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Credit Crunch -reports the worst is over
Comments
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I they will raise depoists from their savings, parents, or even personal loans!
I'd be keen to hear from someone a lot more expert than me on this (not very difficult I know
) but my understanding of mortgages is that they will take any outstanding loans into account when making an offer and will offer less mortgage accordingly. I'd also assume they'd take a dim view of getting a deposit via a personal loan wouldn't they? “A journey is best measured in friends, not in miles.”
(Tim Cahill)0 -
I reckon house prices will flatten out over the next few years rather then tank.
They are going to have to Tank to meet todays lending standards. I can't see it flattening as that would mean the vast majority not selling for at least 18 months as the credit crunch continues. There are no signs of this ending as more and more financial organisations collapse. The only way it will stop is the system stabalising which means lenders being able to lend on their savings which is likely to mean 3.5 salary lending.
Today I saw a Estate Agent closed in Chiswick, West London. The whole franchise is up for sale which holds 8 offices. Estate agents are going bust all over the country, prices have fallen for 6 months and now lending has got very tight.
There will be no flattening just a tank back to traditional levels.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
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Errr. I think it's only just begun. The fact is that a lot of credit opportunities have been removed from the market. The only reason house prices have rising so dramatically over the last few years is due to the amount of cheap credit. Now that this is being withdrawn, house prices are going to tank. I just don't see where the money is going to come from to keep it afloat. The BofE may lower IRs but this won't be passed on to the banks. In fact the banks are actively encouraging people not to take out their loans - which is pretty damn extraordinary - A bit like a baker's shop where they don't want to sell cakes.[/quote]
Hmmm, how long would the baker last? not long I guess.
Banks, on the back of this credit crisis are profiteering from existing mortgage holders, surely no one believes their all skint with their £billions of PROFIT.
These greedy bankers need to feed off us, this credit crisis will disappear sooner than you think.0 -
eco-friendly wrote: »These greedy bankers need to feed off us, this credit crisis will disappear sooner than you think.
Check you bank statement - see that mortgage payment? They're still feeding off you; notice the interest paid on your current account? They're still feeding on you.
Market share is a dirty phrase; there's a rush to quality instead"Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
There will be no flattening just a tank back to traditional levels.
The country is changing, more women work, salaries are higher, higher immigration, common market etc etc.
I just don't get the argument that house prices need to fall to such and such price because thats what they were back in 19xx. Or Lenders should only lend 2.5 income because thats what they did back in the day.
The market doesn't care about traditions, and i'm not sure if anyone can tell me what traditional level for a house price is.
maybe we should re-open the mines, get women back in the house and take away the vote...thats traditional as well, but some things are not going to be how they used to be.0 -
Credit crunch... is over... everyone is saved!..
There more to a market than figures... pscyhology, and attitude of the public matters alot tooo alongside the lenders not lending... an awareness has been made... people aren't going to be as frivuolous with mone for a while.
Oh and... -2.5% MoM with halifax... the crash is accelerating..!! YEA0 -
^^ make your mind up :rotfl:
having said that, I'm in two minds myself. On the one hand, I'm still seeing empty estate agent offices and loads of 'for sale' boards but on the other, when we went around the new home developments they were packed with people looking to buy
We know of 4 couples/families now who have bought a house within the last two months0 -
The country is changing, more women work, salaries are higher, higher immigration, common market etc etc.
I just don't get the argument that house prices need to fall to such and such price because thats what they were back in 19xx. Or Lenders should only lend 2.5 income because thats what they did back in the day.
The market doesn't care about traditions, and i'm not sure if anyone can tell me what traditional level for a house price is.
maybe we should re-open the mines, get women back in the house and take away the vote...thats traditional as well, but some things are not going to be how they used to be.
The traditional 3.5X salary was a useful benchmark because it was affordable by the mortgagee when times got hard, so protecting both bank and mortgage holder.
Do you think that a 5x salary IO self-cert mortgage is going to reset to a nice cushy 4.5%? Try 8.5%.
This morning's Halifax data means you might well see 95% mortgages being pulled over the next fortnight. Without credit there is no market.0 -
The country is changing, more women work, salaries are higher, higher immigration, common market etc etc.
I just don't get the argument that house prices need to fall to such and such price because thats what they were back in 19xx. Or Lenders should only lend 2.5 income because thats what they did back in the day.
The market doesn't care about traditions, and i'm not sure if anyone can tell me what traditional level for a house price is.
maybe we should re-open the mines, get women back in the house and take away the vote...thats traditional as well, but some things are not going to be how they used to be.
I think you will find that there was a very good reason for banks only lending 3.5 single or 2.5 joint income 'back in the day' its got nothing to do with tradition just common sense.
West midlands down -5% (in a month)0 -
The market doesn't care about traditions, and i'm not sure if anyone can tell me what traditional level for a house price is.
maybe we should re-open the mines, get women back in the house and take away the vote...thats traditional as well, but some things are not going to be how they used to be.
Its all about sustainability. Todays high house prices were far to vulnerable with nothing tangible holding them up, it was pure speculation. Traditional lending protects against this preventing over inflation and bubbles.
Sticking to it would prevent boom and bust.
2.5% falls in house prices this month.:rotfl::exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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