How to get on the housing ladder: Mortgages on offer for six times salary

[milanbenes]

http://www.telegraph.co.uk/news/main...1/nhomes11.xml

'Lenders are offering mortgages equal to six times salary to first-time buyers desperate to get a foot on the property ladder as house prices soar out of reach.',



well this is only good for property owners, the money available the more buyers in the market

one wonders if the banks helping the buyers or propping up the market ?

Milan.

[Sockpuppet]

Proping up the market. Boomed then doomed etc.

[BOBJ]

My brother's girlfriend just got a mortgage with a friend of hers. I suppose its good to get on the property ladder, but what a pain it'll be when one of them wants to move, they fall out etc. A taxi driver in Belfast was telling me a similar thing, he said it was the only way the averagely-paid locals can get a house.

[Hart-floot]

http://www.telegraph.co.uk/news/main...1/nhomes11.xml

'Lenders are offering mortgages equal to six times salary to first-time buyers desperate to get a foot on the property ladder as house prices soar out of reach.',



well this is only good for property owners, the money available the more buyers in the market

one wonders if the banks helping the buyers or propping up the market ?

Milan.

No, this story from today's Telegraph is more apt....

http://www.telegraph.co.uk/money/mai...0/cnbets10.xml

House price fears fuel bets on market
By Philip Aldrick
Last Updated: 12:53am BST 11/04/2007


"Growing numbers of punters are taking bets on the housing market without even buying a property.

Spread betting group Cantor Spreadfair has seen a doubling in the number of gamblers betting on a rise or fall in property prices in the past two months.

Fears have been stoked by recent research from Lombard Street showed that unaffordability is at its worst level since the end of 1992. In addition, Halifax data last week showed that the rate of monthly house price inflation has slowed from 1.9pc in February to 1pc last month.

Unlike normal property investment, spread betting allows people to make money when the market slumps. Simon Smith, the market maker for Cantor Spreadfair, said some people are "going short" to hedge themselves against a drop in the value of their own property.

Mr Smith, 33, an economics graduate of Bradford University and former IT systems analyst, is himself "anticipating a fall in prices in 2008" and is going short on the market..>"

[BrilloPad]

http://www.telegraph.co.uk/news/main...1/nhomes11.xml

'Lenders are offering mortgages equal to six times salary to first-time buyers desperate to get a foot on the property ladder as house prices soar out of reach.',



well this is only good for property owners, the money available the more buyers in the market

one wonders if the banks helping the buyers or propping up the market ?

Milan.

seem to remember a similar thing in late 80s - just before the crash of 88-92.

although there is one final stage left "estate agents say interest rate cuts needed if boom to continue"

[tim123]

Spread betting group Cantor Spreadfair has seen a doubling in the number of gamblers betting on a rise or fall in property prices in the past two months.

Unlike normal property investment, spread betting allows people to make money when the market slumps. Simon Smith, the market maker for Cantor Spreadfair, said some people are "going short" to hedge themselves against a drop in the value of their own property.

AIUI the problem with spread betting is that the 'options' tend to have an end date which is going to be far too short for a punt on the housing market. To really hedge the value of your house against a fall you need the bet to be open until about 2012 to be sure. I doubt that the betting company would be interested in such a deal as they would have too big a contingent liability with all that open paper.

tim

[tim123]

seem to remember a similar thing in late 80s - just before the crash of 88-92.

although there is one final stage left "estate agents say interest rate cuts needed if boom to continue"

Well the smart money says that the next rate move is up.

But they could be wrong.

tim

[zathras]

http://www.telegraph.co.uk/news/main...1/nhomes11.xml

'Lenders are offering mortgages equal to six times salary to first-time buyers desperate to get a foot on the property ladder as house prices soar out of reach.',



well this is only good for property owners, the money available the more buyers in the market

one wonders if the banks helping the buyers or propping up the market ?

Milan.

Definition of insantity is n't it?

You wait till the interest rates rise some more. Those mortgages are going to look a little too big. Not only that if the market does crash it is these that are going to enter into negative equity. Those of us who have owned property for some time will no doubt ride out such a storm. The highest drop quoted is still lower than the amount I have 'made' on my property in the last decade.