Dow 2006

[catracho]

HBOS to offer new mortgage at 125% of value

By Sharlene Goff (Financial Times)

Published: November 3 2006 22:10 | Last updated: November 3 2006 22:10

HBOS, the UK’s biggest lender, is to start offering mortgages that allow people to borrow more than the value of their property, in a move that will make such products more accessible.

The owner of Halifax building society and BM Solutions, the specialist mortgage lender, is likely to launch a product within days that could allow buyers to borrow up to about 125 per cent of the value of their home.

The beginning of the end of the bubble?

 

[kriesau]

HBOS to offer new mortgage at 125% of value
Sharlene Goff (Financial Times)
November 3 2006 22:10
HBOS, the UK’s biggest lender, is to start offering mortgages that allow people to borrow more than the value of their property, in a move that will make such products more accessible. The owner of Halifax building society and BM Solutions, the specialist mortgage lender, is likely to launch a product within days that could allow buyers to borrow up to about 125 per cent of the value of their home.
The beginning of the end of the bubble?

The Sunday Times
November 05, 2006
Clare Francis

Fears over spiralling home loans. Alarm bells ring as the big high street lenders start to offer mortgages at five times salary.

HOMEBUYERS are being encouraged to take on potentially dangerous levels of debt to get on the property ladder as house prices continue to surge. Advisers are growing increasingly concerned that many homebuyers are overstretching themselves as they battle to get into the market. Figures released on Friday show they may have reason to be worried. Mortgage repossession orders are at a five-year high, although not all of these will result in recipients’ homes being repossessed. The average house price has almost tripled across the UK during the past decade, according to Halifax, rising 187% to £179,000 since February 1996.

The recent mini-boom in the housing market has made matters worse. House prices are rising at their fastest pace for two years, according to the property website Hometrack. The Bank of England said the number of mortgage approvals hit its highest level in more than two-and-a-half years last month. Fionnuala Earley, Nationwide’s group economist, said: “Recent housing-market indicators have been firm, and the latest approvals data from the Bank of England show that the August rise in rates did nothing to curb demand.”

House prices are at their highest relative to incomes since records began. The average home now costs six times average earnings, says Nationwide.

Price Waterhouse Coopers, a consultancy, warned last week there was a one in three chance that prices could fall over the next four years. If house prices do drop, owners could find themselves with negative equity, where the value of the outstanding mortgage is greater than that of the property.

http://www.timesonline.co.uk/newspaper/0,,176-2437433_1,00.html

 

[Pat494]

How do you guys see the effects of the up-coming Congressional election results ?
One or both Houses could swing over to the democrats.

 

[catracho]

It seems that it is a foregone conclusion that the dems will do well; assuming the market prices in future news, the fact that the democrats will do well has not led to a deep market sell off. before hand; maybe a knee jerk reaction to downside to come on the "news" and as long as 11900 (edited if 11900 broken then look for retracement to 11600
) level is not breached, then a rally to new highs...
before the "proper" correction hits..

all guess work!!

 

[FetteredChinos]

hope you all managed to treat yesterday as a buying opportunity? we're still in the month-end markup period, so any bias is upwards, plus its also the end of year markup.. in other words, this baby is going up for some time, at least until the big boys finally pull the plug and start cashing in..

I did warn you all... now, its broken out of its recent downtrend. all we need is a decent higher low and its "corfu for christmas" to quote Brian Potter...

 

[Pat494]

I did warn you all... now, its broken out of its recent downtrend. all we need is a decent higher low and its "corfu for christmas" to quote Brian Potter...

Looks like your lucky coin is working FC
Cant say I've heard of Brian P. not Harry's big brother is he ? LOL

 

[FetteredChinos]

Looks like your lucky coin is working FC
Cant say I've heard of Brian P. not Harry's big brother is he ? LOL

lol well they do look alike (see image)

he is the principle character in Phoenix Nights, written by, and starring Peter Kay

quite amusing if you like that sort of thing..

coin is working well though, its amazing that i havent had it land on its side yet, ive tossed it so much.

ahem

FC

 

[mark twain uk]

Well, my shorts are not doing very well, but I've just added to them at 12.090 and 1377 cash with a tight stop loss, I have a feeling that at 8:00 the market will make a sharp move, if it's up, I'll get stopped out, if it's down, I may end up in the black for the day.

 

[karmit]

We should rename this thread to:

"Technical analysis of DOW for make profit of glorious day traders"

 

[FetteredChinos]

lol, not if they are short going into the end of year markup though!

 

[dc2000]

Hi FC sorry missed your post the other day( only poped in whilst crimbo shopping) good to have you back

 

[Gap Man]

Well, my shorts are not doing very well, but I've just added to them at 12.090 and 1377 cash with a tight stop loss, I have a feeling that at 8:00 the market will make a sharp move, if it's up, I'll get stopped out, if it's down, I may end up in the black for the day.

fwiw i think we'll be closing at the highs - 12120's....?

 

[dc2000]

an 068 close would be better IMO dont want to blow the dough in one go

 

[karmit]

why would markets go up during an election after a 1200 point rally...

hmm... lets see... Santa Claus rally this year - or Grinch?

 

[mark twain uk]

an 068 close would be better IMO dont want to blow the dough in one go

dc,

do you think that the correction is now done? I have a feeling that it has got a bit more to go.

and is your 068 cash or dec?

 

[dc2000]

Hi Mark it hasn't started yet

 

[dc2000]

068 is cash

I still expect things as per Oct PM

 

[mark twain uk]

me too

 

[leovirgo]

Started shorting at 12140 YMZ06. Anybody has longs??? I might as well cover it on weakness tomorrow..

 

[dc2000]

Anybody has longs???

not yet but will have from 068(cash price) tomorrow not too greedy though 95 points will do