Freeze on mortgage lending to hit house prices

mystic_trev

Todays 'offering' is from the Sunday Times. The usual 'bullish' Fionnuala Earley, from Nationwide, has suddenly turned 'Bear' As they say......there may be trouble ahead!

NATIONWIDE, Britain’s biggest building society, has warned that house prices could drop 5% this year because of the credit crunch. It is the first of the big lenders to publicly say values could fall. Its official forecast, and that of rival Halifax, is that prices will be flat this year. Fionnuala Earley, chief economist at Nationwide, said: “We have always thought there was a risk of falls of up to 5% if the financial unrest carried on for longer than anticipated.”
The prediction comes amid widespread fears of a mortgage “famine” as lenders rein in their lending.

http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article3601935.ece

Beth looks a bit of a babe I wonder why she's hanging out with that gimp:rotfl:

Lotus-eater

With a mortgage of £198,000, she believed the property to be worth £220,000 and therefore needed to borrow 90% of the value of the property. However, Abbey said the 2-bedroom flat was worth just £200,000, taking her mortgage to 99% of the property value – but it does not offer loans on such high values.
I know squat now keeps saying this will happen, but unless I have moved home, I have never had a valuer come to my house to value it when I have changed mortgages. Is it something that will happen more, or does it just happen when you have a high LTV?

Caffca

mystic_trev wrote: »

Beth looks a bit of a babe I wonder why she's hanging out with that gimp:rotfl:

Odd name for a bloke - Kathryn! Wonder if he/she is mid-op?

I think 5% is probably about right - not that I am qualified in anything financial just looking at what prices have been doing in the areas I'm interested in.

mystic_trev

Survreyors are covering their @rses, particulary where [STRIKE]Luxury Apartments[/STRIKE] Flats are concerned!

PeteMc

Odd name for a bloke - Kathryn! Wonder if he/she is mid-op?

:rotfl:

The picture is of Karl and Bethan Bruen, of Halstead, Essex. There is a case story further down the article.

Elizabeth Colman and Kathryn Cooper are the authors of the article.

Caffca

PeteMc wrote: »

:rotfl:

The picture is of Karl and Bethan Bruen, of Halstead, Essex. There is a case story further down the article.

Elizabeth Colman and Kathryn Cooper are the authors of the article.

Ooops! Think I need to brush up on my speed-reading skills again then

BobProperty

Lotus-eater wrote: »

With a mortgage of £198,000, she believed the property to be worth £220,000 and therefore needed to borrow 90% of the value of the property. However, Abbey said the 2-bedroom flat was worth just £200,000, taking her mortgage to 99% of the property value – but it does not offer loans on such high values.
I know squat now keeps saying this will happen, but unless I have moved home, I have never had a valuer come to my house to value it when I have changed mortgages. Is it something that will happen more, or does it just happen when you have a high LTV?

SquatNow, as he frequently does, is talking "wishful thinking" from his unique perspective. He has yet to show any proof that BTL mortgages are subject to margin calls and Generali(?) checked out the biggest BTL lenders (Mortgage Express, etc.) and none have margin calls in their products.
The subject of this quote was re-mortgaging because it looks like an initial deal was ending (she said she bought 2 years ago) and she thought she could get a better deal elsewhere. There is nothing to stop her not re-mortgaging and just continuing on her original lender's SVR. It's usually just moneysaving to do so, which is why we are here. There was no question of her being forced to re-mortgage otherwise that would have been front page news on several papers.

merlinthehappypig

I think squatnow is a 'she', rather than a 'he', but I might be wrong.

BobProperty

merlinthehappypig wrote: »

I think squatnow is a 'she', rather than a 'he', but I might be wrong.

SquatNow has a girlfriend, and hasn't been around for a few days. I'm sure he(she) will have a few comments to make when he(she) gets back. Hopefully he(she) isn't "helping Police with their enquiries" in connection with breaking and entering empty properties and is merely taking a break from here.:D

merlinthehappypig

Odd isn't it. You assume things from posts people have written. I bet none of us are actually anything like the pictures we might have in our minds.

I'd always had squatnow down as a man, but a thread a few days ago referred to him (her) as a 'she'. As the poster who said this was vastly more experienced on here than me, I assumed that I had always been wrong.

Numbnutz_2

merlinthehappypig wrote: »

Odd isn't it. You assume things from posts people have written. I bet none of us are actually anything like the pictures we might have in our minds.

I'd always had squatnow down as a man, but a thread a few days ago referred to him (her) as a 'she'. As the poster who said this was vastly more experienced on here than me, I assumed that I had always been wrong.

Squatnow is probably several different people (kids) from some 6th form Politics class.