Oh dear: Now banks relax mortgage loan rules

[John Galt]

That's a very cleverly worded article - all very positive but it still basically confirms that, as a country, we are definitely on our uppers

[expat]

As if houses prices aren't high enough already, and as if personal debt isn't high enough already! BBC here.

Brief as it was, this article made this grouping 4 times:

"People who have a poor credit history or are self employed",
"those with poor credit history or the self employed",
"Lending to people who work for themselves or have trouble with credit ratings",
"credit cards issued to the self employed or those with a poor credit history".

Humph!

[thunderlizard]

"The public sector posted a record net cash repayment of £21.1bn during the month"
ah, still behind on the tax credits then?

[BobTheCrate]

Have banks not got any strategic thoughts in their heads?

...it still basically confirms that, as a country, we are definitely on our uppers

We've seen this before. The banks and lenders have got a strategy and I don't think this is in any way an indication of economic improvement. The reverse in fact.

What I suspect is happening here is that lenders have recently discovered two things.

1. They're turning away too much new business as a result of credit checks.

2. Existing customers already up to their eyeballs in debt have started locking their credit cards away.

In other words new business is effectively drying up and they're trying to turn it around.

[sasguru]

We're all doomed ...

[OwlHoot]

We've seen this before. The banks and lenders have got a strategy and I don't think this is in any way an indication of economic improvement. The reverse in fact.

What I suspect is happening here is that lenders have recently discovered two things.

1. They're turning away too much new business as a result of credit checks.

2. Existing customers already up to their eyeballs in debt have started locking their credit cards away.

In other words new business is effectively drying up and they're trying to turn it around.

Because everyone is sitting tight as they don't want to make a loss selling and aren't willing to pay over the odds buying, it's currently very much a seller's market.

Probably the banks have twigged this, so they realize that if overstretched and/or irresponsible borrowers default then the banks can sell the repossessed property without much risk of a loss (for now).

[zeitghost]

There seem to be quite a lot of houses for sale around here at the moment.

Quite a few gone on the market since Xmas.

I agree with sasguru. The sky is falling. We're doomed.

[frugalista]

True, the property crash hasn't really kicked off in earnest yet. But, it could be like a bus, the longer you wait, the more likely it is.

Find out more at

housepricecrash.co.uk

frugalista