Frozen U.K. Home Market Leaves Buyers Wondering Where to Go

[DealorNoDeal]

My first mortgage was interest only with an endowment policy. Those dropped out of favour pretty sharpish.

It's 17 years since I took out a mortgage. At the time, there were interest-only mortgages available where you didn't have to provide any means of paying off the capital (not even a crappy endowment). It was also at a time when "self-cert" was all the rage. Obviously, none of this ended well.

Clearly, the lending is a bit more responsible these days, although I shudder when I see on the likes of Location, Location how much people are borrowing.

[Paralytic]

Clearly, the lending is a bit more responsible these days, although I shudder when I see on the likes of Location, Location how much people are borrowing.

The housing market is looking so bad, even the TV shows are being downsized!!!

[ladymuck]

It's 17 years since I took out a mortgage. At the time, there were interest-only mortgages available where you didn't have to provide any means of paying off the capital (not even a crappy endowment). It was also at a time when "self-cert" was all the rage. Obviously, none of this ended well.

Clearly, the lending is a bit more responsible these days, although I shudder when I see on the likes of Location, Location how much people are borrowing.

That's what I had - a self cert interest only mortgage. The advisor got me to take out the endowment (probably because he got a nice commission) although it wasn't a requirement at the time.

I got rid of it once the initial term was over and moved onto more normal mortgages.

The best one I had, on my last place before I sold up and moved to the big smoke, was with Barclays / Woolwich and was an offset base rate tracker. I see they're offering those again now.

[NotAllThere]

WTF was he doing splitting the chain into 2 bits.

I've owned four houses. On each occasion I moved into rented after sale. I've only been part of the chain, when I've been at the bottom end. It gives a bit of leverage, and a chance to get to know the new area.

Estate agents love chains because they get all their commission in one go. The shorter the chain, the better for the people buying/selling.

[rootsnall]

With nowhere to live until then....

Not sure where he lives but there was a story yesterday of Airbnb pads flooding onto the rental market. I don't think finding a rental is a problem. Obviously a bit of a ballache short term but sitting pretty medium term.

[fullyautomatix]

That's what I had - a self cert interest only mortgage. The advisor got me to take out the endowment (probably because he got a nice commission) although it wasn't a requirement at the time.

I got rid of it once the initial term was over and moved onto more normal mortgages.

The best one I had, on my last place before I sold up and moved to the big smoke, was with Barclays / Woolwich and was an offset base rate tracker. I see they're offering those again now.

Thank god all that self cert mortgage nonsense ended in 2008. It took a proper global credit crunch to enable that. Bankers will dream up any nonsense to keep pumping up the house prices.

[scooterscot]

Thank god all that self cert mortgage nonsense ended in 2008. It took a proper global credit crunch to enable that. Bankers will dream up any nonsense to keep pumping up the house prices.

you blame the bankers.... but:

[scooterscot]

PS: You think this isn't happening right now!!

Oh to be a fly on the wall right now of Deutsche - everyone at the minute is trying to unload their next to worthless MBS products.