New mortgage rules on the way

chris9991 · 19-12-2011, 11:12

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, 11:31

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, 11:54

Quote:

Originally Posted by chris9991

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, 13:09

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, 13:13

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, 13:15

Quote:

Originally Posted by Ignitionnet

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, 16:25

Quote:

Originally Posted by denphone

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, 16:30

Quote:

Originally Posted by Ignitionnet

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

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.