A new credit crunch starting

[BradNaylor]

Yeah, it was much better when fewer people could buy things that need substantial amounts of capital.

The point is though Jake, that profligate mortgage lending by banks has caused house prices to soar to ridiculous levels as people with ever larger amounts of borrowed money at their disposal chase a finite number of homes.

A return to the sensible lending practices of old will simply mean that houses trade at a much lower level, constrained by the availability of funds. They won't be any less affordable for the average person - in fact they will be more affordable.

If an average house is £200k then saving up a 15% deposit is a daunting prospect.

At £120k it is less so.

Cheers
Dan

 

[Digit]

HIPs are apparently having a negative effect locally according to reports as well.
A house in the village has just been sold after 52 months, my own house was on the market for a similar period, the only new house to be constructed in 18 yrs took 17 months to sell.
With one new pack required at regular intervals this must logically increase costs to someone.

Roy.

 

[devonwoody]

I watch "house in the country" most afternoons, and I am gobsmacked at some of the prices quoted by estate agents on house valuations.
Some of the viewing prices I thought were overvalued, the buyers needed their heads examined, others knew how to walk away.

 

[Losos]

One way or another this crazy banking and loan system will have to change.

Either over the table (By govrrnment legislation) or under the table (By the various means that exist)

I hope and pray that it will be illegal to offer mortgages of 100% or more, it just seems so obvious that people are not going to save if they haven't got any financial commitment in their house.

 

[devonwoody]

There was a fellow on TV the other night who said he had got £60,000 of credit card debts(besides repocession problems) and he just used to get another CC to pay for the next purchase or make minimum payments on other cards.

Now he says he is engaged in advising people on how to manage detbt.
(I suppose he does know how to get credit but not on repayments. )