Excellent point, im keeping my eyes open you never know,ive heard theres some real bargains in spain at the moment

 

Just make sure its Legal ,otherwise it may dissapear quicker than you can say " Olla " .

 

I must admit ive heard some horror stories one minute sat by the pool the next a goat farmer from the mountains telling you to get of my land

 

Mortgage lending "bounced " back in January by all accounts !!!!

 

Yep, the boom is back.

Rising unemployment.
Rising inflation.
Stagnating wages.

Can only mean house prices going up with the increased disposable income.

The good times are back. I'm off to get a 90% NR mortgage on one a wonderful property that used to be a garage and is a snip at 230k.

 

0.3% rise in January according to Nationwide .... but, with such a small number of transactions it's almost impossible to measure this kind of % with any degree of accuarcy at all!!

There is simply no increasing funds to buy property - hence there will be no increase in property prices. It can be no other way. The sellers just have to admit that prices need to drop 20% to get things moving - until they do, nothing will happen.

 

I think it needs more banks like Northern Rock to start the 90% mortgage lending again and give the first timers a chance .This will get things moving .

 

But that is where the problems started. Banks lending too much to people earning too little.
This went on for so long that is saw house price go through the roof.
Banks loans/mortgages went bad as people couldn't afford to pay them back, banks then went **** up.

But, now interest rates are stupidly low, peope can afford them, even when they lose their jobs. So nobody is in a mad dash panic to sell hence why prices have stagnated.

 

I am surprised Northern Rock have started doing 90% Mortgages again.

This is an interesting article with comments at the bottom of the page.

http://www.thisismoney.co.uk/mortgag...id=58&ito=1723

 

I'm still waiting for the Dutch tulip market to recover, and the East India Company.

 

They are owned by the Government FFS, the same Government with an interest in making house prices inflate to please the voters.

 

The government has a huge stake in most Banks.

 

125% mortgages in 7 years

get in

 

You've got 125% mortgages or you think they're a good idea?

 

Flightman - I think it is inevitable tbh (for the record I don't think it is a good idea)

but people have short memories, and the lure of "market share" will drive the market

niche players will start, in a few years (remember loan defaults are still low - weirdly) to offer more and more "exotic" mortgages, they will become mainstream due to the herd mentatilty (of the city) and peer pressure of "market share" and the fact that when the **** hits the fan - who cares, the Tax payer will bail us out and I have made a million quid

to me inevitable - like night follows day

not a view on right or wrong just how i see it

 

Thanks for clearing that up.

Personally I think it will never happen. 125% mortgages (I think 90% is too much) will only end up inflating the bubble further, and we can't afford another banking crisis. I can't see Govt standing by this time, while everyone gets "free" money and thinks they're rich.

 

we (the Atlantic economies) are hooked on cheap easy money, a bit like crack, and addicts rarely break free

In my heart -- I wish I could agree with you, in my head I know i can't and don't

 

Haha, pardon??

 

I think comment 14 is interesting:

"I had a 95% mortgage back in 1986, but that felt safe because we were in a high inflation/interest rate environment where inflation was typically around 7% and wage increases inline with inflation as was house price increases. This environment effectively reduced the debt by around 7% a year, but people don't have that luxury now.

I wouldn't say a 90% mortgage was a scandal these days, but what is a scandal is people being allowed ot buy a fraction of a property. There was a low income couple on Country File last night who lived in the Cotswolds and they only way they could get on the housing ladder was to get a mortgage on 30% of a new two bedroomed property. They had to pay rent on the other 70% of it. This is the next train wreck waiting to happen."

I wish we wages inline with inflation at the moment.

 

I got my 1st mortgage 24 years ago and 95% mortgages were pretty average and the property market was no way inflated as it is now? So how can 90% mortgages create a further problem??

 

Beacause percentage wise wages havent increased at the same level as house prices.

95% or even 100% mortgage payments are great if the repayments are managable.But if a young couple need 130k to get a starter home or a combined income of 40k+ then thats a bad thing even at 90%...

Back in the late 80's i was just out of apprenticeship and on 10k a year,and a starter home was around 26k in a half decent area...Basically you could just about afford a mortgage on your own when i was young...

Kids have got no chance now,starter homes should really be half the price if all things were equal.

 

Because you had (probably) a 95% mortgage on a property at 3.5x salary.
Nowadays its 90% of 6x or more.

The reason why all these schemes are available, shared ownership etc, is simple.

Property is overpriced and the industry has to come up with these crackpot ideas to get people on the ladder, and into a lifetime of debt.

I'll say it again, why anyone thinks ever ever-increasing house prices is a good idea, is beyond me. It has crippled this country.

 

Halifax report a 0.9% drop in prices for February ..... stagnant, pretty much.

Sellers need to be made to sell - and that's why we need 10% Base rates and 15% Mortgages .... seperate the chaff from the seed.

 

Are rising wages a bad idea then?

 

Please pop along to the thread you're about to create on wage inflation.


No, of course rising wages, within reason aren't a bad idea. However, if you can show me a graph that shows wage inflation has kept pace with house price inflation over the last 15 years, I'd like to see it.

 

Of course wages haven't risen at the same rate of house prices. I never said that. They have still risen though over the 15 year period that you mention. Logic suggests that you can't possibly have wages increases without an increase in property prices.

Logic would also suggest that over this same period, available land to build on has become more rare as the population has risen.

If wages rise at all, house prices have to follow.
It would be interesting to see the avarage wage from 4 years ago and compare it to now.

 

Wages schmages... just because they rise in figures doesn't mean we're all any better off. Your point is interesting though: wages might rise and house prices might follow, but are they both going to keep pace with inflation in general?

 

Yup, your right and 10 years ago when I bought my house I'm in now you still had to have 3.5x as well.

I asked the bank for and extra £5k at the time to buy a different house and they refused me! I then saw friends buy houses for say £10k more than mine a year or two later and they had no problem getting a mortgae and earned less money than me.

 

I agree,when i took out my mortgage about 17 years ago all i could get was 75% and 3x.

 

We are going through a time of wage reductions and people being made redundant,possible interest rate rises and general bills going through the roof.

I get more and more annoyed about how the banks AND the government behaved.

We will have to have a huge correction in house prices.Those 'glory years' of making money on houses is all going to be clawed back.Those that borrowed on this stupid scenario and spent the fictitious gains are going to be in deep deep trouble

We didn't and are finding things super difficult at the moment