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Comments
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It's no use Conrad. The sheeple don't understand that. They want to believe their property is invulnerable to significant falls in value, despite more than willing to believe it's risen 50%, 100%, 200%, 300% over just a few short years.
They will learn when a neighbour in a near identical house is forced to slash 40% off in order to sell. That will smack their own fairytale valuations down in one go.
Blimey, what a bundle of sunshine you are eh??
Based on what you say, it seems that all the estate agents are wrong and you're right....I take your point about the country 'in general' - but you have to concede that there are areas of the country that retain value for people - admittedly there will be some inner city areas where prices may drop like a stone, but 20% drop???
It won't be allowed to happen by the 'powers that be' - there is too much riding off the back of the property market for the BoE to do nothing - the fact that they should have dropped rates last November is another thing entirely...
Ever thought of giving Gordon Brown a call?:A Born a Saint, always a Saint!I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
trulysaintly wrote: »Blimey, what a bundle of sunshine you are eh??
Based on what you say, it seems that all the estate agents are wrong and you're right....I take your point about the country 'in general' - but you have to concede that there are areas of the country that retain value for people - admittedly there will be some inner city areas where prices may drop like a stone, but 20% drop???
Even Savills the EA's have recently suggested 25% drops. Given that they have a vested interest, what do you think is likely?In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
That will smack their own fairytale valuations down in one go.
Dont forget, these valuations are coming from trained "professionals".
When i had my apt valued for sale the surveyor said it was worth £140k but to put it in for £135k.
By that logic, how can it be worth £140k when i have to put it in at £135k for it to sell?
Are they trying to kid themselves that the prices wont go down?
PS. My apt still hasn't sold after 9 weeks on the market with only 6 viewers.0 -
trulysaintly wrote: »It won't be allowed to happen by the 'powers that be' - there is too much riding off the back of the property market for the BoE to do nothing - the fact that they should have dropped rates last November is another thing entirely...
How exactly are the BoE supposed to stop it? Interest rates have been dropping like mad in America, and prices continue to plummet....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
neverdespairgirl wrote: »How exactly are the BoE supposed to stop it? Interest rates have been dropping like mad in America, and prices continue to plummet.
The US and UK Mortgage Markets are totally different.
In the US you could get a mortgage with no income whatsoever as they were not doing sufficient checks on the applicant's suitability to repay.
In the UK since 2004 we have been regulated (some would say a poisoned chalice, others the best thing that's ever happened)...
Therefore...there are lending policies in place with all lenders to ensure that fraud and incorrect applications are minimised - the key to this not snowballing to a situation that many doomsayers :mad: on here love to talk about is this...
Lenders lending the money to people wanting to move.:D
Now had the BoE realised what was happening with UK lenders disappearing last autumn (who were bankrolled by US firms) and reduced rates then, we wouldn't be in such a pickle now.
As soon as confidence returns through the mortgage market, people will start to buy property.
It's not rocket science.:A Born a Saint, always a Saint!I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
That's sounds like a "it's different this time" or "it's different here". Care to explain why, because from where I am, and the forums I go on, it's only the technicalities that are different, the fundamental problems, easy credit, lack of checks, 100% finance exist in both places. You could go further and say it's worse in the UK as the US hasn't got the personal debt levels the UK has and I can't recall any US products that lent 125% LTV.trulysaintly wrote: »The US and UK Mortgage Markets are totally different.
We had "liar loans" here.trulysaintly wrote: »In the US you could get a mortgage with no income whatsoever as they were not doing sufficient checks on the applicant's suitability to repay.
Now maybe, but when it was easy money the checks weren't being done or were being bypassed.trulysaintly wrote: »...there are lending policies in place with all lenders to ensure that fraud and incorrect applications are minimised ....
About 3-4 years then?trulysaintly wrote: »As soon as confidence returns through the mortgage market, people will start to buy property.A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
trulysaintly wrote: »The US and UK Mortgage Markets are totally different.
In the US you could get a mortgage with no income whatsoever as they were not doing sufficient checks on the applicant's suitability to repay.
Now had the BoE realised what was happening with UK lenders disappearing last autumn (who were bankrolled by US firms) and reduced rates then, we wouldn't be in such a pickle now.
As soon as confidence returns through the mortgage market, people will start to buy property.
It's not rocket science.
We aren't really in a pickle - HPI is not a good thing, high house prices are not a good thing either.
The B of E is supposed to have an eye on inflation, not bailing out banks / people in debt.
There are differences between the UK and US mortgage markets, of course. But we had plenty of liar loans here, as well, and "gifted deposits", Inside Track, all sorts of non-Kosher goings-on.
Confidence is the key, but I reckon that's years away rather than months....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
trulysaintly wrote: »The US and UK Mortgage Markets are totally different.
In the US you could get a mortgage with no income whatsoever as they were not doing sufficient checks on the applicant's suitability to repay.
O HI!
http://www.bradford-bingley.co.uk/mortgages/self-cert/index.asp
KTHXBYE :beer:poppy100 -
trulysaintly wrote: »<snip>
Lenders lending the money to people wanting to move.:D
<snip>
can i re-phrase that...
Lenders lending the money responsibly to people wanting to move.
Cheap money has created a housing bubble. Without it prices would never have risen as high. Simple as.
People should accept that prices will fall as the market corrects itself. However, markets have a habit of over correcting.0 -
You're in denial Truly, see my sig.trulysaintly wrote: »It won't be allowed to happen by the 'powers that be' - there is too much riding off the back of the property market for the BoE to do nothing - the fact that they should have dropped rates last November is another thing entirely...
You seem very naive for a mortgage advisor, I presume you are relatively young? Did you have a mortgage or a job in the early ninties?
My house, bought at the peak in the early ninties lost ~30% upon resale in 1999/2000. Another house I owned appreciated ~90% from 2000-2006.
As others have said, expect this 'correction' to last several years. Almost all property will be effected by atleast double digit depriciation.
I genuinely believe the average UK propery price will fall by more than 25% by 2011/12. Furthermore, people far brighter and with more savvy than ourselves, also believe this.
Trust me, 25% is a conservative estimate. Don't be blinkered and don't be a victim.anger, denial, acceptance
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