Stubborn mortgage lenders hold property market hostage for profit

by Property118.com News Team

11:08 AM, 13th December 2010
About 10 years ago

Stubborn mortgage lenders hold property market hostage for profit

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Stubborn mortgage lenders hold property market hostage for profit

Estate agents have slammed stubborn and self-serving mortgage lenders for holding homeowners and homebuyers hostage for the sake of their own profits.

Peter Bolton King, head of the 10,000-strong National Association of Estate Agents accused banks and building societies of manipulating the market by failing to grant more loans.

He added that property professionals expect interest rates to rise next year and that the Bank of England’s monthly rate announcements will have a major impact on the housing market.

Any recovery in the market, he warned, is strongly dependent on the major lenders making mortgage finance more available.

“The housing market remains in a state of fragile recovery as the year ends. Frankly, however, this recovery is threatened by the stubborn refusal of major lenders to loosen their self-serving restrictions on mortgage lending,” said Mr Bolton King.

House prices unlikely to fall much in 2011

“A historically low rate of interest has benefited those people who already have a mortgage, but it is likely that over the next 12 months it will rise. That will place more pressure on existing borrowers but also remove mortgages from the reach of even those house buyers with large deposits. “

Mr Bolton King expects the housing market to face a tough year, but is confident that house prices will not plunge.

Estate agents do predict the rise of ‘postcode power’ – as premium areas emerge from the slump at a faster rate than others. 

Estate agents also warn that a backlog of pent-up demand for property in the short term could potentially distort prices with a rush of demand when mortgage borrowing becomes easier.

Mr Bolton King added: “What we will see is the emergence of ‘postcode power’ – as demand for property in some areas fuels a healthy market while other, less desirable areas, are in danger of being left behind.”


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Comments

21:21 PM, 13th December 2010
About 10 years ago

Some text deleted as it links to a URL which is not familiar to us.
After the credit crunch I could not understand why mortgage interest rates did not fall in line with the BOE base rate to stimulate the property market on which the whole economy is based. The official line was that the banks 'needed to recapitalize'. While researching this topic I made some startling discoveries; The Bank of England, The Federal Reserve in America and all central banks in the developed world are privately owned by a small group of families. This group has consciously created every boom and recession that has occured over the past two hundred years by increasing and decreasing the amount of money in circulation to further consolidate their control over the masses. They also own and control all the mainstream media so most people are being manipulated and influenced without realising what is going on.
----------------DELETED TEXT------------ all money is created as debt and interest is paid on money that is created out of thin air! The 'fractional reserve system' is an amazing concept on which all economic systems are based but which is NEVER disclosed through the mainstream media.
I've been a sleeping sheep for a very long time but now I've woken up and hope you will join me!

21:12 PM, 14th December 2010
About 10 years ago

The video series mentioned: 'The Corrupt Banking System' is available on Youtube.

23:06 PM, 14th December 2010
About 10 years ago

Thank you David, this is now approved.

10:00 AM, 16th December 2010
About 10 years ago

Hi my name is Chris, I am supprised The Money Centre is allowing this type talk on its site, as with any business they are about making money, I think if people start to wake up they would not be buying property. I think like myself, now it is all about getting out of debt in preparation for the looming economic collapse. I woke up about a year ago thanks to David Ike and Peter Joseph. I am gobsmacked at smug attitude of 98% of population who get all there information from the BBC and refuse to listen to anything else. Everyone I have spoken to goes blank when you mention fractional reserve banking or currency by fiat or the ruling elite or the federal reserve or the new world order etc etc etc. Thanks to false bubble and engineered recession created by the system myself and lots of by to let investors are headed towards or already near negative equity. I have no chance of paying my mortgages off, what I would like to know is if the economy collapses, do the people with mortgages with mortgages loose everything. ?

Chris

10:06 AM, 16th December 2010
About 10 years ago

Hi Chris

I beleive in balanced reporting, hence I'm publishing your views.

Property Investors make their own choices based on their knowledge. I am one of them.

I wish you well with your strategy.

Regards

Mark Alexander

13:43 PM, 16th December 2010
About 10 years ago

I'm a buy-to-let investor with a portfolio of 4 properties that give me 900 pcm cashflow, that's after all cost have been deducted. With properties this low in price, I'm encouraged into taking even more debt because the rental values far outweighs the costs. However, my portfolio mortgage is 321K and the current valuation is 450K giving me equity of 129K. If the economy collapses, the equity would reduce even further. But I won't sell. If rental demand collapses, then I stand to lose everything. But I don't think that'll happen because people will always need a roof over their heads.

I hedge my bets by creating other streams of income. I've started a part-time job going door-to-door selling utilities in addition to my full-time job. I will create more streams of income in the near future. My main objective is to pay off the mortgage on my main residence which has 12 years to run. This is that, if the economy does collapse, at least I'll still have my main residence.


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