Gvmt Caps Bank Landing - too late?
Discussion
Surely the government now forcing banks to only give a maximum of 3x salary for motgages will further affect the values of house prices severly? Aren't they acting way too late on this?
Many people are paying larger mortgages than their 3x limit, and are maintaining their payments (not defaulting). If the government now forces banks to re-assess lending criteria back to levels last seen donkeys years ago (not taking into account bonuses and overtime apyments also) wont this mean further downward house price pressure long term?
Therefore, anyone with a 'large' mortgage (but not defaulting) will see their house values plunge, equity deminish and be locked into unfavourable mortgage deals because they cannot either sell (due to less people being able to afford to buy) or re-mortgage (due to not meeting 3x salary criteria).
This will have a knock on effect on many other sectors too, especially the new car market as people wont be able to borrow by other means if they are in a position where they dont meet overal 'official' debt levels.
Surely the government is adding fuel to the house price crash by further restricting future borrowing?
The sub prime mortgage issue is still very much a USA issue isnt it? I dont see millions of UK mortgage borrrowers defaulting, you know, honest hard working people. Just those that thought they could play the 'property developer/multi property landlord sector.
Are we all going to be punished now for the previous borrowings of others?
Many people are paying larger mortgages than their 3x limit, and are maintaining their payments (not defaulting). If the government now forces banks to re-assess lending criteria back to levels last seen donkeys years ago (not taking into account bonuses and overtime apyments also) wont this mean further downward house price pressure long term?
Therefore, anyone with a 'large' mortgage (but not defaulting) will see their house values plunge, equity deminish and be locked into unfavourable mortgage deals because they cannot either sell (due to less people being able to afford to buy) or re-mortgage (due to not meeting 3x salary criteria).
This will have a knock on effect on many other sectors too, especially the new car market as people wont be able to borrow by other means if they are in a position where they dont meet overal 'official' debt levels.
Surely the government is adding fuel to the house price crash by further restricting future borrowing?
The sub prime mortgage issue is still very much a USA issue isnt it? I dont see millions of UK mortgage borrrowers defaulting, you know, honest hard working people. Just those that thought they could play the 'property developer/multi property landlord sector.
Are we all going to be punished now for the previous borrowings of others?
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