Lots of new houses coming to market.
Discussion
okgo said:
paulrockliffe said:
Not sure the issue will be so much everyone that took a mortgage holiday, but I'd be surprised if being able to clearly afford the mortgage yet taking a mortgage holiday does not generate a red flag. Even if it's simply an interpretation that the financial information provided does not support the fact that a mortgage holiday was taken. Alternative interpretation would be around attitude to paying the mortgage being sub-optimal; had the money, chose not to pay. I'd put those two ahead of the more simplistic; didn't have a pot to piss in, so is high risk of being in that position again.
All data that they have no idea about because they never asked?They don't know if someone just fancied 3 months off or lost their job.
It's absolute gold for them given the main purpose of their risk assessment is to establish whether you will prioritise paying them if things are difficult, so I'd be surprised if they don't look at it one way or another.
paulrockliffe said:
Every time I've taken out a mortgage I've supplied bank statements going back several years and been asked my employment history going back as far. They can see perfectly well if someone stopped paying their mortgage and if it coincided with unemployment. They can also see if you had loads of savings at the same time. They can also start asking the question directly in future.
It's absolute gold for them given the main purpose of their risk assessment is to establish whether you will prioritise paying them if things are difficult, so I'd be surprised if they don't look at it one way or another.
People said that they would take away low deposit mortgages for the foreseeable. They're back already.It's absolute gold for them given the main purpose of their risk assessment is to establish whether you will prioritise paying them if things are difficult, so I'd be surprised if they don't look at it one way or another.
If this was a small subset of the population I'd agree with you, its not, its huge, and its going to get even bigger, and soon.
22s said:
I run an estate agency in Surrey.
Demand (as measured via proxy of portal searches, so take with a pinch of salt) up 59% vs 12 month pre-pandemic average.
Supply is currently up 21% vs the 12 month pre-pandemic average.
Sales agreed up 56% vs the 12 month pre-pandemic average.
It's busy!
I think the party is going to last for a couple of months longer, come to an abrupt halt as furlough roll-off bites, then pick back up in spring next year. Hold on to your hats for the rollercoaster!
Interesting to see some hard numbers around it. Do you have any data you'd be willing to share on asking prices vs accepted offers? Demand (as measured via proxy of portal searches, so take with a pinch of salt) up 59% vs 12 month pre-pandemic average.
Supply is currently up 21% vs the 12 month pre-pandemic average.
Sales agreed up 56% vs the 12 month pre-pandemic average.
It's busy!
I think the party is going to last for a couple of months longer, come to an abrupt halt as furlough roll-off bites, then pick back up in spring next year. Hold on to your hats for the rollercoaster!
whatleytom said:
Interesting to see some hard numbers around it. Do you have any data you'd be willing to share on asking prices vs accepted offers?
My brother is an estate ag ent in Warwickshire, and business is much like that, just not quite as good. Prices are firm, compared to pre lockdown.Rental particularly strong.
Tlandcruiser said:
Doofus said:
I was talking to somebody just yesterday about this. How many of these extensions and alterations, we wondered, have been made possible by the homeowners not paying the mortgage for the last 4 months.
I doubt many extensions being funded from four months of a mortgage holiday. Same area as the OP and agree it’s probably about 25% new homes on Rightmove atm. All these new Lego towns have come at once (around here) and I think it’s going to be a race to get them sold... hence the very recent and obvious massive advertising splurge on RM.
I think there will be deals galore come 4th Quarter
I think there will be deals galore come 4th Quarter
For those that said mortgage holidays would bite, here it comes!
https://www.bbc.co.uk/news/business-53222765
https://www.bbc.co.uk/news/business-53222765
Celtic Dragon said:
For those that said mortgage holidays would bite, here it comes!
https://www.bbc.co.uk/news/business-53222765
Was always going to be this way, I'm just surprised anyone is surprisedhttps://www.bbc.co.uk/news/business-53222765
But that article (which is very poor) is about people wanting more lines of credit whilst on a mortgage holiday. Understandable they wouldn’t get that.
I think the subject of this discussion is longer term impact in getting credit, which all banks quote in that very article have said either they’ll take at face value or it won’t affect the applicant.
The BBC is trying to stick two different things together IMO to create a scary story for everyone and is quoting a mortgage broker as if they are an authority on underwriting decisions.
I think the subject of this discussion is longer term impact in getting credit, which all banks quote in that very article have said either they’ll take at face value or it won’t affect the applicant.
The BBC is trying to stick two different things together IMO to create a scary story for everyone and is quoting a mortgage broker as if they are an authority on underwriting decisions.
panholio said:
But that article (which is very poor)
Isn't it just. The chap Pollen was about to launch a business, for which he didn't have enough money or investors.He didn't launch and didn't pay his mortgage as a 'security measure'. This implies he had the money but didn't want to use it to fulfil his existing financial commitments.
Now he's complaining because he can't get funding for an extension.
Welcome to the real World!
A couple of thoughts on this.
Firstly, I can entirely understand why people may have taken payment holidays that so far have been unnecessary.
No one knew how things were going to pan out. No one knew what government support there would be. Everyone was assured by the government that taking the holiday would not penalise them - or at least their credit file, which most people equate with their ability to borrow.
Secondly, I don't think it pays to be quite as smug as people on here are being.
If payment holidays have a big impact upon lending, it may paralyse the housing market, and that is in no one's interest. There will be enough challenges without that hindrance.
Our businesses are exposed to the housing market and I am sufficiently concerned that I dropped Rishi a line a couple of weeks ago.
Firstly, I can entirely understand why people may have taken payment holidays that so far have been unnecessary.
No one knew how things were going to pan out. No one knew what government support there would be. Everyone was assured by the government that taking the holiday would not penalise them - or at least their credit file, which most people equate with their ability to borrow.
Secondly, I don't think it pays to be quite as smug as people on here are being.
If payment holidays have a big impact upon lending, it may paralyse the housing market, and that is in no one's interest. There will be enough challenges without that hindrance.
Our businesses are exposed to the housing market and I am sufficiently concerned that I dropped Rishi a line a couple of weeks ago.
skintemma said:
Lots coming onto the market here in Cambs/Northants and it seems there's a bit of a buying frenzy.
Same experience here. Currently looking in Cambridge and surrounding villages.Property 1 - mine was one of 4 offers within 7 days of the property going on the market, between 5pc under asking and 5pc over asking.
Property 2 - viewing cancelled because the vendor had 2 offers 'substantially over asking', within 4 days of the property going on the market.
Certain stuff is selling very well and always will. I have a quick ganders on Rightmove daily and what I did notice before CV was a lot more (average) houses were being re-advertised / refreshed (to get them to the top of the page - I search by "Newest added") as "Reduced" - so there was a definite slowdown happening in the housing market even before CV (yes I know it was Winter, but it was still obvious).
This year our area (South Nottingham) is dominated with NEW builds, so it'll be interesting to see what happens after this pent up demand phase. Going forward I don't know where all these extra buyers are going to come from..
Also noticed a few 'nice' houses in our area which were marked as SOLD just before CV becoming available again. And other houses that were clearly overpriced and been advertised for over a year have sold within the past few weeks. I've come to my own conclusion that just like the car market I don't think it's possible to make proper sense of the housing market atm.
This year our area (South Nottingham) is dominated with NEW builds, so it'll be interesting to see what happens after this pent up demand phase. Going forward I don't know where all these extra buyers are going to come from..
Also noticed a few 'nice' houses in our area which were marked as SOLD just before CV becoming available again. And other houses that were clearly overpriced and been advertised for over a year have sold within the past few weeks. I've come to my own conclusion that just like the car market I don't think it's possible to make proper sense of the housing market atm.
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