Are lenders really changing their position and lending more or are they just giving the appearance of lending to prevent government intervention in lending?
The Bank Of England released figures yesterday that show mortgage rates have increased despite the reintroduction of riskier mortgage products and all this in the light of 0.5% base rate. It makes you wonder what the game plan is for the lenders who are not passing on the benefits of such low rates and it also makes you wonder about how toxic the banks balance sheets really are.
But what must be remembered is that in a recession no one is going to lend without factoring in risk, would you? If a friend or family member asked you for a loan when their job is on the line you would instantly know that your chances of getting that money back anytime soon or ever are greatly diminished by their personal circumstance and the same goes for lenders. A clear signal is being sent out by lenders and that is they have no confidence in either the housing market or the economy, and until they lower the deposit on affordable lending rates there is really no hope for the housing market.
In fact many lenders have been actively trying to devalue the valuations of estate agents so that the sellers will not lend to the buyer and that leaves only one conclusion……Banks see no sustained and long term recovery in the housing market. There is one sign to look out for when it comes to a housing recovery and that is when a deposit on an average house is affordable to the man on an average wage with an affordable interest rate on the loan then we will see the recovery.
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Tags: Bank Of England, economics, Fixed Rate Mortgages, house price crash, house price news, housepricecrash, housing market, Lending News, Mortgages, News, Politics, Property Market
As house prices in the UK go up, so the UK economy is being destroyed. Another boom and deeper bust will destroy the UK economy for a decade, and break investors confidence in the UK, and all that is left will be another version of Iceland with very little industrial production.
I think we should start a “little list” now of the people responsible for this destruction so that they can be pursued, harangued and vilified for the rest of their lives, where ever they go to hide with their ill-gotten gains….