oh crikey: Mortgage lending hits new high

[Alf W]

Shared equity schemes
Mixed repayment / interest only schemes
Property as part of a pension fund
30/40/50 year mortgages
Inter generational mortgages

All mean that people will be able to get more capital for the same monthly outlay which is why house prices have some way to go before they become unaffordable (and then someone re-invents the mortgage again).

Agreed that they are pretty much unaffordable under the old 25 year Repayment 4x your salary model.

[BlasterBates]

Why buy property when you can buy cheap Thai shares.

[contractorcontractor]

I feel sorry for young people, dragged down by Labour's University fees and unable to buy a house because immigrants put pressure on the market & get priority for social housing.

Then there are the old people, with pensions plundered by Gordon Brown.

Britain is looking like a banana republic.

[AtW]

Immigrants often share rooms (!), and 3 people in one room is not uncommon - they are not exactly rich even to afford normal rents, especially not to buy house.

[contractorcontractor]

Immigrants often share rooms (!), and 3 people in one room is not uncommon - they are not exactly rich even to afford normal rents, especially not to buy house.

True and a healthy rental market, even 3 per room, puts pressure on the housing market. First Time Buyers get squeezed by Buy to Lets.

Economics 101.

[Churchill]

True and a healthy rental market, even 3 per room, puts pressure on the housing market. First Time Buyers get squeezed by Buy to Lets.

Economics 101.

Oh Dear CC, didn't you know that AtW is an "Instant Expert" on all things?

[Ardesco]

Thing is - when property bubble burts it is the banks who will get shafted: it is them who will have paid real money for asset that will lose huge chunk of it - a major banking system crisis will be upon us, the best that can happen now is no house price growth for many years to allow salaries catch up with the prices and inflation that will devalue debts.

Oh get real AtW, do you really think the banks will loose out? The interest they get from people who don't run out of money will pay for their liabilities as interest reates shoot up, they will probably do deal with the customers where the term of the mortgage is extended so that Johnny Looser can keep his house will they still rake in the money and they will just hold on to some of the property until it becomes economically viable to sell it. (They can always grab back the property and do some deal with a council to rent it out to chav scum, etc.

The only people that don't really loose out in a recession are the banks, they know how to make money and are extremely good at it. Any bank having sever problems is staffed by muppets who shouldn't be in banking in the first place.

[Andyw]

Any bank having sever problems is staffed by muppets who shouldn't be in banking in the first place.

Nick Leeson ?

[Ardesco]

You mean the guy that broke bank protocol, wasn't stopped by management (who were muppets) and bankrupted the bank...

As I said before, Any bank having severe problems is staffed by muppets who shouldn't be in banking in the first place.