halifax has also done the same now

Not trying to derail too much, but it's what I would have expected before anyone mentioned it. Surely it's logical they will want much bigger deposits, and it wouldn't surprise me if they withdraw FTB deals/products for a while. Nothing's happening as we're all holed up, and I can't see anyone wanting to encourage FTBs to buy right now, even if we weren't. Yep, the India thing makes sense too and is probably contributing. The banks won't want to be blamed again though so I totally get why they would want to cover their backsides.

Simply a way of reducing enquiries at a time of pressure. They'll be many more people looking to remortgage to obtain better rates. Than actually apply for a new mortgage. 

anonymous12124

Mickygg said:

graphs said:

Prices are on the way down, big time 📉

Which crystal ball are you using? Mine has run out of batteries recently so thank you for ensuring everyone stays well informed.

If you need a crystal ball to tell you the obvious then we can't help you out.

High LTV mortgages are being dropped. Despite government intervention there will be a staggeringly increase in unemployment. Uncertaintity in the global and national markets makes it pretty clear that there's going to be a house price drop and most likely sharp and deep when it happens.

The knock on effect will be huge - I don't know if you view Rightmove and Zoopla regularly but a lot of sold houses have suddenly shown up in my search list again. Prices will drop, most likely between 15 and 20%.

numbercruncher8

bigmortgage said:

graphs said:

Prices are on the way down, big time 📉

Just like in 2008. Oh wait...

Problem is, in 2007 at the start of the GFC interest rates were 5.75%, in the space of just 2 years they had gone down to 0.5%.
I had a large variable rate mortgage at this time, and my mortgage cost almost halved in this period. It is no wonder why prices started to go up in this time - the same amount of mortgage payment could afford a much better house.

Given that interest rates have no lower to go this time, on what basis do you see prices increasing? Just implying 'because they did in 2008' seems a bit simple to me. 

In my view the market pressures are downward: house prices are already overpriced relative to earnings in some places, and we have a sharp recession on the way with a decrease in business activity and increase in unemployment. This may take some time to resolve.
The supporting pressures are that the government won't want falling house prices. But their props are a bit more limited this time, unless they want to extend the HTB scheme to every house, increase the percentage loan, make it available to all (not just first-time buyers) and make it interest free.

In my view house prices are going to be broadly flat in nominal terms in the short and medium terms..... in technical terms the government could paint a rosy picture on it, ie 'house prices have kept pace with inflation', in real terms it will be a fall as the inflation measure is arbitrary and fudged.

I am not too sure many people will be that bothered as long as the nominal measure holds up, without realising that inflation is the government's way of theiving. That's how they want it.

Crashy_Time

https://www.bbc.co.uk/news/business-52016263

Crashy_Time

bigmortgage said:

graphs said:

Prices are on the way down, big time 📉

Just like in 2008. Oh wait...

That was a banking crisis, they could direct bailouts at specific institutions to keep the wheels turning over, this is a situation where people are indoors, not spending and not working, the knock on for property/rents is bigger than 2008, and it is harder for central banks to target the problem with the money hose.