D
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If you have bought a house for way over its true market value in the last few years..
Cian
Well-known member
Time to move the savings account, methinks.
Uncle Spielberg
Well-known member
The Uk Mortgage markets have caught a cold from the irresponsible lending in the USA. Lending in the UK has by and large been very responsible compared to the USA. In the USA the " sub prime " mortgage market meant that if you had a 5% deposit and a pulse they would lend you the money to buy over inflated priced properties. However these loans have defaulted badly and rates have rocketed meaning a vicious circle of more arrears and on it goes. In the UK the mortgage and financial services market is the most strictly regulated in the world. I doubt very much the self certification, non status and adverse credit mortgages over the last few years that have accounted for a greater increase in the market will have the same arrears problems if rates are kept in check and the lenders keep calm. In the last few days a lot of sub prime lenders have withdrawn or increased their rates stemming the demand for these deals. The high street lenders are still offering 2 year tracker and fixed rates at under 6%. Don't panic Captain Mainwaring. I expect the market to correct itself , some of the smaller lenders who cashed in on a good market will go to the wall but I think it will blow over by Xmas and property prices will not crash.
From the article....
Analyst Justin Urquhart-Stewart of Seven Investment Management said the problem was essentially about confidence in the markets. "We don't know where the poison went from all these bad loans and you have to look at all these bad loans as a bit like a blancmange that's been hit very heavily by a spade...
Racist
BAN him!
Analyst Justin Urquhart-Stewart of Seven Investment Management said the problem was essentially about confidence in the markets. "We don't know where the poison went from all these bad loans and you have to look at all these bad loans as a bit like a blancmange that's been hit very heavily by a spade...
Racist
BAN him!Good, about time the over inflated market started to come down and give all people the right and chance to buy there own homes again.
If your not in a couple, on a council waiting list or in social housing - there is no chance of having a home for life any more.
Prices have spiraled out of control and what with repossesions already going up with the interest rate rises over the last year, It cant be long before prices start falling back down to a reasonable level.
If your not in a couple, on a council waiting list or in social housing - there is no chance of having a home for life any more.
Prices have spiraled out of control and what with repossesions already going up with the interest rate rises over the last year, It cant be long before prices start falling back down to a reasonable level.
Uncle Spielberg
Well-known member
A hate to say this but I do not think prices will drop. Its all supply and demand, the demand still greatly outweighs the supply and whilst that continue's and interest rates are relatively low and mortgage payments are within relative affordability levels ( yes interest rates have gone up 9 times since the 3.50% low but 5.75% Bank base rate is still historically very low and average mortgages are only 30% of net earnings whilst they were nearly 60% in the 80's ) the demand will ensure property prices will stabalise. Also the disasterous and meaningless HIP's this Government brought in will see a further reduction in the supply of 3 and 4 bed houses.
Tom Hark Preston Park
Will Post For Cash
- Jul 6, 2003
- 72,700
'The Bank of England has agreed to give emergency financial support to the Northern Rock, one of the UK's largest mortgage lenders, the BBC has learned.
However this does not mean that the bank is in danger of going bust, Business Editor Robert Peston says.
There was no reason for people with Northern Rock savings accounts to panic, he added.'
Yeah, right, like anybody with a Northern Rock account is NOT going to seriously think about moving their money elsewhere. Watch it all come tumbling down.
However this does not mean that the bank is in danger of going bust, Business Editor Robert Peston says.
There was no reason for people with Northern Rock savings accounts to panic, he added.'
Yeah, right, like anybody with a Northern Rock account is NOT going to seriously think about moving their money elsewhere. Watch it all come tumbling down.
Any rise in repossessions will FUEL the sub-prime market rather than stifle it.
Lenders are greedy and the lenders who have withdrawn from the market recently will all be back with re-vamped products, incentives and the ever-present redemption penalties.
The mortgage market faces a bigger threat from any 'clampdown' in the way self-certification/fast-track mortgages are monitored.
Lenders are greedy and the lenders who have withdrawn from the market recently will all be back with re-vamped products, incentives and the ever-present redemption penalties.
The mortgage market faces a bigger threat from any 'clampdown' in the way self-certification/fast-track mortgages are monitored.
Barrel of Fun
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If anyone is interested. The monthly supplement of the Land Reg market analysis has been released.
http://www.landreg.gov.uk/assets/library/documents/hpir0807.pdf
House prices in England and Wales exhibit slow monthly growth for residential property transactions that completed in July 2007.
Whilst still positive, the 0.1 per cent rate of monthly increase is the lowest rate experienced since June 2006. The change raises this month’s average house price
to £181,460. The annual change in house prices is 8.8 per cent.
The growth rate divergence between London and the rest of the country persists. London and to a lesser extent, the South East, continues to ensure positive house price inflation.
http://www.landreg.gov.uk/assets/library/documents/hpir0807.pdf
House prices in England and Wales exhibit slow monthly growth for residential property transactions that completed in July 2007.
Whilst still positive, the 0.1 per cent rate of monthly increase is the lowest rate experienced since June 2006. The change raises this month’s average house price
to £181,460. The annual change in house prices is 8.8 per cent.
The growth rate divergence between London and the rest of the country persists. London and to a lesser extent, the South East, continues to ensure positive house price inflation.
Anyway, back on topic.
Has anyone picked up on HB&B's thinly veiled request for someone to ask him how much HIS house is worth?
Has anyone picked up on HB&B's thinly veiled request for someone to ask him how much HIS house is worth?
D
Deleted User X18H
Guest
- Thread starter
- #11
!!!!
Beach Hut
Brighton Bhuna Boy
So what is Northern Rocks priorty at present (as it pays top dollar sponsorship to Newcastle).....................
Barrel of Fun
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Edited!
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Bearing in mind the article says that they 'made £300m profit in the first 6 months of this year' I guess that won't be an issue and that this type of funding is already ring-fenced.
This phrase:
"The bank has struggled to raise money to finance its lending ever since money markets seized up over the summer."
would suggest that they have a lot of funds that they are committed to lend, with mortgage offers issued. If they are committed to lend money at say 5.99%, they don't want to be borrowing it from the markets at 6.5%
D
Deleted User X18H
Guest
- Thread starter
- #16
Thats naughty I edited that post as I don't wish to discuss it.
Barrel of Fun
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It has been erased! You should do the same in that case. Sorry!
The Clown of Pevensey Bay
Well-known member
Rather bloody glad I switched my 103% mortgage away from NR a couple of year ago (to become something that was more like 90%, thank Christ)
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cjd
Well-known member
It,s top priority is to put the £150k, I asked for on Tuesday, in my bank next week......!
They normally agree top up loans in about 10 minutes.........took them until this afternoon to give me the ok.