Cable Forum - New mortgage rules on the way

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chris9991

19-12-2011 12:12

New mortgage rules on the way

http://www.bbc.co.uk/news/business-16215629

Nice to see some new rules coming in on mortgages - this will really sort out the current mess in the housing market

denphone

19-12-2011 12:31

Re: New mortgage rules on the way

While it will make it harder for people to get mortgages as they will need a 20% deposit it will also make sure that some people will not overstretch themselves which in the long run is a good thing although one effect which might happen is house ownership might might decline for a while yet as it has already decline by 3%.

Pierre

19-12-2011 12:54

Re: New mortgage rules on the way

Quote:

Originally Posted by chris9991 (Post 35347770)

http://www.bbc.co.uk/news/business-16215629

Nice to see some new rules coming in on mortgages - this will really sort out the current mess in the housing market

No it wont,

It may help it from happening again if we have another housing boom.

But since the crash, Intrest only mortgages, self certified mortgages etc disappeared anyway.

Ignitionnet

19-12-2011 14:09

Re: New mortgage rules on the way

Something that does get my attention is the following:

Quote:

Under the proposed new rules, interest-only mortgages can still be offered if there is a "credible" plan to repay the loan, which does not involve a borrower assuming he or she can eventually cash in on the rising value of their home.

That may slow buy to let down somewhat.

Nothing will sort the current mess beyond a lot of building and a lot of pain for those who overstretched themselves.

chris9991

19-12-2011 14:13

Re: New mortgage rules on the way

Will these proposals help those with negative equity if they have to move? I'd have thought it might make it difficult

denphone

19-12-2011 14:15

Re: New mortgage rules on the way

Quote:

Originally Posted by Ignitionnet (Post 35347851)

Something that does get my attention is the following:

That may slow buy to let down somewhat.

Nothing will sort the current mess beyond a lot of building and a lot of pain for those who overstretched themselves.

Exactly and both of those will take a considerable amount of time.

Ignitionnet

19-12-2011 17:25

Re: New mortgage rules on the way

Quote:

Originally Posted by denphone (Post 35347856)

Exactly and both of those will take a considerable amount of time.

There's little appetite for either, NIMBYism is most prevalent in areas where there's the biggest housing shortfall, I'm sure it is in no way related to the high house prices, and no-one seems interested in building as they're all sitting on land banks they paid a fortune for hoping prices will rise enough that they can make some money.

As far as people deleveraging goes the banks are very reluctant to default mortgage borrowers as the more they do that the more it shows how weak their balance sheets with all these billions of mortgage 'assets' backing them up actually are.

http://www.moneymarketing.co.uk/fsa-...042617.article
http://www.google.com/hostednews/ukp...1324168207826A

denphone

19-12-2011 17:30

Re: New mortgage rules on the way

Quote:

Originally Posted by Ignitionnet (Post 35348034)

It just tell us how much of a mess we are in and l cannot see any improvement for a long time into the future.

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