Lack of mortgage availability affecting sales

**fckvwls** · 11 March 2009, 09:45

Originally posted by DimPrawn View Post

Everyone is going around saying "property sales are low due to lack of mortgage availability".

e.g. http://news.bbc.co.uk/1/hi/business/7936573.stm

Is this really the case, or is it that either people are waiting for house prices to become affordable or they have lost their jobs or are about to lose their jobs?

If the banks start lending again is that all it will take for house prices to double again?

I thought you were a cash buyer?

Stop this fannying about and analysis paralysis and just buy that flat in Surrey you've been banging on about.

**DimPrawn** · 11 March 2009, 09:54

I am a cash buyer.

But I don't think mortgage availability is what is stopping the market.

I'm not going to buy the 1st house I see. It's not like prices are going to rise again in the next five years.

**administrator** · 11 March 2009, 10:06

Has reached stale mate now I think. The public at large know that prices are falling and unless we start seeing month on month increases then I expect most looking to buy will sit it out.

RBS makes £1.7bn mortgage promise
http://news.bbc.co.uk/1/hi/scotland/7936520.stm
Well that's less than 12,000 £150k mortgages so not going to make a huge difference is it?

I hope that most will also consider the possibility of interest rate increases in the future when detemining mortgage affordability...

**d000hg** · 11 March 2009, 10:08

I've talked to 2 mortgage advisors recently and both say that lenders are much more cautious... as well as the fact you now need a 25% deposit to get a decent rate, they will kick up much more of a fuss if you have any bad credit history... you might have to take a sub-prime mortgage at 8%+ even if you can raise 25-40% deposit. And I think many people who previously might buy a house might fall in that category... for instance I know a married couple who are both teachers, who had to take a self-certified mortgage 4 years ago as both were on rolling termly contracts.

**b0redom** · 11 March 2009, 12:18

I looked a little while ago at a mortgage with a 25% deposit and a perfect credit history. I know I'm well within my borrowing limits, and I still got 0 hits on Charcol.co.uk. Similar situation with my B2L mortgage.... No one wants to lend.

**Cyberman** · 11 March 2009, 12:22

Originally posted by DimPrawn View Post

I am a cash buyer.

But I don't think mortgage availability is what is stopping the market.

I'm not going to buy the 1st house I see. It's not like prices are going to rise again in the next five years.

What planet are you on ? This has been the problem for 18 months. Have you heard of the 'credit crunch', 'liquidity crisis' or QE ?

**minestrone** · 11 March 2009, 12:27

Certainly has a very big impact, we are(would be) looking to purchase with a 60% mortgage, our IFA has told us that it will take about 4-6 weeks to get one. Used to be a few days.

Just puts the brakes on a fast moving market.

**DimPrawn** · 11 March 2009, 12:28

Originally posted by Cyberman View Post

What planet are you on ? This has been the problem for 18 months. Have you heard of the 'credit crunch', 'liquidity crisis' or QE ?

No, what are these things? Are they TV programmes?

**Cyberman** · 11 March 2009, 12:58

Originally posted by minestrone View Post

Certainly has a very big impact, we are(would be) looking to purchase with a 60% mortgage, our IFA has told us that it will take about 4-6 weeks to get one. Used to be a few days.

Just puts the brakes on a fast moving market.

HIPS also put the brakes on the market unfortunately, and will continue to until June 2010.

Lack of mortgage availability affecting sales