| I can fully appreciate and completely understand why | | | | they have had a up to date reality check. For the past |
| some people may possibly be in turmoil by the current | | | | several years, their lending has been surplus of 95% |
| financial situation. In spite of the colossal amount of | | | | with many borrowers being allowed to borrow on a |
| cash poured into the banking system, property | | | | self certification basis. |
| purchasing and development is alluding people, due to | | | | This means that fundamentally they are disinclined to |
| the fact that they cannot borrow money from the | | | | continue their lending business in this high risk fashion to |
| lenders. Even simple purchasing on the high street | | | | high risk clients and herein lays the problem. Because |
| appears to be a thing of the past because credit is | | | | they have such enormous amounts of people whom |
| impossible. | | | | they have lent enormous amount of money too, it is |
| Furthermore, we are seeing unprecedented reductions | | | | now very complex for them to come across clients |
| in the interest rate those of which we have never | | | | able to provide full proof of income and not least with |
| seen before, all in the attempt to persuade lenders to | | | | a low loan to value mortgage. |
| lend and borrowers to borrow. Nevertheless, all these | | | | All this means that while we may currently have the |
| attempts to motivate the consumer to spend their | | | | lowest of interest rates and the banks may have a |
| money has been a non starter and this can only beg | | | | cache of money to lend all of us, can we really dig |
| the question; "why ?" | | | | deep to unearth a lender who is content with lending |
| The answer comes as no huge surprise really. Due to | | | | 90% to 95% or 80% on a self cert basis. In all sincerity |
| the fact that lending establishments are currently | | | | I think absolutely not. |
| unsure of their assets leading them to be very unsure | | | | In conclusion, my personal opinion is that the mortgage |
| of their liabilities has caused them to plunge into | | | | market, if it returns at all, could well take some years |
| somewhat of a crisis. | | | | before we see a any changes. These changes may |
| For the most part this has been caused through their | | | | be in the way we mortgage our properties leaving |
| indecisiveness as to which will be a sound loan and | | | | behind high loan to values and self certification. Indeed, |
| which will not. In other words, they are trying to avoid | | | | the ease with which these mortgages have been |
| liability to their businesses caused through a bad | | | | recently been churned out has resulted in the inflation |
| lending, with the obvious consequence that they are | | | | of the property market over the last few years. It's |
| reluctant to lend for fear of what will happen. | | | | arguably a good reason why many of these |
| It is an easy mistake to think this is the only reason | | | | mortgages should never have been obtained. Our |
| why banks do not want to lend and that they are | | | | future prospects could be about biding our time till |
| clueless as to where they actually stand. However, the | | | | incomes and deposits reach levels compatible with |
| full story is more likely that they have frankly come to | | | | house prices or a more a chilling thought is to simply |
| the conclusion they cannot carry on doing business in | | | | wait till property prices decrease. |
| the same way as they did before. Or in other words | | | | |