Reply to: Oh dear: Now banks relax mortgage loan rules

[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

[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.

[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).

[sasguru]

We're all doomed ...

[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.

[thunderlizard]

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

[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!

[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

[BlasterBates]

absolutment

[threaded]

[Fleetwood]

déjà gonflé

[BlasterBates]

taut (?)

tendu

[eternalnomad]

driven mainly by a 50% rise in corporate tax receipts.

The bastards much have received the cheque I sent them

[Phoenix]

It makes the moronic masses feel "rich" so they go and p1$$ money away on exotic holidays, flash cars and laminate floors which in truth are way out of their financial league.

This has helped to keep "Gordons Economic Miracle" ticking along very nicely

Unfortunately for Gaydon, this financial perpetual motion machine is starting to have issues just as he lines himself up for No. 10

What a shame it would be if his very own economic frankenstein was the very thing that prevented "prudent" from ever getting the keys to No. 10

D'ya think he will move into number 10 or just knock through from No 11?

[BoredBloke]

Spawny Get!

Looks like the fat controller has got away with it again for this year at least - paving his way to Number 10 when it all goes to Rat Sh1t for the person who takes over from him.

Record budget surplus lifts Brown

Mr Brown is closing the gap on his budget targets
A strong surge in corporate and income tax receipts helped the government to post a record monthly budget surplus in January, official figures have shown.
The Office for National Statistics (ONS) said public coffers recorded a surplus of £12.6bn during the month.

As a result, Chancellor Gordon Brown has now borrowed £29.8bn in the 10 months to January - £200m down on the same period last year.

The news also put Mr Brown on track to meet his borrowing target of £37bn.

"This is way in excess of market expectations and suggests that the chancellor's finances will end the year in reasonable form and will certainly be a good platform for his budget on March 22," said Investec economist David Page.

The public sector posted a record net cash repayment of £21.1bn during the month - significantly above forecasts, driven mainly by a 50% rise in corporate tax receipts.

Oil boost

According to the ONS, the surge in company taxes was down to a change in the timing of when taxes are picked up from North Sea oil companies, which was set out in last year's budget.

Oil firms have also handed over significantly higher taxes and royalties this year as a result of soaring oil prices.

The Centre for Economics and Business Research (CEBR) said the jump would be welcomed by Mr Brown.

CEBR economist Simon Wallace said: "One must remember that these are only the figures of a single month, but as Gordon Brown prepares for what could be his last Budget he will be sleeping a lot easier.

"There is no longer the same pressure to cut spending or raise taxes."

Peter Spencer, chief economic adviser to the Ernst & Young Item Club, said the chancellor was set to hit his pre-Budget forecasts.

This will be the first time he has hit his fiscal forecast since Budget 2000, he said.

But Mr Spencer said that the chancellor still faced tough times ahead, and noted that the slowdown in retail spending meant VAT receipts have shown little growth.

"The slowdown is now beginning to subdue the growth in employment and earnings, which does not bode well for next years receipts," said Mr Spencer.

"Item has consistently said that the big problem will come not this year but in 2006/07. It is unlikely that another surge in North Sea oil prices will help the Treasury to hit its optimistic forecasts for next year."