Just put house up for sale...

[Stebbil 10]

Does everyone believe we have seen the end of 100% mortgages, or do you think they will return again one day? First time buyers cannot raise the deposit required regardless of the falling house prices simply due to the recession, however the failing of big banks has caused the rest to tighten their belts on how much and to whom they will lend. Even as someone trying to sell their propoerty I can only see this entire crisis getting worse *smacks head against wall*

[SupraSteve 10]

There are still 2 100% mortgages available now. However AIUI they might as well not exist as the criteria are understandably, insanely strict and the fees unaffordable to teh sort of person who would need a 100% mortgage. The same goes for the couple of dozen 95% mortgages still available. The other 3,500ish mortgages are only for people will a big deposit to put forward or a sizeable chunk of equity in their house (which is less and less people each month, of couse).

 

I blieve that 100% mortgages will come back, but not 'till house prices are on their way back up (so... no sooner than... 6~7 years from now?) - but importantly they will most certainly be pegged at a sensible laon Vs income ratio, as will all mortgages in future, I believe.

 

Banks - the ones that survive the next 3~4 years I mean - won't back a losing horse in a hurry again.

 

 

You're right, the crisis will get worse. We haven't seen the brunt of 'the downturn' yet.

[Stebbil 10]

Oh Bugger!

[Tricky 10]

Completely agree.

 

What is worrying me most right now is the Government (and to a similar extect, the shadow Government) approach of borrowing yet more money and attempting to spending our way out of a recession. This will only end in more tears and a more damage in the long run. How anyone can think borrownig money to get us out of a problem caused by borrowing too much money(!!) is a good plan, I simply cannot fathom.

 

There are two interrelated reasons in my view.

 

1. They view this problem as a liquidity crisis, when it's not, it's an insolvency crisis. Banks and other businesses kept afloat by a paper chain of loans and insurance against those loans which are worth sweet F.A.

 

2. The politicians would have no policies to offer if they don't believe it is a liquidity crisis, so in order to be seen to be taking responsible action they've got to declare the problem is something it isn't. The alternative is to say "Sorry we're all screwed, best thing is to sit tight and hope for the best." What politician is going to come out with that policy?

[SupraSteve 10]

They could believe it's a liquidity crisis and act in an unpopular way but in the UK's genuine best interests and instead of creating yet more problems for -pah who am I trying to kid, [national] politics is largely about staying in power no matter what the cost. Try to look good now and maybe we'll get another 4 years.

 

Why can't Joe Public see what's going on.

 

Actually, reading the comments at the bottom of this story, at least a handful of people share my views.

[Tricky 10]

They could believe it's a liquidity crisis and act in an unpopular way but in the UK's genuine best interests and instead of creating yet more problems for -pah who am I trying to kid, [national] politics is largely about staying in power no matter what the cost. Try to look good now and maybe we'll get another 4 years.

 

Why can't Joe Public see what's going on.

 

Actually, reading the comments at the bottom of this story, at least a handful of people share my views.

 

I've ignored the Independent's economic commentary for a while now. Hopelessly optimistic and much too in awe of HSBCs economics team. The comments seem to be based on reality a bit more.

 

Oddly enough, and I can't believe I'm saying this, but some of the shrewdest views come from the Guardian economics articles readers' comments.

 

It's as if the people who are not involved but make the effort to find out what's going on, can see it quite clearly - a case of the emperor's new clothes - but those that are involved refuse to see it and everyone else puts their head in the sand and hopes it's going to go away.

[SupraSteve 10]

...The comments seem to be based on reality a bit more.... some of the shrewdest views come from the Guardian economics articles readers' comments.

I've certainly observed a gradual but undeniable change in the flavour and depth of comments the general public are leaving at the bottom of online financial articles such as these. As you say, the articles themselves aren't usually anything much to take note of, but the comments I've used as a barometer/indicator for a while now.

 

The biggest changes I've noticed in the last few months are that all the bulls have gone (e.g. there won't be a recession, it'll all be alright, the banks aren't in that much trouble, it'll be over in 6/12 months...) and that the majority of people who comment nowadays seem very astute towards what's going on, and are usually much more able and elequent in portraying those views than the likes of me.

 

It's as if the people who are not involved but make the effort to find out what's going on, can see it quite clearly - a case of the emperor's new clothes - but those that are involved refuse to see it and everyone else puts their head in the sand and hopes it's going to go away.

You've absolutely hit the nail on the head there! (Unfortunately. )

[sham71 10]

but those that are involved refuse to see it and everyone else puts their head in the sand and hopes it's going to go away.

 

where is Phylis, by the way?

[Cyclone 10]

There are two interrelated reasons in my view.

 

1. They view this problem as a liquidity crisis, when it's not, it's an insolvency crisis. Banks and other businesses kept afloat by a paper chain of loans and insurance against those loans which are worth sweet F.A.

 

2. The politicians would have no policies to offer if they don't believe it is a liquidity crisis, so in order to be seen to be taking responsible action they've got to declare the problem is something it isn't. The alternative is to say "Sorry we're all screwed, best thing is to sit tight and hope for the best." What politician is going to come out with that policy?

 

It started as a liquidity problem though, as they stopped lending to each other because they weren't sure how stable the other banks were.

And the trigger for the whole thing was lax lending criteria, more (I believe) in the US than here, and the fact that many US mortgages are no recourse (ie the home 'owner' can hand the keys back and walk away).

[espadrille 10]

I've ignored the Independent's economic commentary for a while now. Hopelessly optimistic and much too in awe of HSBCs economics team. The comments seem to be based on reality a bit more.

 

Oddly enough, and I can't believe I'm saying this, but some of the shrewdest views come from the Guardian economics articles readers' comments.

 

It's as if the people who are not involved but make the effort to find out what's going on, can see it quite clearly - a case of the emperor's new clothes - but those that are involved refuse to see it and everyone else puts their head in the sand and hopes it's going to go away.

 

Or it may be that they actually hold a different view to you??

[espadrille 10]

mine could drop 70% still be worth more than i paid for it

 

 

be good for young and first time byers so i think its a good thing (sorry to those that will loose thou)

 

 

Exactly....Brilliant and well said.lets get it all in to perspective .

[Stebbil 10]

I dont want to sound all "feel sorry for me", but the people who have been stuffed the most by this situation are people like myself. We bought our property 3 years ago when prices were high, interests were high and stamp duty existed for properties of any price. We therfore get stuffed in three different directions in that we paid alot in the first place, our mortgage payments are high (fixed was the way forward for sure then) and now our properties are not worth the amount we paid for.

While I do feel for investors (they will have lost money - probably considerable) and people who bought their property a long time ago - it is the first time buyers who bought between 2003-2007 that have been hit the hardest. I just hope that things do improve, as i am sure there are plenty of people out there in a similar situation to myself. Remember, not all the people who own city centre apartments have another four in various complexes.

 

Sorry, am in a bad mood :mad: