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

Crashy_Time

More or less, they don`t want people moving about at all it seems.

iampetesmith

I completed on a house purchase 4 months ago but it wasn't bought as an investment, it was bought as a home to live in with my family for many years. The plan is to overpay on the mortgage as much as possible to get that over and done with, then enjoy the benefits of having a house that doesn't need monthly rent or mortgage payments. Bought a house big enough so that we shouldn't need to sell it for a very long time.

NeilCr

https://www.gov.uk/guidance/government-advice-on-home-moving-during-the-coronavirus-covid-19-outbreak

Crashy_Time

Interesting, absolutely crazy times TBH.

AdrianIsabel

lalna said:

JessJ23425 said:

Just read an article on it, looks like it's specifically to limit business while they deal with the mass contact from customers about everything else that's going on, nothing stated that it's due to an expected fall in the property market.

It's possible/probable they will all come back after lockdowns in UK and India are over?

The mortgage adviser told me specifically they had just had a emergency conference call and the reason given was for property price uncertainty.

Just got yesterday a call from my mortgage advisor. He mentioned it wasn't related to the property price but I suggested this and he said it isn't but pointed the lack of staff and being difficult for lenders to work the volume of work that higher LTV mortgages give them. BTW the lender we got an AIP was Nationwide and the application has now gone to HSBC; apparently they keep lending to higher LTV. Let's see if they don't decline the application in the next days

MobileSaver

all new mortgages require 40% deposits now

Crashy_Time said:

Sensible move for the banks, too late to protect people who have too much debt and possible lay off looming though.

Several of us warned you that there would be tighter lending restrictions as a result of the fallout from the Coronavirus... so regardless of what happens to house prices do you think "minimum 40% deposits" will lead to an increase or decrease in transaction numbers?

Crashy_Time

MobileSaver said:

all new mortgages require 40% deposits now

Crashy_Time said:

Sensible move for the banks, too late to protect people who have too much debt and possible lay off looming though.

Several of us warned you that there would be tighter lending restrictions as a result of the fallout from the Coronavirus... so regardless of what happens to house prices do you think "minimum 40% deposits" will lead to an increase or decrease in transaction numbers?

Really? My memory is of several posters saying this wasn`t going to progress to a full blown credit market/economic crisis (as I predicted very early on) Many posters on here have been saying for a long time, long before this crisis, that loans will be hard to come by if the property market crashes, this is because they don`t want to let go of the bubble mentality IMO, and IMO it pains them that others might get a chance to buy at lower prices. The sequence usually is -"Oh no, nothing will crash the market" - "Uh Oh, the market is in trouble - but no one (especially from THAT website) will be able to buy at cheaper prices". Funny and sad at the same time really..........unfortunately propping the market has consequences and letting it pop has consequences but IMO there eventually comes a time when if you want to sell a house the price has to be heavily discounted (more so if lending is tighter) and that affects the price of all other similar houses in the area.

Crashy_Time

https://www.cityam.com/uk-credit-rating-downgraded-due-to-coronavirus-impact-and-brexit-uncertainty/

Really really not the time to be thinking about borrowing a ton of money for over-priced property anyway.

Tillypop56

Just wondering if anyone has had a similar experience with a surveyor.  I was able to get the surveyor to go round the potential house I am buying before the lockdown and I received the report Thursday (26 March 20) to be told that "The property market has largely stopped in its tracks.  At this precise moment in time, effectively there is no property market, and therefore providing an accurate valuation of the property is simply not possible" so I am left with a survey report without a valuation on it!  I've written and reminded the surveyor that a valuation was agreed at instruction but he's just "sorry that's it's not possible to place a valuation on the property at the current time"  - Oh, and he added, "Again, please note our offices are closed".  This can't be right surely?

Crashy_Time

Not much you can do, looks like they are shutting it down (like stock market shut downs) to delay selling and try to prevent losses.