A REAL Mortgage Crisis Coming?

nelly_2

adr0ck wrote: »

Post Office are now doing a 3 yr fix at 5.34% with £399 fee LTV 95%

seems pretty good to me (the low fees a real winner)

yeah apr of 6.7 % not very good actually


and


the low fees a real winner <---- the £400 fee is hardly gonna dent the fact houses are way too expensive....unless you are a proper moron that is.

kingkano

!!!!!!? wrote: »

People who bought in the last 2-2.5 years are going to be seriously looking at negative equity.

People who MEWed up to the armpits, likewise.

Pretty much everyone else isn't going to be hurt too badly by lower prices per se. In fact, lower house prices benefit more people than they disadvantage.

However the problem is that so much of the economy now depends on borrowing that the knock on effects are going to be nasty for all. This is a result of some extremely bad government policies (most of the Western govts, not just the UK) and some very bad banking practices.

mmm so people always say. But it doesnt look like that to me. Who does it really benefit??

Tradedowners/cashinners - now get less money from their place. Their tradedown will cost less but as we already calculate with tradeuppers before, they will get less money.

Tradeuppers - their property has come down, the one they want has come down, the difference is now less. All fine and dandy. But their deposit etc is all wrapped into their current property. The prices dropping is going to have bitten into that severely. On top of this they now cannot borrow anything like before so cannot afford even the reduced price of their proposed trade-up.

FTBs - probably the most likely to benefit. Except because prices are dropping, banks won't lend much anymore, and you need a big deposit. So they waited because everyone said prices will come down, and saved, but now they still can't borrow enough to get a place, and they needa 25% deposit which means they still need to save.

I think some forgot that a crash or 'lower house prices' would also bring quite a climate change to lending practices and the greater economy overall. But now they are seeing it I guess.

talksalot81

Have we forgotten the group who will not find themselves destroyed by a crash? Those who save hard, spend only what they can afford and ensure that they have enough to cover any plausible changes?

Frankly the description above SHOULD be common sense. The fact that it isn't means that modern 'common' people are just less sensible than those that came before them. Stupidity rules in magnolia land (that is the UK for anyone missing the metaphor).

kingkano

talksalot81 wrote: »

Have we forgotten the group who will not find themselves destroyed by a crash? Those who save hard, spend only what they can afford and ensure that they have enough to cover any plausible changes?

Sorry but that's slightly laughable. A crash will bring at the least a recession, maybe even a depression. Your telling me there are people who have 'cover' for not having a job for 2 or 3 years?? (or even a job far substandard to their normal profession) They have cover for their mortgage bank asking them to repay 50% of their loan tomorrow please?? (these are all plausible btw) Interest rates upto 15%?

You just can't plan for every eventuality. Sensible people will have 6mths salary saved, but this won't cover serious things that can happen in a major economic crash. They will last longer don't get me wrong, but you don't hear any stories from the great depression of people saying 'it was nothing, I sailed through'.

wigglebeena

beingjdc wrote: »

Of course they should, but we've been warning people for some time now, and get called scaremongers, doommongers, whatever, and Kirstie Allsop goes on TV and implies that saying house prices are going to fall should be made illegal if you would benefit financially from them doing so. So what is one meant to do?

The ability of people to get a mortgage for £x, and the number of properties which change hands for £x, is intimately linked, so expect a downward spiral as buyers scale back their expectations, selling prices fall, banks reduce LTV further, redo from start.

I missed this, when did it happen? Didn't she benefit as a property owner/speculator from years of going on telly and saying house prices were going to rise? What utter hypocrisy, horrid woman. Clap her in irons!

adr0ck

nelly wrote: »

yeah apr of 6.7 % not very good actually


and


the low fees a real winner <---- the £400 fee is hardly gonna dent the fact houses are way too expensive....unless you are a proper moron that is.

this ia a thread about availability of mortgages

i was pointing out a reasonable mortgage offer thats available on the market at the moment

imo everyone should have a deposit to buy a house (i don't beleive 100% mortgages are sustainable)

by the way nelly you have a wonderful Vocabulary

beingjdc

wigglebeena wrote: »

I missed this, when did it happen? Didn't she benefit as a property owner/speculator from years of going on telly and saying house prices were going to rise? What utter hypocrisy, horrid woman. Clap her in irons!

Last summer on daytime TV - she was asked about housepricecrash.co.uk and people who had sold up because they were expecting a crash. She said they made her blood boil, and that if they did the same thing with shares it would be insider trading and there are laws about it for a reason.

dannyboycey

beingjdc wrote: »

Last summer on daytime TV - she was asked about housepricecrash.co.uk and people who had sold up because they were expecting a crash. She said they made her blood boil, and that if they did the same thing with shares it would be insider trading and there are laws about it for a reason.

That is wrong.

I still find her oddly sexy though (also wrong).

Pobby

Well if you think lending is difficult here,I have a mortgage broker friend on the west coast of the USA who has seen her income drop from over an eye watering $300,000 to zero.For the very few that still want to buy there lenders have become so wary that there are very few mortgage products available.

Jonbvn

beingjdc wrote: »

Last summer on daytime TV - she was asked about housepricecrash.co.uk and people who had sold up because they were expecting a crash. She said they made her blood boil, and that if they did the same thing with shares it would be insider trading and there are laws about it for a reason.

Any bets on when Krusty & Phil's TV series will be pulled?