GranTourismo under 40k

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bigbob

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saywellhq said:
Our house that we rent is up for sale at the moment - once that has been sold I'm using some of the money to get myself a Maser.

Because the house is at the lower end of the market £120k, the price is aimed at the first time buyers, and we have had plenty of people like the house, 2nd viewings etc and then when they apply for a mortgage most are being knocked back for silly things that happened 8 months ago. One girl phoned in tears to apologise that Nationwide had turned her down because she missed 1 credit card payment. This is the 4th such story I have heard.

So I may have to wait 18 months to sell and buy a car!
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The government is being very two faced about this at the moment. It tells the banks to lend but the regulators impose such harsh conditions on the banks that they cannot lend. It is really hard for people who most of us would say are worth lending to but cannot get finance. Things needed to be relaxed a tad to get things moving.
 
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bigbob

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BennyD said:
....it is, but the bankers still get bonuses for not lending money. Capitalism gone crazy.
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Bankers bonuses have nothing to do with personal lending. That's why retail and investment banking needs to be split up like it was in the US after the Wall Street Crash of 29.
 
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bigbob

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saywellhq said:
It is crazy - the Government have the New Buy scheme which helps people buy a new build house with only a 5% deposit.. But they do nothing or very little to help existing homeowners shift older houses.

Me and the wife looked at some new builds a few weeks ago, and the builder (well known) was offering 5% value of the house as a rebate and paying stamp duty. All in they were prepared to give us £25k in incentives. Can’t compete with that!

However someone looking to buy our house, would need a minimum of 10% for deposit, solicitor fees, and some incidentals. You are looking at £15k for a first time buyer. It’s a lot of money. A few years ago parents were prepared to lend money to their offspring, but they are now being impacted by the low interest rates on savings and also the fear of losing their job.

Another girl couldn’t proceed because her Dad (who was a guarantor for her) had to cut his hours down at work, so again she was rejected a mortgage. Even though she could comfortably pay the monthly mortgage payments

Could take some time for whole market to gain confidence again.
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Most first time buyers need more than £15k. Credit is too tight but it is the typical over reaction to when it was too loose.
 
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saywellhq

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bigbob said:
Most first time buyers need more than £15k. Credit is too tight but it is the typical over reaction to when it was too loose.
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True - A lot of Banks - HSBC is one require more than a 10% deposit for first time buyers. I know they want 15% if you buy a new build.

A little more freedom to lending would work wonders, were not all Mexicans who just default and walk away.

The banks are stuck bewteen a rock and a hard place. The EU wants them to have liquidity on there balance sheets, which impacts on them lending. The BOE easing money to the banks to help them lend, end up proping up there balance sheets as required by the EU.

Then all the MP's come out and slam the banks for not giving people money.

It's a tough place, but something needs to give, or this could drag for a long time.
 
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bigbob

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Apparently HSBC have some of the stricter lending criteria but that comes from having some of the best products on hte market - they can be very picky.
 
Andyk

Andyk

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Saw that one Andy..Looks lovely..Just needs the bird cage alloys on her.....But great value all the same..
 
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