Banks creating a market crash?

Dan_Collins_2

I think we have to step back in time a bit, these finance companies that packaged up crappy mortgage books and sold them on again and again have really harmed this market and industry. However I believe they brought forward this day rather than 100% causing it, however we may have made more subtle changes rather than big scary ones.

Imagine your A&L or GMAC and you have brought a mortgage book worth £50 mil, then 6 month down the line you have shed loads of clients not paying and you find out these are sub prime cases!! I see one firm is being sued for this miss selling I wonder how many more!

Also the biggest problem with humans is greed, banks got greedy, we got greedy and even the BOE got greedy and now we are paying for over doing it!

Dan_Collins_2

dwsjarcmcd wrote: »

Everyone is to blame, if it's blame that people are looking for!

To suggest Mortgage Brokers haven't played a role is just not the case. If there was`no demand for products, lenders wouldn't develop them. If I had a quid for everytime a broker has complained about tight criteria, I'd be a very rich man. That feeds to the BDM's who feed this centrally and lenders develop the products, which brokers sell to meet a customer demand.

It is not only the estate agents, but brokers, lenders (who saw fat margins in some of these products) and the customers who all must take responsibility.

Now the inter bank lending market has tightened, funding is an issue for lenders and consequently they are de-risking all over the place, hence the current situation.

David

I think you have a point. I know we cant blame every body but, I think we are all to blame. Some brokers, some estate agents and some members of the public. We can only blame our selves for this one. Greed has taken over.

I have heard some horror stories, real ones. 200k self certs for a employed person on 15k per year. Now this is and has been happening for some time and it needs to stop, well its to late anyway!

Fastrack will go soon and although the public may not have heard about this one, they will do. When fastrack goes I think the market will really be hit.

m.colak

Right i'll ask you a question i went on moneysupermarket to look for a new mortgage product as mine is coming to an end. Fine as my last mortgage broker still claimed his fee even though the product he arranged came to an end and i ended up doing all the leg work for a new product. He still came asking for his £250. I told moneysupermarket i didn't want this to happen again and they said of course sir no problem sir we will send round an independant mortgage adviser who won't charge you a penny.

Funny that how he dropped his charge of £600 into the conversation near the end but don't worry it will be added to the mortgage. Ok so tell me if i have two mortgage adviser who both try and rip me off why shouldn't i say that their interest is only making money and getting the best deal for themselves. Hence again i did the leg work myself and got rid of both adviser's and this is how i will do it from now on.

UK007BullDog

They are not ripping you off. They are charging a fee for their services. They paid moneysupermarket a fee for getting your details. They want to recoup that fee.

If you want to make sure you are not paying a fee then get out the big phonebook and start calling brokerages and ask them if they are fees free whole of market brokers. Eventually you find one and invite them round.

Problem solved.

Datasafe_2

UK007BullDog wrote: »

They are not ripping you off. They are charging a fee for their services. They paid moneysupermarket a fee for getting your details. They want to recoup that fee.

Sounds like getting ripped off to me.

Datasafe_2

I welcome to return of having to save up for a deposit. This generation want everything now wether its houses or credit cards, somewhere along the line we lose the value of money.

Datasafe_2

ukwoody wrote: »

Think the FSA doesn't check them or take action? Have a look on the FSA website and see the level of fines imposed on the rule breakers!

woody

Thats been done relatively recently. Its called closing the stable door after the horse has bolted.

UK007BullDog

Datasafe wrote: »

Sounds like getting ripped off to me.

Why?

You would pay a surveyor, you pay a solicitor, you pay a dentist and doctors, you pay the mechanic and the handyman and the cleaners. I would also like to get paid for my knowledge and the time I spent studying and the insurances I have to pay, taxes, and indemnity and other related costs like trading licences, phones, paper, extra staff.... so yes, I usually only look at customers who can pay me a fee, especially if the commission from the lender is poxy. In 2 to 3 years after having spent thousands of pounds for continuous training (required) and further training I expect to be paid more than now. If you dont like it then go to the banks and be prepared to get ripped off :rotfl:

dwsjarcmcd

Datasafe wrote: »

Thats been done relatively recently. Its called closing the stable door after the horse has bolted.

I think your spot on, particularly when you read the numerous posts from the brokers on here, wh all know of other brokers who make up income/pay slips/employment history etc in order to obtain mortgages.

TEDDYRUKSPIN

Lenders have the right to adjust if they want to accept the risk on mortgages or not. The reason that they demand a higher deposit is that they are predicting negative equity to occur. Simple. Our total household incomes can no longer warrant borrowing so high amounts.

Bulldog is correct. Why would'nt you pay an advisor upfront? Do you know why these advisors are sometimes free? Basically, if you require a free service, the advisor will only offer you the lenders that will provide them commission. If they charge you, they can provide a much bigger market for you to choose.

Advisors charge you as they reduce the time for you to shop about! Just simple.