tallim

WHOOPS !

 

David Cameron called an 80% Loan "respectable" ... Did he mean: "reckless" ??

 

The Prime Minister warned that the housing market was “stuck” and would not improve until banks and building societies got back to “respectable” lending. He vowed to get the market moving again.

 

In his strongest comments yet on buyers being denied access to the housing market, Mr Cameron said the reaction to crash which exposed people on unsustainable mortgages had now gone too far.

 

He said: “In a way the pendulum has now swung too far the other way. If you are a single person, you are earning a decent salary, you go to the bank or building society, you are actually quite a good risk, they won’t give you 80 per cent of the value, they won’t give you four times your salary.

 

“So we are working with them to try and say, look of course we don’t want to see the unsustainable boom of the past, but we’ve got to get proper lending, respectable lending going again.”

 

/more alarming nonsense: http://uk.finance.yahoo.com/news/Banks-gon...2hhdmVnb24-?x=0

 

Does he really want to have to bail out the reckless banks another time ?

I had the TV on yesterday afternoon while he was saying it live in a press conference. My assessment is that it's just a nice soundbite for TV rather than anything real. There's a Parliament seat up for election in Oldham on 13th January after the Labour MP's victory was annulled by a court and the results are going to be pored over by the British media as an assessment of the coalition government as a whole.

If they even had that conversation with the banks and building societies it would go;

David Cameron: Why have you upped your lending standards this much?

Bank: Because our old lending standards got us into lots of trouble, do you want to bail us out again or guarantee our loans?

DC: No

Bank: OK, keep the cheap funding going and you can make us the bad guys for 'Not lending enough'

DC: Fair enough, are we still on for lunch next Tuesday?

Shelter had a good press release today;

http://england.shelter.org.uk/news/january...r_home_on_cards

They did a poll in August and 6% of respondents had paid their mortgage or rent with a credit card at least once in the prior 12 months.

I'm moving from South East to North West UK and I've just finished my checks on my new landlord to ensure he's getting a reasonable yield so I'm safe.

Based on the price history I think I'm moving to one of the main crash zones!

April 2003 - Bought new

April 2007 - Bought for 31.5% more than 2003 price

June 2009 - Bought at auction for 20% less than the 2003 new price, which is a whopping 39% less than the 2007 price

Landlord is now getting a gross yield of 6.3%

Auction transaction was not in the freely published land registry data as it was a repo, so I had to pay £4 to buy the latest information online. I assume he was a cash buyer as the registry info states Lender(s): None.

Mirror image property next door is currently advertised for sale on the open market at 19% more than landlord paid at auction.