UK banks and lenders suspend offering new mortgages amid market turmoil • Hacker News Board

Re: UK banks and lenders suspend offering new mortgages amid market turmoil

#51

Post by nerdawson » Tue, Sep 27, 2022, 10:39 PM UTC

highwaylights wrote: post #50

nerdawson wrote: post #47

Earlier quoted context omitted.

Why are landlords exploitative? Nobody is being forced against their will to rent a property they don’t want. Tenants already get plenty of protections that are only due to be strengthened. Should choice really be limited to owning an expensive asset or accepting whatever the government is capable of providing (council houses aren’t looked upon fondly). What you refer to as exploitation I’d see as freedom of choice.

It’s exploitative because your counterparty does not have the luxury of choice. The people who actively work the system to prevent new construction are the same people collecting rents from tenants left without options because of bans on construction.

NIMBY attitudes aren't confined to landlords. That's quite a common sentiment among homeowners. People working to secure their best interests shouldn't come as a shock.

There are plenty of options for people looking to get on to the housing ladder including government backed schemes that require deposits as low as 5%. If someone is incapable of saving a 5% deposit, are they fiscally responsible enough to own a home?

Re: UK banks and lenders suspend offering new mortgages amid market turmoil

#52

Post by happymellon » Wed, Sep 28, 2022, 5:18 AM UTC

dazc wrote: post #49

happymellon wrote: post #45

Earlier quoted context omitted.

I think you mean the pound, since this is what we are talking about. The current situation in the UK is due to economic policy from the past 10+ years. Suppressing interest rates to nothing, and encouraging borrowing for extended periods is not fiscally responsible. Make hay while the sun shines unfortunately did not happen, so now the clouds are rolling in there is no buffer.

Look at a graph of USD against GBP, Euro and Yen for the past 5 years. I agree with the general sentiment but this isn't a problem that is exclusive to the UK.

Do we have an article talking about some financial institutions suspending new mortgage offers in the Eurozone?

I'm not saying that inflation isn't a problem elsewhere, I'm saying that the issue in this scenario is that the markets are panicking due to general long term financial mismanagement and doubt over the sustainability of current policy from both the Government and the Bank of England.

Re: UK banks and lenders suspend offering new mortgages amid market turmoil

#53

Post by highwaylights » Wed, Sep 28, 2022, 8:13 AM UTC

simonswords82 wrote: post #7

highwaylights wrote: post #5

I imagine it’ll nix all fixed rates for a good lot of years. There’s a lot of people that are going to be really hurt in the UK this winter. Many will lose their homes, even those that are renting (who probably won’t see it coming). It’s all well and good to smugly say “you should have understood what you were signing up for” but that doesn’t help people in this situation or their families. It was already becoming im…

I’m sorry but I just don’t see how “many will lose their homes”. Mortgage companies are ruthless but not in the business of turfing out families that legitimately cannot afford their repayments. Evicting people is risky long winded and generally speaking their last option. Unless you've got some data to back up what you are saying in which case I’ll shut up. Edit: Lots of replies saying "but they're not charities etc…

But.. people won't miss one or two payments.

They'll miss one payment, then never make another payment on those mortgages ever again.

If your fuel bill was £800 per year, and you're keeping your family alive on £20,000 (as many are), then it's now almost £2k. That was before any of this happened.

Your mortgage was maybe £250 a month on a variable rate because that's all you could get - and were terrified houses would go up even more if you didn't take it. Now your mortgage is almost £700 per month, and rising.

At the same time, the value of the £20k you earn is collapsing, so the food bills you were already struggling with are skyrocketing too.

Ask any of the folks on here that are based in middle America how much sympathy the system had for them in 2008.

Having forgiving policy only works if the government has enough money to protect you - the money is crashing already and after Truss & Kwarteng's nonsense last week any further support packages will make it.. Venezuelan.

Re: UK banks and lenders suspend offering new mortgages amid market turmoil

#54

Post by dazc » Wed, Sep 28, 2022, 3:14 PM UTC

happymellon wrote: post #52

dazc wrote: post #49

Earlier quoted context omitted.

Look at a graph of USD against GBP, Euro and Yen for the past 5 years. I agree with the general sentiment but this isn't a problem that is exclusive to the UK.

Do we have an article talking about some financial institutions suspending new mortgage offers in the Eurozone? I'm not saying that inflation isn't a problem elsewhere, I'm saying that the issue in this scenario is that the markets are panicking due to general long term financial mismanagement and doubt over the sustainability of current policy from both the Government and the Bank of England.

Borrowing rates will have to rise, as they have done already in the US, as everyone has been fully aware for sometime.

My confidence in financial institutions ability to see what is clearly in front of them has been severely tested over the past few months.