Have viewings slowed or stopped?

trulysaintly

BobProperty wrote: »

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.

Forums can be part of the problem - supposedly 'wise people' post observations based on what the papers promote - without knowledge of the mortgage market. Not getting at you Bob specifically but attitudes of some on here when 'giving their view' borders on scaremongering - oh it must be true I've seen it in the paper.....

Lenders did not offer 125% loans unless there were good underwriting reasons for doing so. In the US they weren't even bothering to check that people were employed...

We had "liar loans" here.

There is a difference between 'liar loans' and irresponsible lending - the latter was what happened in the US.

Now maybe, but when it was easy money the checks weren't being done or were being bypassed.

Incorrect Bob, I worked as a Mortgage Underwriter for a major high street lender and checks were being made - it was only the self cert market that had problems - which the FSA were right on top of.

About 3-4 years then?

No about 6-8 months...predictions at the moment from analysts are that interest rates will be 3.5% by this time next year - and guess what happened the last time they were that low?????

House prices rose. The housing market is not crashing, it is just correcting in some areas.

tomstickland

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 they going to do anything? Did you see the government pleading with banks to pass on the rate cuts a few weeks ago?
They will be rather upset by the change in sentiment now that the "magical perpetual get rich merry go round" is going into reverse.

Here's a handy fact sheet I've just made up:
"
-it's different this time.
-the UK economy is different from other countries
-first time buyers won't buy because they all expect a 4 bedroom mansion as their first home.
-the government won't let it happen
-the credit problem is just "a blip" and [strike]spring[/strike]summer bounce is yet to happen
-rents are rising at 50% per month and soon it'll be cheaper to buy than rent"

It's salary multiples that govern house prices, not the interest rate. If the banks decide to stay cautious then interest rates of 1% aren't going to give us more price growth.

Do you think it's possible to have endless growth?

trulysaintly

neverdespairgirl wrote: »

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.

I agree with some of your points, but the BoE have a big responsibility here - although inflation is one of their remits, they cannot ignore the fact that consumer spending is down - as utilities go up.

Blame Gordon Brown...BoE hold the trump card in all of this. Lower interest rates encourage borrowing - Melvyn King must have his fingers, toes and kahunas crossed at the moment, because he's got a big decision to make tomorrow....

tomstickland

The point is that we've had too much borrowing going on and the time has come for things to revert towards are more healthy level.

RoyTheBoy_2

My advice is this : If you are having trouble selling your property through an Estate Agent - do this ( I Did, worked a treat!)

Phone the estate agent and say that you haven't had many viewings and are worried about the 'current climate'. We sold our house, simply by putting pressure on the estate agent. They are there, after all, to market your property.

Ask them these Q's:

1) How many times has my property been advertised in the local paper? If so, can I have a copy of each one? (You will find that they don't advertise often, if at all - cost too much)

2) I want a list of how many hits I've had on the websites (such as rightmove etc) where you have advertised my property.

3) I want regular contact, and if I don't get a sale within 4 weeks, the 'commission' will reduce by .5%.

Use this - it will help alot. I know it's aggressive, but you pay them for a service, so tell them wot to do!

It worked for me recently.

Good luck

trulysaintly

tomstickland wrote: »

How exactly are they going to do anything? Did you see the government pleading with banks to pass on the rate cuts a few weeks ago?
They will be rather upset by the change in sentiment now that the "magical perpetual get rich merry go round" is going into reverse.

Here's a handy fact sheet I've just made up:
"
-it's different this time.
-the UK economy is different from other countries
-first time buyers won't buy because they all expect a 4 bedroom mansion as their first home.
-the government won't let it happen
-the credit problem is just "a blip" and [strike]spring[/strike]summer bounce is yet to happen
-rents are rising at 50% per month and soon it'll be cheaper to buy than rent"

It's salary multiples that govern house prices, not the interest rate. If the banks decide to stay cautious then interest rates of 1% aren't going to give us more price growth.

Do you think it's possible to have endless growth?

It's not possible to have endless growth, but you can't keep comparing our economy with the US and Europe on one hand and then saying that it's different to everywhere else the next minute...which is what some posters on here claim.

Rate cuts that don't get passed on only happen when you are on the Lender's Standard Variable Rate - if you are on a Tracker Mortgage linked to the BoE rate, your payments HAVE to be adjusted in accordance with BoE.

Fixed Rate prices are set on the cost of funds on the Money Markets - this is where the problems were when banks stopped lending to each other.

But, it comes back to this point - forget houses for a second. If interest rates reduce, people will feel more confident about spending.

That's the balance the BoE have to get right. For the last six months they have bottled it big time.

Rover

Who is Melvyn King ?
I would suggest Mervin King sleeps very well at the moment. He has a longer mandate than the current Government and more significantly has warned of the market excesses for some time.

The time to cut interest rates was 2005 under his predecessor, Eddie George, this opportunity was declined due the effects of terrorism on the moral of the Country and the economy. It's too late now I'm affraid and both the BoE and The ECB HAVE TO CONCENTRATE on rampant inflation.

trulysaintly

poppy10 wrote: »

O HI!

http://www.bradford-bingley.co.uk/mortgages/self-cert/index.asp


KTHXBYE :beer:

Oh sorry...by the way you won't get a Self Cert mortgage at the moment without your application being underwritten....you may not need to confirm your income but your employer would be contacted to verify your employment...

Rover

Truly. You will see month by month falls of average UK selling prices.
It's simple economics I'm affraid. You may stagger blindly believing what you wish, but you'll accept it sooner or later.
Anyone seen Hearts or Running Bear recently..............

tomstickland

But, it comes back to this point - forget houses for a second. If interest rates reduce, people will feel more confident about spending.

Yes, but a large proportion of the spending over the last couple of years been using loans secured againts the notional value of houses. ie: house price inflation has created an illusion of wealth for some people. Since you agree that we can't have endless growth, there has to be a shrinkage of house prices at some point. Meaning that all we end up with a load of non-existant money that has been spent and now has to be paid back. Cue cutting back of expenditure, slowing of economy, recession.