100 mortgage lenders uk

100 mortgage lenders uk
Nobody, not even Alan Greenspan and Gordon Brown, could accurately predict what will happen to the mortgage market, and consequently in the UK market in the future. There are simply too many and deep and turbulent events of us to view it correct. But many people are in agreement about which events are expected. In this article I would like you about the events that are expected in the know. I have them in a rough order:

Banks announced huge losses - in recent years, banks have stopped indemnifying themselves against the withdrawal of properties in negative equity. They believe, by the steady rise in property prices from 2000 to 2007. But the recent slump has found that many properties are now at a lower price than the debt. I've heard the actual number of new build flats in Northern towns sale on £ 100,000 less than the outstanding debt. Now imagine you are the MD of the Alliance and Leicester, and you have just announced profits of £ 2million. You only need the above scenario pan from 20-times for all of your gains are wiped out! Scary times! The latest results from HSBC and Lloyds TSB show that even the big high street banks are not tight.

Skeletons from the closet - there are still a lot of headlines around the banks to report. I think these headlines go far beyond the notion of irresponsible lending.

Tightening of the criteria - the rules for mortgage loans received more stringent than real estate prices fall. Why should a bank give you a 95% mortgage, if the trends show, you will be in negative equity within a year? I expect a maximum LTV's, when 90% or less.

Real estate prices drop further - as the criteria draw a negative feedback loop will be created. We can not mortgage property prices fall. Because asking prices drop in the bank, its rules more difficult. Catch-22!

Smaller banks from the sale of repossessions - now in the middle of the credit crisis, the rental market is in a mini-boom. The First Time Buyers, which usually have their first step on the ladder are now renting - and waits for the housing market to "bottom out". " The smaller banks will soon be automatically sell the properties they repossess. They are simply out of debt and rent the property until the market pulls back. The bank will employ people to assess whether a property can sell, or whether they are for rent. I am sure that some (ex-) lenders are already doing this.

Stabilize real estate prices - for example the provision of repossessions is slowed, it will only be the desperate sellers, prices are down. The vast majority of the market that are not particularly motivated to sell, it will just sit.

Slightly relaxed lending criteria - such as real estate prices stabilize, the banks making their current restrictions seriously, but I can not see, they go to the extremes seen before the credit crunch. I think that's even a maximum LTV of 90 to 95%.

Real estate prices slowly begin to increase again - after the basic driver on the market as the influx of immigrants from Eastern Europe, the aging of the population, etc. causes the market to rise again. We can also observe that rolls like a spring back on the market an even higher position than before.

It will be interesting to see how many of these predictions come true. Am I the Northern Rock Nostradamus? Only time will it be that all this is at least 18 months to conclude. There is a lot of sleepless nights, before we can welcome back to the Credit Crunch the 2007th

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