Property doom and gloom
The latest property figures have confirmed what we all know, sales are down to pre-1990 levels and desposits are up to an average of £37,000. Mortgage lending is down by 65% on figures for July 2007.
This is not of course great for first time buyers and those on low incomes who are already on the property ladder, usually you would have said that the government would offer support to get more people back buying property and spending money but with the present financial crisis you wont hold your breath! The London Olympic bid will be a huge expense and I am sure there are quite a few world leaders relieved to have that multi billion pound burden to bear in the next few, lean, years.
Another point made by the BBA was that reposssesions in ’sub-prime’ mortgages was up, lenders have raised their rates on these types of mortgages and few companies are now offering them. Government action would be appreciated on this point, lenders offering mortgages which are out of scale with earnings and then removing them when times get hard leaving homeowners with nowhere to go as other lenders have had the same thoughts. Attracting borrowers in with low rates and 100% mortgages and then going back on their pledge when the financial outlook changed!
All figures from the BBA or British Bankers Association.