Nearly £60k down-valuation by lender

Crashy_Time

Davesnave said:

Crashy_Time said:

Davesnave said:

It could be that lenders are beginning to price-in a bit of caution now, given that 'Pandemic' has only a limited time to run now and eventually the $h1t will really HTF?

Do you mean that without Covid things like furlough/SD holiday etc. have to end and economic reality be faced up to? Do you think jobs/lending will come back if this ends soon?

I mean that no economy has ever printed its way out of trouble. I don't do the whole Mystic Meg thing saying when exactly the SHTF, but it will.

To be fair to the politicians/bankers they have managed to keep things ticking over (and the property bubble going) since 2008 by money printing? The irony is that the money printing overdrive needed to escape the massively deflationary event that is Covid will likely send mortgage rates/general borrowing rates much higher?

Davesnave

Crashy_Time said:

Davesnave said:

Crashy_Time said:

Davesnave said:

It could be that lenders are beginning to price-in a bit of caution now, given that 'Pandemic' has only a limited time to run now and eventually the $h1t will really HTF?

Do you mean that without Covid things like furlough/SD holiday etc. have to end and economic reality be faced up to? Do you think jobs/lending will come back if this ends soon?

I mean that no economy has ever printed its way out of trouble. I don't do the whole Mystic Meg thing saying when exactly the SHTF, but it will.

To be fair to the politicians/bankers they have managed to keep things ticking over (and the property bubble going) since 2008 by money printing? The irony is that the money printing overdrive needed to escape the massively deflationary event that is Covid will likely send mortgage rates/general borrowing rates much higher?

I have no idea, but it's in the nature of lenders to be cautious. Individuals only see a small bit of the elephant.

Covid has had zero negative economic effect on my family; in fact some younger ones have found new secure jobs in the past few months and the others are run off their feet. Here in the countryside people are still scratching their heads over Brexit and whether the French will still be seeking-out our lamb! 

Crashy_Time

Davesnave said:

Crashy_Time said:

Davesnave said:

Crashy_Time said:

Davesnave said:

It could be that lenders are beginning to price-in a bit of caution now, given that 'Pandemic' has only a limited time to run now and eventually the $h1t will really HTF?

Do you mean that without Covid things like furlough/SD holiday etc. have to end and economic reality be faced up to? Do you think jobs/lending will come back if this ends soon?

I mean that no economy has ever printed its way out of trouble. I don't do the whole Mystic Meg thing saying when exactly the SHTF, but it will.

To be fair to the politicians/bankers they have managed to keep things ticking over (and the property bubble going) since 2008 by money printing? The irony is that the money printing overdrive needed to escape the massively deflationary event that is Covid will likely send mortgage rates/general borrowing rates much higher?

I have no idea, but it's in the nature of lenders to be cautious. Individuals only see a small bit of the elephant.

Covid has had zero negative economic effect on my family; in fact some younger ones have found new secure jobs in the past few months and the others are run off their feet. Here in the countryside people are still scratching their heads over Brexit and whether the French will still be seeking-out our lamb! 

Way too late though, their lending practices have caused the current mess. Down valuations are to be welcomed though, the more the better IMO.

MobileSaver

Crashy_Time said:

Way too late though, their lending practices have caused the current mess.

What "mess"?

The market is booming around my way; sellers are getting top dollar and buyers can obviously afford those same asking prices.

As of this morning there are just two properties available to buy within a three mile radius of the village I live in:

One came onto the market just a week ago.

The other has been on the market since late last year but I suspect that is because the Rightmove listing is a dog's dinner - inexplicably the main photo is of the lounge but, much worse, the address that is shown prominently before you choose to view the property states that it is in a town around 15 miles away. Imagine the real address was "Stevedore Place, Leith, Edinburgh" well for some bizarre reason they've listed the address as "Livingston, Edinburgh, Midlothian" - most people looking for somewhere in Leith would probably not bother clicking a link for a property apparently in Livingston - all very odd.

SpiderLegs

Crashy_Time said:

Davesnave said:

Crashy_Time said:

Davesnave said:

Crashy_Time said:

Davesnave said:

It could be that lenders are beginning to price-in a bit of caution now, given that 'Pandemic' has only a limited time to run now and eventually the $h1t will really HTF?

Do you mean that without Covid things like furlough/SD holiday etc. have to end and economic reality be faced up to? Do you think jobs/lending will come back if this ends soon?

I mean that no economy has ever printed its way out of trouble. I don't do the whole Mystic Meg thing saying when exactly the SHTF, but it will.

To be fair to the politicians/bankers they have managed to keep things ticking over (and the property bubble going) since 2008 by money printing? The irony is that the money printing overdrive needed to escape the massively deflationary event that is Covid will likely send mortgage rates/general borrowing rates much higher?

I have no idea, but it's in the nature of lenders to be cautious. Individuals only see a small bit of the elephant.

Covid has had zero negative economic effect on my family; in fact some younger ones have found new secure jobs in the past few months and the others are run off their feet. Here in the countryside people are still scratching their heads over Brexit and whether the French will still be seeking-out our lamb! 

Way too late though, their lending practices have caused the current mess. Down valuations are to be welcomed though, the more the better IMO.

Yes down valuations are absolutely to be welcomed, as they act as a brake on unsustainable levels of HPI.

Ozzuk

Crashy_Time said:

Davesnave said:

Crashy_Time said:

Davesnave said:

Crashy_Time said:

Davesnave said:

It could be that lenders are beginning to price-in a bit of caution now, given that 'Pandemic' has only a limited time to run now and eventually the $h1t will really HTF?

Do you mean that without Covid things like furlough/SD holiday etc. have to end and economic reality be faced up to? Do you think jobs/lending will come back if this ends soon?

I mean that no economy has ever printed its way out of trouble. I don't do the whole Mystic Meg thing saying when exactly the SHTF, but it will.

To be fair to the politicians/bankers they have managed to keep things ticking over (and the property bubble going) since 2008 by money printing? The irony is that the money printing overdrive needed to escape the massively deflationary event that is Covid will likely send mortgage rates/general borrowing rates much higher?

I have no idea, but it's in the nature of lenders to be cautious. Individuals only see a small bit of the elephant.

Covid has had zero negative economic effect on my family; in fact some younger ones have found new secure jobs in the past few months and the others are run off their feet. Here in the countryside people are still scratching their heads over Brexit and whether the French will still be seeking-out our lamb! 

Way too late though, their lending practices have caused the current mess. Down valuations are to be welcomed though, the more the better IMO.

News yesterday house prices still increasing, no sign of your ever-predicted downturn.  I admit I'm not watching house sales as much as previous years as I've luckily secured somewhere I'll hopefully be in for a very long time but every indication is it isn't the doom and gloom many predicted.  Spending is going crazy, money is flowing and people will want a change of scenery which means demand will increase.

Davesnave

Ozzuk said:

Crashy_Time said:

Davesnave said:

Crashy_Time said:

Davesnave said:

Crashy_Time said:

Davesnave said:

It could be that lenders are beginning to price-in a bit of caution now, given that 'Pandemic' has only a limited time to run now and eventually the $h1t will really HTF?

Do you mean that without Covid things like furlough/SD holiday etc. have to end and economic reality be faced up to? Do you think jobs/lending will come back if this ends soon?

I mean that no economy has ever printed its way out of trouble. I don't do the whole Mystic Meg thing saying when exactly the SHTF, but it will.

To be fair to the politicians/bankers they have managed to keep things ticking over (and the property bubble going) since 2008 by money printing? The irony is that the money printing overdrive needed to escape the massively deflationary event that is Covid will likely send mortgage rates/general borrowing rates much higher?

I have no idea, but it's in the nature of lenders to be cautious. Individuals only see a small bit of the elephant.

Covid has had zero negative economic effect on my family; in fact some younger ones have found new secure jobs in the past few months and the others are run off their feet. Here in the countryside people are still scratching their heads over Brexit and whether the French will still be seeking-out our lamb! 

Way too late though, their lending practices have caused the current mess. Down valuations are to be welcomed though, the more the better IMO.

News yesterday house prices still increasing, no sign of your ever-predicted downturn.  I admit I'm not watching house sales as much as previous years as I've luckily secured somewhere I'll hopefully be in for a very long time but every indication is it isn't the doom and gloom many predicted.  Spending is going crazy, money is flowing and people will want a change of scenery which means demand will increase.

Yes these are all good  indications of what's likely to happen in the short term, but the real question is how much new money is being earned, plus what will need to be paid to service existing and extra debts built during the Covid measures to keep us all 'safe.'

Crashy_Time

MobileSaver said:

Crashy_Time said:

Way too late though, their lending practices have caused the current mess.

What "mess"?

The market is booming around my way; sellers are getting top dollar and buyers can obviously afford those same asking prices.

As of this morning there are just two properties available to buy within a three mile radius of the village I live in:

One came onto the market just a week ago.

The other has been on the market since late last year but I suspect that is because the Rightmove listing is a dog's dinner - inexplicably the main photo is of the lounge but, much worse, the address that is shown prominently before you choose to view the property states that it is in a town around 15 miles away. Imagine the real address was "Stevedore Place, Leith, Edinburgh" well for some bizarre reason they've listed the address as "Livingston, Edinburgh, Midlothian" - most people looking for somewhere in Leith would probably not bother clicking a link for a property apparently in Livingston - all very odd.

The buyers for your village are using equity from a bubble in the cities (London most likely) caused by years of too lax lending that had to be propped up by cutting interest rates to record lows, if rates start rising that dynamic is changed. The "mess" is hard working keyworkers on two wages still not able to buy near where they work without HTB/Family Loan/All their savings in the  house pot etc. That is what a housing bubble created with cheap debt does, it makes basic property more unaffordable for ordinary people! The mad rush to buy when the SD holiday kicked in shows that a lot of people can`t easily afford it, they are stretching themselves, and many will be financially hurt if rates rise.

Crashy_Time

Ozzuk said:

Crashy_Time said:

Davesnave said:

Crashy_Time said:

Davesnave said:

Crashy_Time said:

Davesnave said:

It could be that lenders are beginning to price-in a bit of caution now, given that 'Pandemic' has only a limited time to run now and eventually the $h1t will really HTF?

Do you mean that without Covid things like furlough/SD holiday etc. have to end and economic reality be faced up to? Do you think jobs/lending will come back if this ends soon?

I mean that no economy has ever printed its way out of trouble. I don't do the whole Mystic Meg thing saying when exactly the SHTF, but it will.

To be fair to the politicians/bankers they have managed to keep things ticking over (and the property bubble going) since 2008 by money printing? The irony is that the money printing overdrive needed to escape the massively deflationary event that is Covid will likely send mortgage rates/general borrowing rates much higher?

I have no idea, but it's in the nature of lenders to be cautious. Individuals only see a small bit of the elephant.

Covid has had zero negative economic effect on my family; in fact some younger ones have found new secure jobs in the past few months and the others are run off their feet. Here in the countryside people are still scratching their heads over Brexit and whether the French will still be seeking-out our lamb! 

Way too late though, their lending practices have caused the current mess. Down valuations are to be welcomed though, the more the better IMO.

News yesterday house prices still increasing, no sign of your ever-predicted downturn.  I admit I'm not watching house sales as much as previous years as I've luckily secured somewhere I'll hopefully be in for a very long time but every indication is it isn't the doom and gloom many predicted.  Spending is going crazy, money is flowing and people will want a change of scenery which means demand will increase.

Confused by how that works, I thought mortgage approvals were going down again? Do you mean people will own two houses, one in the country and maybe a flat in town?

MobileSaver

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

Way too late though, their lending practices have caused the current mess.

What "mess"?

The market is booming around my way; sellers are getting top dollar and buyers can obviously afford those same asking prices.

The "mess" is hard working keyworkers on two wages still not able to buy near where they work without HTB/Family Loan/All their savings in the  house pot etc. That is what a housing bubble created with cheap debt does, it makes basic property more unaffordable for ordinary people! The mad rush to buy when the SD holiday kicked in shows that a lot of people can`t easily afford it, they are stretching themselves, and many will be financially hurt if rates rise.

When was the last time that keyworkers could afford to buy property in the most expensive parts of the country?

All the "ordinary people" that I know seem to have been able to afford to buy a property; not necessarily in their ideal location but that's no different to when I bought my first property in the 80's.

Crashy_Time said:

The mad rush to buy when the SD holiday kicked in shows that a lot of people can`t easily afford it,

Or it shows that people are more financially savvy than you give them credit for and simply want to save money on something they were going to buy anyway?