So sellers will just 'stay put' in the current market, eh?

IveSeenTheLight

m00m00 wrote: »

and as I bought with cash, outright, negative equity isn't an issue. As for it's actual value, I don't care. My mum lives there rent free, and she will do that as long as she lives, I can't put a value on being able to provide security like that.

Very True.
This is why we all want to buy our own property, so that we can be rent free and secure in the future

AceCobra1

Jazzypap wrote: »

Only a few months ago Base Rate forecasts of 4%-4.5% for the year end were common, but now some experts are speculating on how many base rate increases we’ll see before inflation is under control.

I don't quite understand... why would the BOE increase the base rate and therefore other banks increasing thier interest rates? is it because the banks which lent the money to high risk customers got burnt ? Or is there another reason??

ianmr65

!!!!!!? wrote: »

Grim though the market is, I'm not aware of any real difficulty getting a 90% LTV mortgage of up to 3.5x salary, assuming a decent credit record.

Perusing the best buy tables at the weekend the best fixed rate deals are tending towards 70% LTV.

This tells us that the banks are starting to price the HPC in, and are looking for customers with lots of equity. This will only get worse as the HPC starts to bite.

The banks are also starting to reject customer-side (estate agents & surveyors) valuations in prefeference to their own, much lower ones.

This is effectively a double whammy for buyers, and worse for sellers.

Today

House on the market for £300k, Bank value's it at £250k, and ideally want to lend at 70% LTV - The buyer needs £75k deposit/equity, to get the best mortage deal, as well as having to try to get seller to knock £50k of the asking price!! Mulitiply that scenario by 3 or 4, for an average chain and you'll see why the number of completions is at the lowest since records began.

A years time......

Similar house on the market for £260k, Bank value's it at £200k, and will only lend at 70% LTV - The buyer needs £60k deposit/equity, to get a svr mortage as well as having to try to get seller to knock £60k of the asking price!! Mulitiply that scenario by 3 or 4, for an average chain and you'll see why the housing market has ground to a halt

:eek: :eek: :eek:

WTF?_2

ianmr65 wrote: »

Perusing the best buy tables at the weekend the best fixed rate deals are tending towards 70% LTV.

..

A years time......

Similar house on the market for £260k, Bank value's it at £200k, and will only lend at 70% LTV - The buyer needs £60k deposit/equity, to get a svr mortage as well as having to try to get seller to knock £60k of the asking price!! Mulitiply that scenario by 3 or 4, for an average chain and you'll see why the housing market has ground to a halt

:eek: :eek: :eek:

Lovely, that should smack the market in the head with a dose of reality.

However, I don't see lending moving to 70% LTV only. Of course you'll get a better deal at 70% LTV than 90% LTV, you're supposed to.

10% deposit is going to be the basic requirement for a mortgage loan. Though the way that some people are squealing you'd think that a 10% deposit represented an amazing feat of saving and the height of prudence. I guess they still think that 100% LTV deals or 95% with an ultra-cheap 2-year fix are going to be back sometime soon :rotfl:

lostinrates

all of the above suits me fine, selfishly. It means i'm competing ith fewer other buyers and that our savings really will make a difference in a system where record and result count as much as enthusiasm to own when making a mortgage application.

Reds-on-Sea

People are probably wanting to sell now because they know that if by chance they do sell soon, then they'll be getting more money for their house now than they will be for a long, long time. Years maybe.

There will always be people who want to buy houses, and why not put yours up for sale on the off chance that you'll still get a good price for it. We've passed the Property Hump, and are on the way to the Property Slump. If they sell, woohoo, go rent and buy somewhere cheap in a years time. It may not be a good price compared to 12 months ago, but it's pretty much guaranteed to be a good price compared to 12months from now right?