credit tightening !

[ASB]

And then there's this form of insanity... the loan to pay off the loan...

http://www.telegraph.co.uk/money/mai...nalloan102.xml

There was a credit company - quite a large nationwide one - which had in it's advertising the slogan "NOW YOU CAN BORROW ENOUGH TO GET COMPLETELY OUT OF DEBT". This seemed a remarkable concept to me.

[HairyArsedBloke]

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.

[BlasterBates]

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.

[scooterscot]

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.

[DimPrawn]

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]

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.

[rootsnall]

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.

[ferret]

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.

[DimPrawn]

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

[Diver]

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

[rootsnall]

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

Perhaps house prices will fall by 70%