Banks creating a market crash?

Pez2

ukwoody wrote: »

Evening all,
As an outsider to the mortage business, but living with a broker, it seems to me personally that with all the banks withdrawing all these LTV ratios and 100+ morts, along with much more stringent borrowing qualifications, that they almost seem to be panicking thus creating a stiffied housing market. All of their own making.

I know here in an area of low income, she is finding it harder and harder to place even relatively simple cases.
What do you guys think?

woody

The banks don't have a choice in this. The 'credit crunch' means that their isn't as much money available to lend, and it's inevitable that if they're cuting back on their lending then they'll cut the riskier products first. As people have pointed out above, most of the conditions that they're now insisting on were the norm before we entered the recent credit boom.

Datasafe_2

UK007BullDog wrote: »

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:

You have not read what m.colak wrote have you? :rolleyes: If that happened to me I would feel very ripped off. But hey, you must be very touchy if you feel the need to justify yourself in nearly every thread on here of late.

Pobby

Hmmmm,just read the above posts,most really draw on ``creative finance`` or worse.It went like this in the 70`s.Save up 10%.Go cap in hand to a building society,having already got your deposit in there savings account.Ask for a mortgage.Employer then proved your income.Building society,if approved,would let you know when funds were available.All loans were based on strict multiples of incomes.

No capped,discount,cascading,stand on ya head and kiss ya !!! type deals,just one criteria.With good fortune we bought our house.

Steady old lump of wage inflation soon blew away the debt.Another story.

No doubt about it,the lenders have created an almost surreal set of mortgage deals.Add a raft of amatuer buy to let folks jumping in .No wonder the price of houses are wherethey are now.

UK007BullDog

Datasafe wrote: »

You have not read what m.colak wrote have you? :rolleyes: If that happened to me I would feel very ripped off. But hey, you must be very touchy if you feel the need to justify yourself in nearly every thread on here of late.

I did read it but all he does is complain and brush us all with the same brush instead he should take responsibility and should have asked BEFORE what the costs are.

Yup, but I must be writing interesting stuff as you are reading it. Also your pastime seems to be broker bashing.... Jealous???? :rotfl:

dunstonh

I wonder what all these people that complain about paying for a service do for a living? Surely they cannot be working and being paid for it.

owitemisermusa

So it's blame the brokers' time now is it?

Puuuuuleeeeeeeeeeeeease! We are all responsible for this mess and the sooner we stop the blame game, the better.

Open your eyes, we all have to attempt to fully understand what we're being sold.

You see people on TV and all they can say is "they shouldn't have lent me money if they knew I couldn't pay"

Please let's all sober up and find solutions to this mess. Don't get me wrong, the financial services industry has a role to play (and indeed some people should go to jail for criminal acts) but as a nation we should examine the root cause(s).

I also think the introduction of money and debt/financial management into the school curriculum should be encouraged so our youngsters can learn early.

Sure, 2 years ago, I wish someone had explained to me the concept of 'negative equity' but am I blaming anyone now? NO.

I am very fortunate that I didn't join the 125% bandwagon. We should all try to deal with it, that's why I love this site/forum - its many boards DEAL WITH STUFF!

That's my 2c/2p/2k/2s

owitemisermusa

UK007BullDog wrote: »

I did read it but all he does is complain and brush us all with the same brush instead he should take responsibility and should have asked BEFORE what the costs are.

Yup, but I must be writing interesting stuff as you are reading it. Also your pastime seems to be broker bashing.... Jealous???? :rotfl:

add to that house price crash mongering......

m.colak

I can afford my mortgage i have already stated that thank you. I could even afford it if the BOE went up 2% unlike some. Therefore i haven't done the cap in hand bit nor bitten off more than i can chew. I did ask what their fees were and moneysupermarket phoned me back asking me why i hadn't followed it up and were surprised when i told them about the £600 fee. They phoned the bloke who phoned me again and confirmed the fee. So i'm not nieve i'm not stupid and two out two mortgage brokers i have found so far are greedy. So at this moment the percentages are against you. I don't resent paying for something i get but when half the company's won't use you and some of you don't get the job done its funny how can you say your professional.

As for the original rant yes were all to blame in the chain. The buyers who want to make a quick profit, the estate agents/mortgage brokers for assisting in this business and the banks for helping them over stretch themselves. Do i feel sorry for anybody whom can't afford their mortgage??. If its a genuine case where bad things have happened to them yes i feel sorry for them. Anybody who has stretched themselves beyond their own funds NO.

Guy_Montag

Dan_Collins wrote: »

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.

Ooooh! What's fastrack? Do tell - I like to be in the know

Dan_Collins_2

Guy_Montag wrote: »

Ooooh! What's fastrack? Do tell - I like to be in the know

Fastrack is when a lender does not ask for proof of income. So you have a client with a cracking credit score and a 15% deposit and a lot of lenders will not ask for income. Woolwich have more or less dumped this now. But if you think about it, you have an employed builder or plumber who does a lot of cash work at weekends, but you cant prove it as its cash, then you dont have to use a self cert mortgage. halifax will do this up to 90% LTV with a score.

Next big thing to crumble if you ask me.