The label does not mean that, literally, you read the Daily Mail.
I assume the rest is correct though as you don't have issue with it.
And you ignore a direct question. Again. Oh well - night night, sleep tight.
Mortgages look like they are getting more difficult to get.
- Thread starter larus
- Start date
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The label does not mean that, literally, you read the Daily Mail.
I assume the rest is correct though as you don't have issue with it.
And you ignore a direct question. Again. Oh well - night night, sleep tight.
Beach Hut
Brighton Bhuna Boy
Why should I tell you how I think reached a secure financial route when I am not prepared to tell you mine ?
You guess quite a bit without any foundation which is not very good.
cjd
Well-known member
Are you saying then, that it was more affordable in the seventies than now.............I find this odd, as we have more disposable income now, than in the seventies, so presumably your argument means that LESS people are buying their homes now than in the seventies.
I have no statistical info on this, but my memory of the seventies, was that less people were buying their houses then, than they are now.Perhaps you have access to the statistics on home ownership, then, and now....?
It would make interesting reading.
cjd
Well-known member
Just looked up some figures from the National statistics.........
In 1981, there were 12 million owner-occupied buildings.
In 2003, there were 18 million owner occupied buildings.
Maybe this suggests that the "old" system of Building Societies, inhibited the growth of the owner-occupied sector, and that the access today from all over the world for funds is a better system.....?
Yes, which is why we have our mortgage with Nationwide. Still mutual and no shareholders to please just borrowers and savers.
Uncle Spielberg
Well-known member
Mortgages are getting more difficult to get it is very true. the lenders are running scared and not just the sub prime market. The High Street lenders are much stricter in the credit scoring systems whereby 4 out of 10 mortgages are declined at this initial stage. They are turning away people who they would have lent to 6 months ago.
Also the loan to value is decreasing at an alarming rate. All the 125% mortgage products have gone, there are a handfull of 100% mortgages now as most have been withdrawn and even 95% is getting harder. I also can see the higher lending charge kicking in at under 90% now as it used to do in the past. Lenders invariably do not charge this at loans to 90% or some 95% but I expect this to be reviewed and this fee can add thousands to the mortgage.
Lenders rates are going up even though the Bank rate is going down. Lenders have altered their tracker rates , ie 6 months ago it may have been 0.39% below bank base rate, now it could be 0.4% above bank base rate , therefore even with a 0.5% fall in bank base rates you are paying more. Fixed rates are not falling as its costing the lenders a lot on the markets to get the money.
Lenders are worried about the housing market and which way it will go and the credit squeeze and arrears and repossessions. People with clean profiles are finding it much tougher to get money , anyone with a bad credit file may find it impossible.
I am always available for advice or rates. PM me if you want.
Also the loan to value is decreasing at an alarming rate. All the 125% mortgage products have gone, there are a handfull of 100% mortgages now as most have been withdrawn and even 95% is getting harder. I also can see the higher lending charge kicking in at under 90% now as it used to do in the past. Lenders invariably do not charge this at loans to 90% or some 95% but I expect this to be reviewed and this fee can add thousands to the mortgage.
Lenders rates are going up even though the Bank rate is going down. Lenders have altered their tracker rates , ie 6 months ago it may have been 0.39% below bank base rate, now it could be 0.4% above bank base rate , therefore even with a 0.5% fall in bank base rates you are paying more. Fixed rates are not falling as its costing the lenders a lot on the markets to get the money.
Lenders are worried about the housing market and which way it will go and the credit squeeze and arrears and repossessions. People with clean profiles are finding it much tougher to get money , anyone with a bad credit file may find it impossible.
I am always available for advice or rates. PM me if you want.
larus
Well-known member
- Thread starter
- #47
All this crap about people not being able to afford houses due to the demise of Building Societies and the 'rise' of Banks is just crap. Absolute bollocks.
The plain and simple fact for the problem in people being able to afford houses is supply.
There are now many more people who live by themselves compared to 20,30,40 years ago. There has not been the increase in the stock of houses. Basic economics tells you that if demand goes up and supply doesn't then proces rise.
It's got jack shit to do with Multinational banks, shareholders, etc (not even Maggie Thatcher can be blamed for this, though I'm sure the lefties will have a bloody good try).
The plain and simple fact for the problem in people being able to afford houses is supply.
There are now many more people who live by themselves compared to 20,30,40 years ago. There has not been the increase in the stock of houses. Basic economics tells you that if demand goes up and supply doesn't then proces rise.
It's got jack shit to do with Multinational banks, shareholders, etc (not even Maggie Thatcher can be blamed for this, though I'm sure the lefties will have a bloody good try).
Uncle Spielberg
Well-known member
You speak a lot of truth.
dougdeep
New member
I'm not sure if that is aimed at me or not but I don't believe I made an argument that banks affected property affordability, just that banks and mutual building societies have vastly differing raison d'etres.
Uncle Spielberg
Well-known member
Bozza is right. The Nationwide Bs are the best lender long term with the rates they offer new and existing borrowers.
cjd
Well-known member
Sorry................thought I was replying to the organ-grinder................not the monkey.
cjd
Well-known member
I wouldn,t doubt they are at present.............but can they supply the whole country with funds...?
beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 36,019
theres more issues than simple supply, for a start increased demand from people building property assets due to pension changes (ironicly under a labour government).
but there is a cronic supply problem too, and one that isnt going to be fixed by building a load of shit Barratt homes in the Thames Esturary. in addition to people living on their own there is also a problem of people living longer and continuing to live in large family homes, often in the propserous areas where the young work. my parents and my other halfs parents are rattling around in 4 bedroom houses while we are stuck in a 1 bed flat. it looks over a steet where there are a dozen 3/4 bed houses of which only 4 seem to be occupied by families. but what can you do about that?
I dont have any answer to this, but until its raised and address by the politians there wont be a workable solution. we might like to think about what happens to property prices in 20-30 years time as the 50s and 60s generations shuffle off this mortal coil and all those houses are on the market. especially what will happen to the proposed cheap and nasty houses being touted as a solution. the word slum springs to mind.
Uncle Spielberg
Well-known member
Abbey are the best High St lender with a flexible view and want to do business at the moment
eastlondonseagull
Well-known member
The housing market is f***ed at the moment, slowed down almost to a halt where I am. Ours has been for sale for nearly a month now, but barely a sniff. Estate agent's already telling us to reduce price, which I'm loathe to do considering the time and money we've spent doing it up. A year ago it would've gone in a fortnight for over the asking price - now, we'll be lucky if we sell it at all 
.
.
Uncle Spielberg
Well-known member
I have several clients who want to move but cannot sell. An option is a buy to let re mortgage and a new purchase with penalties on neither.
Uncle Spielberg
Well-known member
Generic information only, advice can only be given individually on full assessment from a fact find.
eastlondonseagull
Well-known member
Interesting, US, thanks. Isn't buy-to-let a bit risky in current climate, though? The trouble we've got is that we need to move to a bigger chouse because of our growing family, so we really need a good profit from selling this place to cover the deposit on new place.
.
Uncle Spielberg
Well-known member
In theory you can re mortgage on a buy to let, raise the deposit from this for the new mortgage and get a new mortgage for the new property. PM me and I can e mail rates and see if its possible.