MSE News: Bank funding scheme unveiled to aid household lending
Comments
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Butterfly_Brain wrote: »So the government want to lend tax payers money to the banks at low interest rates, so that the banks can lend it back to taxpayers i.e small businesses and home buyers at a higher interest rate,
Banks need secure lines of finance in order to operate. Without funding, the availability of new mortgage money for mortgages would collapse totally. The situation is potentially very serious.0 -
rogerblack wrote: »A tiny fraction of 80 billion would build enough houses to eliminate the housing shortage, making houses lots more affordable directly.
The current housing shortage is around a million houses.
It's expected to grow to 2 million houses by 2020.
It would cost in the region of 500 billion pounds just to eliminate the current and projected shortfall by 2020. That's in addition to current and projected build rates, and it's assuming the houses could be built on a not for profit basis by the government using economies of scale.
To put that in perspective, half a trillion pounds is 500% of the current annual deficit, and 50% again of the entire UK national debt.
It's simply not going to happen....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »The current housing shortage is around a million houses.
It's expected to grow to 2 million houses by 2020.
It would cost in the region of 500 billion pounds just to eliminate the current and projected shortfall by 2020. That's in addition to current and projected build rates, and it's assuming the houses could be built on a not for profit basis by the government using economies of scale.
To put that in perspective, half a trillion pounds is 500% of the current annual deficit, and 50% again of the entire UK national debt.
It's simply not going to happen....
of course there are some scary numbers here but assuming a house lasts for 100 years then the 'per year' cost, reduces from 50% of national debt to only 0.5% of national debt so maybe a worthwhile investment
and of course if it succeeds in stimulating the economy so we start growing again, the tax take will rise and benefits bill will fall
basically building houses seems a good idea at the moment althouigh of course there are no good ideas the government can't muck up0 -
I blooming hope so. We could afford a property standing on our heads and the mortgage payment. What is ridiculous is us paying rent plus trying to save for this stupid deposit which is going to take us about three years because rents are so high. No logic.Bankrupt June 15th 2009. Early discharge granted March 4th 2010. Nose completely clean ever since. Got a barclays and co op basic account with debit card, own mobile contract, own gas and electric, own landline, own vanquis credit card which is paid off in full each month. Credit files cleaned up and all say satisfied.
:beer::T:A0 -
tricklesthegreek wrote: »I blooming hope so. We could afford a property standing on our heads and the mortgage payment. What is ridiculous is us paying rent plus trying to save for this stupid deposit which is going to take us about three years because rents are so high. No logic.
So long as you can with interest rates at fifteen per cent then Fair enough, current rates are so low because of the last !!!! up in lending.
Credit to you sorting things out from your Tag line, but you are only two years out of bankruptcy, would you lend money to you?0 -
tricklesthegreek wrote: »I blooming hope so. We could afford a property standing on our heads and the mortgage payment. What is ridiculous is us paying rent plus trying to save for this stupid deposit which is going to take us about three years because rents are so high. No logic.
That's the price one pays. Saving for a deposit does take time. To a lender it gives reassurance as to financial discipline of the borrower.0 -
Sunday Times......
..... is reporting that Merv has told the UK banks to run down their cash reserves in a surprise U turn that will raise the value of last weeks 140bn lending package for the economy to £300bn.
Analysts estimate the radical shift in cash reserve policy will see an additional £150 released to mortgage and small business lending, in addition to the £140bn announced last week.
Allowing UK banks to hold less on deposit and carry less in Gilts could lead to a huge move in financial markets, with banks using the cash to buy mortgages and corporate bonds.
Much of the money created through QE could then move from the banks balance sheets into the real economy, resulting in massive levels of stimulus for the real economy not yet seen throughout the financial crisis to date.
The BOE has been the most conservative in the West during the crisis, with the amount of cash banks have been ordered to hold on reserve a key bone of contention.
"I am now holding so much money in cash reserves I could lose every single big commercial deposit and every short term funding line and still have billions and billions and billions left in reserve." said one bank CEO. "That money is just dead. It does not move through the economy."“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
business_man wrote: »About time house prices went up too. I think its time to stock pile FTB properties if you are looking to sell them for an instant gain.
British economy has suffered quite a bit in the last year so I think we are going to see a temporary boost.
Just my opinion , House prices will fall is out of the question now, we need to monitor how the market reacts to the news and how it reacts to the lending.
"Prices are going one way, you need to see a lawyer."
Just corrected that for ya fella.........;)
Are you Fungus Wilson trying to off load your property empire.0
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