But, if house prices where lower - the mortgage would be smaller, thus making it easier for people to get a mortgage.
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House prices to crash
- Thread starter Uncle C
- Start date
But, if house prices where lower - the mortgage would be smaller, thus making it easier for people to get a mortgage.
clapham_gull
Legacy Fan
- Aug 20, 2003
- 25,877
But mortgage lenders are resistant to lend that sort of money for something that is dropping in price.
Proving I know nothing which involves numbers and more importantly, money.
clapham_gull
Legacy Fan
- Aug 20, 2003
- 25,877
Do you work for the Greek Treasury ?
Uncle Spielberg
Well-known member
clapham_gull
Legacy Fan
- Aug 20, 2003
- 25,877
Yep, I also get sent to spain somtimes to help them out.
Uncle Spielberg
Well-known member
But mortgage lenders are resistant to lend money.
clapham_gull
Legacy Fan
- Aug 20, 2003
- 25,877
I had trouble getting my first mortgage and it wasn't that long ago. Northern Rock turned me down which is ironic.
I also originally had a mortgage advisor who wanted to lie about my income. I remember him screaming down the phone and telling me I was mad (and wasting money) because I wouldn't do what he said. Only anecdotal and I'm sure most aren't like that - not these days.
We ended going with a bank - at a high interest rate at the time, because my wife company at the time had a deal with them - whereas they could lend slightly more than usual for staff.
On a slightly different point - I look out a small loan to cover some of the expenses and the lender at the time refused to let me have the money unless I took out payment protection with them.
Hasn't that been retrospectively proved illegal ?
I also originally had a mortgage advisor who wanted to lie about my income. I remember him screaming down the phone and telling me I was mad (and wasting money) because I wouldn't do what he said. Only anecdotal and I'm sure most aren't like that - not these days.
We ended going with a bank - at a high interest rate at the time, because my wife company at the time had a deal with them - whereas they could lend slightly more than usual for staff.
On a slightly different point - I look out a small loan to cover some of the expenses and the lender at the time refused to let me have the money unless I took out payment protection with them.
Hasn't that been retrospectively proved illegal ?
Spanish Seagulls
Well-known member
That is a MoneyWeek chart & is very true as an indicator. I predicted that this would happen as affordability was the key factor & it is all out of sync. There is going to be a good time for 1st time buyers to come but everyone actually owning have just got to sit tight & hope this government don't screw everyone & raise interest rates.
Uncle Spielberg
Well-known member
Look interest rates are artifically low. They will go up. That is inevitable. The only question is when.
Don Quixote
Well-known member
- Nov 4, 2008
- 8,362
Interest rates will not be low forever. They want a bit of inflation at the moment to help with the debt but as soon as it gets too high interest rates will be put way up. Then we will start to see the housing market crash.
Uncle C
Well-known member
- Thread starter
- #274
There is only ONE reason why houses do not sell. They are too expensive.
If every house was marketted at at a price of 1 penny then 100% of them would sell. So the real value of any house is not what the Estate Agent says, not what the homeowner thinks, but it is somewhere between 1 penny and the price it refuses to sell at.
Get that right, and every house will sell.
Uncle Spielberg
Well-known member
That is not the reason. If people want to buy at a price but cannot get the finance to do it this does not mean the property is overpriced.
dazzalewis1968
Member
- May 22, 2008
- 570
Makes Nero sence what your saying !
A house is worth what a buyer wil pay for it.
Every property finds it's level.
Uncle Spielberg
Well-known member
That is correct. The house price crash if it happens will be down to the mortgage lenders and valuers. People still want to buy and at the prices now but most of them can't as they cannot get a mortgage. I am not over egging the cake here. People do not realise just how dire the mortgage market has been for 3 years and it will get worse as the bailed out banks who are doing most of the lending now will stop lending as they have to pay the loans back shortly. Unless there is a solution to the funding and liquidity problem the whole housing market will come to a complete standstill and that will force prices down.
Uncle C
Well-known member
- Thread starter
- #278
Sorry, but I think it does. If the vendor reduced the price two things will happen
1. The people searching a mortgage might get one at the lower level.
2. New buyers will enter the arena.
So keep reducing it and it WILL sell long before it reaches 1 penny.
Lack of mortgages has an influence on what people can afford, not on setting realistic house prices. The free market does that.
Uncle Spielberg
Well-known member
I am sorry but you are wrong.