Oh Darling,

[northwind]

Originally Posted by gettin2dizzy

But it will artificially hold house prices up, well above their worth just postponing the situation and elevating it to higher risk. If they want an influx of first time buyers, you have to give them the chance by allowing a correction of the housing market.

Ah, so this is that well-known phenomenon whereby reducing the availability of mortgages helps first time buyers? The first people to suffer when mortgage lending reduces are the high LTV and high multiplier mortgages, ie, first time buyers.

Originally Posted by northwind

Ah, so this is that well-known phenomenon whereby reducing the availability of mortgages helps first time buyers? The first people to suffer when mortgage lending reduces are the high LTV and high multiplier mortgages, ie, first time buyers.

Just because I don't support this movement, it doesn't mean I support the governments other decisions.

Anyway, if mortgages are readily available but house prices are high; how does that help the LTV?!

[northwind]

I never said it does- but you suggested that the current situation will benefit them, which is nonsense. it actually inconveniences everyone while benefitting no-one. It's harder now for first time buyers than at any time in the last decade... Our lending to new homeowners is currently 7% of what it was a year ago.

Originally Posted by northwind

I never said it does- but you suggested that the current situation will benefit them, which is nonsense. it actually inconveniences everyone while benefitting no-one. It's harder now for first time buyers than at any time in the last decade... Our lending to new homeowners is currently 7% of what it was a year ago.

You can get a half decent mortgage with a 10% deposit and decent credit record. Times aren't as 'tough' as people like to make out. House prices coming down does help first time buyers as the further the drop in house price, the higher the LTV of their deposit.

[northwind]

Originally Posted by gettin2dizzy

Times aren't as 'tough' as people like to make out.

Ah, just go and google it, the numbers speak for themselves. November alone saw first time loans fall by 19%, on a figure already only 43% what it was last year- that's a bigger fall than general mortgage lending, which has also fallen by issue and by volume. We're the UK's biggest mortgage lender and we've slashed first time lending absolutely to the bone.

Originally Posted by northwind

Ah, just go and google it, the numbers speak for themselves. November alone saw first time loans fall by 19%, on a figure already only 43% what it was last year- that's a bigger fall than general mortgage lending, which has also fallen by issue and by volume. We're the UK's biggest mortgage lender and we've slashed first time lending absolutely to the bone.

Yes. But causation and correlation are entirely separate. People are less inclined to buy when prices are dropping, and banks aren't lending as irresponsibly as they were before. It's 'business as usual' so to speak. If you're a good candidate, the loan is there for you.

[northwind]

Ah, so the fall in first time buyers is a sign that things are good for first time buyers. And black is white. You can't argue that first time lending isn't being hammered and have any credibility I'm afraid. Usually I like these threads because you usually have an interesting and informed point of view, here you're just ignoring facts that don't suit you.

Originally Posted by northwind

Ah, so the fall in first time buyers is a sign that things are good for first time buyers. And black is white. You can't argue that first time lending isn't being hammered and have any credibility I'm afraid. Usually I like these threads because you usually have an interesting and informed point of view, here you're just ignoring facts that don't suit you.

Hehe. It's just the beer

But yes; things are good for FTB. The numbers of sales have dropped as they can see that prices will continue to fall until they are obtainable, by which point their deposits will represent a far higher value in relation to their loan. You'll also notice that sales have dropped across all markets, including buy to let - as it's just a risky time to put so much capital at stake.

I can see nothing but benefit in the fact that >100% mortgages aren't being offered.

[northwind]

Yeah, those only made sense in a growing market and under the right circumstances (they're not actually in themselves a bad idea, defaults on 100+% mortgages are lower than most because of the selection measures generally used), right now they're madness. But even 90% is now harder to get, loan ratios are often lower, and rates are much higher (remember if you're comparing rates that you have to take into account base rate- rates are 4% less today than a year ago)

[Biker Biggles]

Originally Posted by northwind

Yeah, those only made sense in a growing market and under the right circumstances (they're not actually in themselves a bad idea, defaults on 100+% mortgages are lower than most because of the selection measures generally used), right now they're madness. But even 90% is now harder to get, loan ratios are often lower, and rates are much higher (remember if you're comparing rates that you have to take into account base rate- rates are 4% less today than a year ago)

Defaults lower?I assume that is historically,and not expected to continue when property values have dropped by 20% with perhaps another 20% to come?Northy---As a business insider I think you may be missing the wider perception slowly but surely dawning on the lay society.We are witnessing a sea change here,and nothing will be the same again especially the home loan market.A bit like feeding dead cows to live ones(remember BSE)what has been seen as sensible to the experts is now seen to be insane behaviour by the rest of us,and I suspect high LTV mortgages will be seen in a similar light.Id like to see them banned by the regulator allbeit rather too late.