credit tightening !

**Diver** · 9 July 2008, 10:38

Rubs hands and wanders down to the estate agents for this weeks auction book

**DimPrawn** · 9 July 2008, 10:40

I have 100% deposit to put down on my next house.

**ferret** · 9 July 2008, 10:43

How mental is this?

For example, borrowers can still opt for a term of 40 years but affordability will be calculated as if you were paying it back over 25 years.

With most FTB's not stepping in to the market this means they would be in their 70's before the loan is complete.

Aha:

In addition, Nationwide is changing the maximum age limit by which time the mortgage must be paid off to 75. Prior to this there was no upper age limit as long as borrowers could afford the mortgage payments from their pension income.

No upper age limit! People really have been silly to buy at these levels. I would rather rent for the whole of my life than be a mortgage slave for that long. Can't believe people have been so blind.

The dropping of 100% mortgages has to be done, they are stupid loans too.

70% off current prices would be lush, would be able to afford a wicked place at those levels - no mortgage required

Can't see them going that low though.

**rootsnall** · 9 July 2008, 10:49

That seemed to go down well so here's some more gloom.

http://www.telegraph.co.uk/money/mai...cnbovis209.xml

ps. the builder that sounds like bread are a fund manager mate's tip as the least reckless housebuilder but he clarified by saying don't buy until it's utter carnage elsewhere.

**scooterscot** · 9 July 2008, 10:49

Originally posted by ferret View Post

With most FTB's not stepping in to the market this means they would be in their 70's before the loan is complete.

It is not that unusual for a mortgage loan to be carried over two generations in somewhere like Japan for instance.

**DimPrawn** · 9 July 2008, 11:21

Originally posted by scooterscot View Post

It is not that unusual for a mortgage loan to be carried over two generations in somewhere like Japan for instance.

Was during their boom which went bust big time about 15 yrs ago.

Yes, lets have 500% mortgages that run for a million years. That way we can all afford a house no?

**scooterscot** · 9 July 2008, 12:16

Purrrsonally I think the UK will become like France where the majority of people will choose...ermm... will have to rent rather than own.

For where is it written that the value of house must equal a reasonable multiple of salary?

For someone on the average salary of what is it.. £25K would mean £75K + savings for a home - I really don't think prices will drop that far to meet the requirements of those who need it most. Seriously I don't.

**BlasterBates** · 9 July 2008, 12:21

Originally posted by rootsnall View Post

http://www.telegraph.co.uk/money/mai...ortgage108.xml

Perhaps house prices will fall by 70%

I jokingly suggested 70%, a while back, deliberately to wind up a BTL "fanatic"

....

Sh*t you mean they could actually fall that far

I was about to suggest unemployment might rise to about 4 million as a wind up

, but I'm afraid it might be too close to the truth.

**HairyArsedBloke** · 9 July 2008, 12:28

Originally posted by BlasterBates View Post

I was about to suggest unemployment might rise to about 4 million as a wind up

, but I'm afraid it might be too close to the truth.

an underestimate.

credit tightening !